State Street Corp.'s $625 million reserve fund for legal costs related to the subprime crisis "may not be sufficient," the company said in a federal filing Monday.
State Street established the reserve in 2007 for legal exposure related to fixed-income investment strategies the company employed leading up to the subprime meltdown.
The reserve was down to $193 million as of June 30, State Street said in a filing with the Securities and Exchange Commission. In the filing, State Street said there may not be enough left in the fund to pay for ongoing litigation, as well as civil penalties from possible enforcement actions.
