Money manager State Street may be sued by the Securities and Exchange Commission for violating securities laws, according to Bloomberg. The Boston-based manager said that it has received a notice from the agency that looks to follow up on a recent investigation into the bank’s investment activity.
According to State Street, the SEC investigated the manager’s disclosures and management of certain fixed-income investments made through 2007. State Street has received a Wells notice—an SEC letter that says the recipient may see enforcement action, and allows the recipient to provide reasons against enforcement.
State Street was already sued by investors for its poor investment on faulty mortgage-backed securities; the manager set aside $618 million in 2007 to settle the legal claims relating to these losses.