Ohio Probe Sought in Pensions' Currency Dispute

Jun 15, 2011

Ohio Treasurer Josh Mandel is requesting an investigation into whether banks overcharged four of Ohio's five pension funds and the state's injured worker insurance fund for foreign currency services.

In a letter Tuesday to Ohio Attorney General Mike DeWine, Mandel says banks may have manipulated exchange rates on foreign investments over the past dozen years, costing Ohio pensioners and businesses tens of millions of dollars.

Ohio joins a growing chorus of states pursuing actions against State Street Bank and Bank of New York Mellon Corp. California, Florida, North Carolina, Virginia and Massachusetts are all either investigating or have sued.

The U.S. Securities and Exchange Commission also is investigating.