CalPERS Renews State Street Custody Contract

If you break up with your spouse and then announce to the world that s/he is a liar and a cheat, you can expect to raise a few eyebrows if you later announce that you are renewing your vows. This is akin the situation now being faced by the State of California and its largest retirement system.

In this story, Christopher Condon writes that CalPERS recently signed a contract with State Street Corp. for handling CalPERS’ custody work. This wouldn’t be unusual except that, as Mr. Condon reports, then California Attorney General Jerry Brown in 2009 filed this lawsuit and issued this press release accusing State Street of committing “unconscionable fraud”.