State Street's Subprime Shakeup |
| TheStreet.com - Jan 3, 2008 |
State Street builds a $618 million legal defense fund and shows a top executive the door as subprime investment losses mount.
The institutional investment giant says it will take an after-tax charge of $279 million, or 71 cents a share, to cover potential legal costs related to losses from its mortgage-backed investments. The company also says William Hunt, CEO of State Street Global Advisors, has resigned and James Phalen has taken over as interim chief.
"We have reviewed the actively managed fixed-income strategies at SSgA that contained investments backed by subprime mortgages. 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 costs relating to these strategies," State Street CEO Ron Logue said in a press release.
Read Full Article from TheStreet.com
- Posted: 2008-01-03 09:26:52
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