BNY Mellon overcomes FX controversy to win Florida pension deal
Sept 12 (Reuters) - Florida's $166 billion pension plan said it would retain BNY Mellon Corp as the guardian of its assets, extending a long-term relationship that has included allegations that the custody bank overcharged the state millions of dollars on foreign currency trades.
An evaluation team at the Florida State Board of Administration, which oversees the big public pension fund, recommended negotiations begin with BNY Mellon on a new contract, SBA spokesman John Kuczwanski said late on Wednesday.
The deal is a big win for BNY Mellon because it fended off top custody bank rivals State Street Corp and JPMorgan Chase & Co for an engagement at one of the largest public pensions in the country. The job includes safeguarding assets, settling trades and collecting income and dividends from investments.
BNY Mellon was not immediately available to comment.
The world's largest trust bank with about $26 trillion in assets under custody and administration, BNY Mellon is currently the pension fund's custodian on a contract that began in 2005.
But in 2011, Florida Attorney General Pam Bondi filed a civil lawsuit against the bank, accusing it overcharging the retirement fund by millions of dollars on forex trades.
The bank has denied any wrongdoing. After the state filed its complaint, BNY Mellon filed a motion to dismiss. There is currently no hearing date scheduled on the motion, said Jennifer Meale, a spokeswoman for the attorney general's office.
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