Are My Losses With State Street Bank Recoverable?

They may be. The Securities and Exchange Commission (SEC) announced today that State Street has agreed to pay more than $35 million to settle charges that it fraudulently charged secret markups for transition management services and separately omitted material information about the operation of its platform for trading U.S. Treasury securities. According to the SEC order, State Street garnered approximately $20 million in improper revenue by overcharging transition management customers. When a customer uncovered the scheme, State Street falsely called the false trading statements, pre-trade estimates and post-trade reports, “fat finger errors,” and “inadvertent commissions,” which were false. In a separate order, the SEC found that State Street failed to inform subscribers to its government securities trading platform called GovEx. Customers were allegedly misled regarding their order handling operations. State Street agreed to pay $3 million because of these allegations. State Street Global Markets, State Street Global Advisors Funds Distributors and State Street Bank and Trust Company agreed to pay $32.3 million in order to settle the fraud charges for the hidden transition services markups.