04 Jan 2008, Mark Pengelly, Risk magazine
State Street said it was using the $279 million fourth-quarter pre-tax charge to address legal and other costs arising from the underperformance of some of SSGA’s actively managed fixed-income strategies.
“We have reviewed the actively managed fixed-income strategies at SSGA that contained investments backed by subprime mortgages,” said Logue. “Based on our review and discussions with certain customers who were invested in these strategies, we have established this reserve to address legal exposure and other related costs.”
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