William Hunt, the president and chief executive of State Street Global Advisors (SSGA), has resigned, as the hedge fund’s Boston-based parent company announced it would take a $279 million pre-tax charge for costs stemming from US subprime mortgages.State Street said it would search both internally and externally for a new chief executive of SSGA. For now, Hunt will be replaced by James Phalen, who is State Street’s head of international operations for investment servicing, research and trading. He takes over as interim president and chief executive, reporting to State Street’s chairman and chief executive, Ronald Logue.
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.”
More on People
Lourdes Centeno and Elisabeth Roegele join EU financial regulator
UK office adds Bhavick Patel while Alain Kunz joins in Switzerland
Deutsche's Fan exits; Credit Suisse investment banking co-head retires; Sweden's prudential regulator hires new director general
He has served as the bank's co-head since 2012
Sign up for Risk.net email alerts
Sanjay Sharma talks about risk transparency and how his book helps achieve it.
A five-minute formula from Alexander Denev that takes you through a simple probabilistic graphical model and explains how and why these are used. Find out more about the ground-breaking book, Probabilistic...
Industry leader Vincent Kaminski discusses the challenges faced by energy markets and his new book, Managing Energy Price Risk, 4th Edition.
Momtchil Pojarliev talks about his book, The Role of Currency in Institutional Portolios, currency investing and the potential role of currencies in institutional portfolios.
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.