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Northern Trust, State Street Bank and JP Morgan may have exposed retirement plans to inappropriate risk and subsequent losses.
Investigation Source
- Nationwide
Investigation Scope
Category Information
Investigation Topics
- Investments
- Unsuitable Investments
- Retirement Asset
- Investment Advisor Duties
Products or Services
- Employee Retirement Plan Sponsors or Administrators
- Index Securities
Injury Type
- Monetary Loss
Investigation Details
Investigation and potential class action lawsuit against The Northern Trust Company and Northern Trust Investments, N.A. (collectively, "Northern Trust"); State Street Bank & Trust Company (“State Street”); and JPMorgan Chase Bank, N.A. (“JP Morgan”) respect to their engagement in securities lending programs. These lending programs have resulted in severe losses to retirement savings and pension plans protected under the Employee Retirement Income Security Act ("ERISA").
This investigation focuses on allegations that Northern Trust, State Street and JP Morgan, as well as several other financial institutions, engaged in securities lending programs that involved inappropriate risk and led to inappropriate losses to ERISA-protected retirement plans. Funds invested on behalf of many ERISA-protected retirement plans were supposed to have been benchmarked against common indices, i.e., the S&P 500 Index or the Lehman Brothers Aggregate Bond Index.
However, the funds that several retirement plans were invested in have not been performing comparatively with their benchmarks due to the alleged inappropriate risk assumed by companies like Northern Trust, State Street Bank and JP Morgan.
This investigation focuses on allegations that Northern Trust, State Street and JP Morgan, as well as several other financial institutions, engaged in securities lending programs that involved inappropriate risk and led to inappropriate losses to ERISA-protected retirement plans. Funds invested on behalf of many ERISA-protected retirement plans were supposed to have been benchmarked against common indices, i.e., the S&P 500 Index or the Lehman Brothers Aggregate Bond Index.
However, the funds that several retirement plans were invested in have not been performing comparatively with their benchmarks due to the alleged inappropriate risk assumed by companies like Northern Trust, State Street Bank and JP Morgan.
Defendant Details
| Name (Stock Symbol) | Brief Description |
|---|---|
| Northern Trust Corporation (NTRS) | Northern Trust Corporation provides investment management, asset and fund administration, and other banking services. |
| JPMorgan Chase & Co. (JPM) | JPMorgan Chase & Co., a financial holding company, provides a range of financial services worldwide. It operates in six segments: Investment Bank, Commercial Banking, Treasury & Securities Services, Asset Management, Retail Financial Services, and Card Services. |
| State Street Corporation (STT) | State Street Corporation, through its subsidiaries, provides a range of financial and investment products and services for the institutional investors worldwide. |