Mass. To Probe State Street Over Risky Securities

Law360, New York (April 29, 2009, 12:00 AM EDT) -- Financial services provider State Street Corp. is reportedly facing a probe from Massachusetts’ top securities regulator over claims the firm improperly marketed risky funds containing mortgage-backed securities as safe investments.

Secretary of the Commonwealth of Massachusetts William Galvin is investigating whether the company made "representations that were either flat-out untrue or potentially deceptive," according to the Wall Street Journal.

"It's one thing when we see a pension fund taking unreasonable risks, but it's worse when you have a pension fund attempting to do the right thing,...
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