According to reports, the Massachusetts Secretary of State has fined a unit of State Street Corp. $5 million for its role in a mortgage-backed debt obligation.
State Street is a Boston-based financial services company registered with FINRA. According to Secretary of State's office, State Street Global Advisors failed to disclose a hedge-fund's involvement in a $1.56 billion collateralized debt obligation known as Carina CDO Ltd. State Street purportedly acted as the investment manager of Carina.
Apparently the Carina CDO consisted primarily of mortgage-backed securities and subsequently defaulted.
The settlement order censures State Street and requires it to pay a civil administrative penalty of about $1.4 million to the Commonwealth of Massachusetts and to disgorge to the Commonwealth an additional $3.5 million.
Collateralized debt obligations (CDOs) are a type of structured asset-backed securities with multiple risk "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. With the real estate market collapse in 2008, many of these investments plummeted and investors lost billions.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
State Street is a Boston-based financial services company registered with FINRA. According to Secretary of State's office, State Street Global Advisors failed to disclose a hedge-fund's involvement in a $1.56 billion collateralized debt obligation known as Carina CDO Ltd. State Street purportedly acted as the investment manager of Carina.
Apparently the Carina CDO consisted primarily of mortgage-backed securities and subsequently defaulted.
The settlement order censures State Street and requires it to pay a civil administrative penalty of about $1.4 million to the Commonwealth of Massachusetts and to disgorge to the Commonwealth an additional $3.5 million.
Collateralized debt obligations (CDOs) are a type of structured asset-backed securities with multiple risk "tranches" that are issued by special purpose entities and collateralized by debt obligations including bonds and loans. With the real estate market collapse in 2008, many of these investments plummeted and investors lost billions.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 30 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors' rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.
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