State Street To Pay $300M To Settle Subprime Claims

Law360, New York (February 4, 2010, 6:04 PM EST) -- State Street Bank and Trust Co. has agreed to pay more than $300 million to settle claims by the U.S. Securities and Exchange Commission and the Massachusetts Attorney General's Office that the investment manager misled investors about their exposure to subprime loans.

The SEC announced the settlement Thursday, saying the funds paid by State Street will be distributed to investors who lost money during the subprime market meltdown of 2007.

“We value our reputation as a trusted fiduciary to institutions around the world and we recognize...
To view the full article, register now.