State Street Sued: California AG Jerry Brown Sues Bank For "Unconscionable Fraud"

[depakid]

Source: Huffington Post

Citing "unconscionable fraud," California Attorney General Jerry Brown announced a major lawsuit today against State Street Bank and Trust. Brown seeks to recover more than $200 million from the Boston-based bank. According to the complaint, State Street overcharged California's largest pension funds, CalPERS and CalSTRS, for the execution of foreign currency trades. From the press release:

"Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California's public pension funds," Brown said. "This is just the latest example of how clever financial traders violate laws and rip off the public trust." The suit, which was unsealed today by a Sacramento Superior Court judge, contends that Boston-based State Street illegally overcharged CalPERS and CalSTRS for the costs of executing foreign currency trades since 2001.

The case was originally filed under seal by whistleblowers - "Associates Against FX Insider Trading," who alleged that State Street added a secret and substantial mark-up to the price of interbank foreign currency trades. The interbank rate is the price at which major banks buy and sell foreign currency. Subsequently, Brown launched an independent investigation into the allegations.

<snip>

Brown's office estimates that the pension funds were overcharged by more than $56.6 million over eight years. The lawsuit asks for relief in the amount of triple California's damages, civil penalties of $10,000 for each false claim; and recovery of costs, attorneys' fees and expenses. It is estimated that damages and penalties could exceed more than $200 million.

Read more: http://www.huffingtonpost.com/2009/10/20/post_268_n_327261.html

[yorgatron]

1. get'em Jerry!

[conscious evolution]

2. The bushiest bank of all

I wish Idesofoctober and corpgovactivists journalshad not been deleted.They had a lot of good info on this bank and its shenanigans.
IIRC,a lot of other groups are sueing them also.

[truthisfreedom]

7. You may be able to find those old sites on archive.org using the wayback machine.

It's effective. I use it to recover lost/forgotten information from years ago.

[CountAllVotes]

3. go get 'em GOVERNOR BROWN

n/t

:kick: & recommend.

[jgraz]

5. Shoulda been PRESIDENT BROWN

We'd all be a helluva lot better off right now.

[CountAllVotes]

10. that is for sure!

I voted for him for President when he ran in the 1970s. He is a fine man with a very fine brain!

He doesn't take any crap that is for certain!

GO JERRY!

:kick:

[quiet.american]

4. K&R nt

[KansDem]

6. "Over a period of eight years..."

Wonder why that phrase keeps popping up...:shrug:

...NO I DON'T!!! :rofl:

[DebbieCDC]

8. Go Jerry!!

[Trillo]

9. Every once in awhile a prosecutor warms the heart.

Most of the time, the cops, and their attorney prosecutors if it escalates, just go after little people.

[Hekate]

11. KnR for Jerry Brown! No moonbeams in his eyes! nt