State Street faces suit over CalPERS fees

California Attorney General Jerry Brown is suing State Street Bank and Trust (SST), seeking $200 million in damages for allegedly defrauding the state's giant pension funds.

"Over a period of eight years, State Street bankers committed unconscionable fraud by misappropriating millions of dollars that rightfully belonged to California's public pension funds," Brown said in an e-mailed statement. "This is just the latest example of how clever financial traders violate laws and rip off the public trust."