California Sues State Street For Fraud

The state of California is suing State Street Corp., alleging that the Boston investment bank fraudulently managed California’s pension funds.

California Attorney General Jerry Brown has accused State Street of $200 million worth of fraud, saying the investment bank helps manage some of the state pension funds and charged higher prices for foreign currency trades than were actually incurred.

State Street spokewoman Hannah Grove categorically denies the allegations. "We always act in the best interest of our customers and shareholders," she said.

Grove said the company will vigorously defend itself. The California complaint comes after a group of whistleblowers raised these charges in a lawsuit last year.