The Justice Department and Securities and Exchange Commission are investigating State Street Corp. concerning the custody bank's solicitation of business from public pension funds, including “at least one instance” when one of its consultants made political contributions during and after a public bidding process, said a company filing with the SEC on Monday.
State Street also hired legal counsel to internally review matters that involve its “use of consultants and lobbyists in our solicitation of business of public retirement plans,” according to the 10-Q filing.
The filing did not name any consultants or lobbyists under investigation, nor did it identify the pension funds involved.
“While we are unable to predict the outcome of these matters, adverse outcomes could have a material adverse effect on our business and reputation,” State Street said in the filing.
Alicia Curran Sweeney, State Street spokeswoman, said in a statement that the firm is cooperating with the investigation. She wouldn't comment further, citing “confidential discussions with regulators and other authorities.”