Oregon could recover up to $15 million in lost investment money under a settlement announced Friday.
Attorney General Ellen Rosenblum said Oregon's Public Employee Retirement System and Common School Fund lost millions when the Bank of New York's stock fell.
Rosenblum said the Bank promised investors the best currency prices available. But the bank failed to deliver on that promise, causing the stock value to fall. So, Oregon sued.
"We — Oregon — claimed, and the bank has now admitted, that its customers usually received the worst prices, or near-worst prices of the day," Rosenblum explained. "The Bank of New York would profit by getting the difference, or the spread, between what the bank purchased the currency for and what it sold the currency to its customers for."
The Bank of New York settlement is capped at $180 million. All but $15 million of that will benefit investors outside of Oregon.
Rosenblum said Oregon won't see its money for a while because a New York judge has to sign off on the settlement, and officials have to identify all the affected parties.
Copyright 2015 Oregon Public Broadcasting
