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State Street Executive Resigns

A top investment manager with the world's biggest institutional money manager, State Street of Boston has resigned, because of major losses tied to the mortgage market meltdown.

Yesterday's resignation came the same day State Street said it would set aside $618 million to cover losses from bad investments.

The company is also facing lawsuits from investors including Prudential, who says State Street violated contracts by making risky investments. In addition, Secretary of State William Galvin has sent a subpoena to State Street, seeking information about several funds named in the Prudential suit.

This program aired on January 4, 2008. The audio for this program is not available.

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