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William F. Galvin

SEC Charges Two State Street Employees for Misleading Sub-Prime Mortgage Info

Wall_Street_Sign

The Securities & Exchange Commission (SEC) has charged a pair of employees at Boston-based State Street Bank and Trust Company with misleading investors about their exposure to sub-prime investments. The SEC's Division of Enforcement claims that John P. Flannery and James D. Hopkins marketed State Street's Limited Duration Bond Fund as an "enhanced cash" investment strategy that was an alternative to a money market fund for certain types of investors.Click to continue

SEC charges State Street for misleading investors about sub-prime mortgage investments

Judges Gavel

The Securities and Exchange Commission (SEC) has charged Boston-based State Street Bank and Trust Company with misleading its investors about their exposure to sub-prime investments while selectively disclosing more complete information to specific investors. State Street has agreed to settle the SEC's charges by paying more than $300 million that will be distributed to investors who lost money during the sub-prime market meltdown in 2007.Click to continue