COLUMBUS, Ohio (AP) -- Ohio's treasurer has cut ties with two banks over concerns the institutions may have manipulated foreign exchange rates charged to four of the state's pension funds, potentially costing beneficiaries millions of dollars.
State Street Corp. and Bank of New York Mellon Corp. had provided foreign investment services to the pension funds. As custodial banks, they typically handled foreign currency transactions on international investments on behalf of the funds.
Ohio Treasurer Josh Mandel on Monday picked Citibank and JP Morgan Chase to oversee roughly $41 billion of the pensions' international assets.
The switch comes after the state's attorney general filed a lawsuit last week against BNY Mellon, alleging fraud, deceptive trade practices and other misdeeds in the handling of the state's retirement funds for police officers, firefighters and school employees.