Connecticut Attorney General George Jepsen issued an RFP for a consultant to review foreign currency exchange trading and “to assist in potential litigation” involving transactions by State Street Bank and Trust, master custodian for the $24.1 billion Connecticut Retirement Plans & Trust Funds, Hartford.
Mr. Jepsen wants a firm to “provide certain foreign currency transaction cost analysis and consulting services to assist in an investigation and potential litigation, according to the RFP, which is posted on the attorney general's website.
The consulting firm will “assist in analyzing FX trading costs by currency, as well as the fees related to FX transactions … that were charged by State Street Bank and Trust Co. and its affiliates, investment managers and executing brokers,” the RFP said. “The purposes of this analysis is to determine whether these costs … were fair, reasonable, accurate and appropriate.”
The consultant will assist in “reviewing trading transactional data produced by State Street Bank and Trust Company and its affiliates … and potentially providing expert testimony as part of any litigation that results from the (attorney general's) investigation,” the RFP said.
“We are aware of public reports questioning how much State Street charges its custodial customers on foreign exchange transactions,” Susan Kinsman, director of communications for Mr. Jepsen, said in an e-mail Monday. “State Street handles some foreign exchange transactions for the state. We are reviewing the matter and have reached no conclusions.”
David Rivera, a spokesman for Treasurer Denise Nappier, the principal fiduciary of the state pension system, did not provide information by press time.
“The state of Connecticut remains a valuable client of State Street, and we will not otherwise comment on our relationship with the State,” Alicia Curran Sweeney, a State Street spokeswoman, wrote in an e-mail Monday.
Applicants should mail or deliver proposals to: State of Connecticut, Office of the Attorney General, Attention: Associate Attorney General Joseph Rubin, RFP #2012-09, 55 Elm St., Hartford, CT. 06106.
Proposals are due at 4:30 p.m. EDT May 11. No selection date was listed on the RFP.