Custodians have taken a battering recently from US states claiming that they may have improperly manipulated foreign currency trade prices on behalf of state pension funds to maximise their own profits.
The latest case is a San Francisco engineers' union bringing a lawsuit against BNY Mellon, claiming that the custody bank did not follow federal guidelines for currency trades for a pension fund. The union claims that BNY Mellon offered unfavourable forex rates for its pension fund.
