The Boston-based State Street Corp. will pay $70 million to settle three lawsuits, in which plaintiffs accuse the bank of overcharging customers for foreign exchange services and falsely claiming its mortgage-backed securities investments were safe, Reuters reports.
State Street’s alleged actions resulted in shareholders suffering huge losses when the bank’s shares plummeted during the 2008 recession, Forbes reports. At that time, the bank’s currency services came under scrutiny, as state and federal regulators started to question whether clients were being cheated, according to Reuters.
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