Massachusetts says State Street unit overcharged clients

Wed Apr 20, 2016 10:51am EDT
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BOSTON, April 20 (Reuters) - Massachusetts' top securities regulator on Wednesday charged that a unit of custody bank State Street Corp. overcharged custodial clients, including pension, mutual and hedge funds.

William Galvin said State Street Global Markets LLC has engaged in a pattern of overcharging, noting the company often labeled charges for secure electronic messages, known as SWIFT messages, as "out-of-pocket" expenses that contained concealed markups of up to 1,900 percent. (Reporting by Svea Herbst-Bayliss)