BOSTON (CN) - State Street Bank and Trust will pay more than $300 million to institutional investors that lost money during the subprime mortgage securities fiasco, the SEC said in a settled complaint. The agreement comes on top of a $350 million settlement with private investors.
"State Street led investors to believe that their investments were more diversified than a typical money market portfolio, when instead they were invested almost entirely in subprime investments that ultimately caused hundreds of millions of dollars in losses," the SEC's head of enforcement, Robert Khuzami, said in a statement.
The investors included trust funds, pension funds, retirement plans and charities.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.