A unit of State Street, State Street Global Markets LLC, has been accused by Massachusett's regulator, William Galvin, of routinely overbilling its customers for items such as messaging services, even after one executive pointed out concerns that a client may "discover that we are taking them to the cleaners". In his complaint, Galvin said the bank often labeled charges for secure electronic messages (SWIFT messages) as "out-of-pocket" expenses that contained concealed markups of up to 1,900 percent. State Street says it will repay clients and reform its billing processes.
A unit of State Street, State Street Global Markets LLC, has been accused by Massachusett's regulator, William Galvin, of routinely overbilling its customers for items such as messaging services, even after one executive pointed out concerns that a client may "discover that we are taking them to the cleaners". In his complaint, Galvin said the bank often labeled charges for secure electronic messages (SWIFT messages) as "out-of-pocket" expenses that contained concealed markups of up to 1,900%. State Street says it will repay clients and reform its billing processes.