State pension board cuts BNY Mellon’s role
Bank was accused of overcharging
The Massachusetts state pension fund board yesterday voted to hire a new firm to handle some foreign-exchange trades, Russell Implementation Services, to cut costs on smaller currency trades related to overseas investments. Fund officials made the move following allegations that the pension plan’s custodian bank, Bank of New York Mellon Corp., had overcharged the state more than $29 million on foreign exchange over a decade. Fund officials estimated the new program would save at least $1.2 million in fees.