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BOSTON — State Street Corp. says a legal reserve of about $625 million it established two years ago may not be enough to cover claims and penalties related to fixed-income investments that include subprime mortgages.
The Boston-based company disclosed the news in its quarterly filing with the Securities and Exchange Commission early Monday.
In late June, the SEC told State Street it was considering enforcement action against the company after investigating its fixed-income strategies during 2007 and prior periods. In 2007, State Street set up the reserve of about $625 million to cover potential claims.
