CUSTODY

Massachusetts PRIM Reportedly Putting Custody Contract Out for Bid

The Boston Globe is reporting that the audit committee of Massachusetts Pension Reserves Investment Management (PRIM) voted today to put its custody contract out to bid. BNY Mellon currently serves as custodian for the pension, which has accused the custodian of overcharging it on foreign exchange transactions.

The Boston Globe is reporting that the audit committee of Massachusetts Pension Reserves Investment Management (PRIM) voted today to put its custody contract out to bid. BNY Mellon currently serves as custodian for the pension, which has accused the custodian of overcharging it on foreign exchange transactions.

The Boston Globe reported that the $2.7 million contract expires in 2014 and that BNY Mellon will be invited to bid. PRIM did not confirm whether or not opening up the contract for bid was related to the FX suits, the newspaper wrote.

PRIM outsourced some of its FX business to Russell last year following the accusations against BNY Mellon.

Earlier this week, the Ohio treasurer swapped BNY Mellon and State Street with J.P. Morgan and Citi as custodians for four Ohio public pensions, saying he had a duty to end custodial agreements with banks being sued for defrauding taxpayers. BNY Mellon and State Street are involved in a number of lawsuits from state pension systems that have accused them of overcharging on FX transactions.

(CG)