Thursday, January 03, 2008

Lawyers Making Money

Such a sweet, sweet sound. State Street gets ready to lawyer up. Bloomberg (01.03.07):
"State Street Corp., the world's largest money manager for institutions, said the head of its investment unit resigned after the company set aside $279 million to cover legal costs from losses on subprime mortgages."

State Street Investment Chief Resigns After Losses

What's the problem? "State Street faces at least three lawsuits filed by clients who accused the firm of breaching its fiduciary responsibilities as a fund manager. Each claims that investment strategies sold as low risk led to substantial losses because of investments in mortgage-backed securities."

The CEO "said the company will defend itself against 'inappropriate claims' stemming solely from changes in market conditions."

So there.

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