The two banks were charged with overseeing the international assets of four of the state’s five pension funds. The treasurer cut ties with the banks because of concerns that they may have manipulated foreign exchange rates and potentially costs plan participants millions of dollars, reports the Associated Press.
On Monday, Ohio Treasurer Josh Mandel picked Citibank and J.P. Morgan Chase as replacements to oversee the $41.3 billion in the pensions’ international assets. According to the Associated Press, J.P. Morgan Chase will be in charge of the international assets of the Ohio Public Employees Retirement System and the Ohio Police & Fire Pension Fund. Citibank will be the custodians for the international securities of the School Employees Retirement System and State Teachers Retirement System.
The replacement comes after the state’s attorney general filed a lawsuit last week against the Bank of New York Mellon Corp., alleging the bank was overcharging the state pension fun for foreign currency exchange transactions (see “Ohio Pension Funds Sue BNY Mellon”).
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