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Bank Lost Millions In Pensions, Cops Say

HOUSTON (CN) - State Street Bank and Trust Co. lost "tens of millions of dollars" by putting $54 million in pension funds into "highly leveraged and illiquid ... subprime, mortgage-related derivatives," the Houston Police Officers Pension System claims in Federal Court. The police officers say State Street did this without disclosing it and in violation of contract that required the money to be invested in a "high-quality, low-risk, well-diversified fixed income portfolio." See complaint.

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