Friday, January 4, 2008
State Street Corp. will set aside $618 million to cover possible liability resulting from lawsuits filed by five clients who were invested in State Street funds that experienced substantial losses because of investments in mortgage-related securities. Four of the clients are pension funds that allege they were told their money would be invested in risk-free debt like Treasuries. The suits allege breach of fiduciary duties under pension law. In addition, the CEO of State Street's investment management unit resigned. NYTimes, State Street Corp. Is Sued Over Pension Fund Losses.