Subprime May Cost State Street Almost $8B

Law360, New York (May 9, 2008, 12:00 AM EDT) -- The subprime mortgage crisis may cost State Street Corp. almost $8 billion — far more than the $625 million it first anticipated, according to reports.

State Street created a fund earlier this year to cover the anticipated legal fallout from the current credit crisis, but it may end up paying damages amounting to as much as $7.8 billion, Bloomberg News reported on Friday.

At the end of 2007, the value of State Street's mortgage-backed asset portfolio had fallen to $6.1 billion, down from $13.9 billion at...
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