Law360, New York (January 03, 2008, 12:00 AM ET) -- Already the target of several subprime-related lawsuits, State Street Corp. is preparing for the worst. The bank has set aside $618 million to cover potential lawsuits stemming from subprime losses incurred by its fixed-income arm.
Boston-based State Street said on Thursday that it would take a $279 million after-tax charge in order to establish a reserve to fund the costs of anticipated litigation. In total, the reserve will hold $618 million.
“As a consequence of the unprecedented events in the credit markets over the past six...
State Street Sets Aside $618M For Subprime Suits
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