SEC tells State Street it could face civil charges

NEW YORK (AP) — State Street Corp. on Monday disclosed in a regulatory filing that the Securities and Exchange Commission could bring civil charges against its primary subsidiary for possible securities violations.

State Street Bank and Trust Co. received a "Wells" notice from the SEC on Thursday tied to an ongoing investigation into disclosures and management of certain fixed-income strategies during 2007 and earlier periods, according to the filing.

The notice indicates the possibility of an enforcement action and allows for the trust bank to provide its perspective on the investigation before any formal proceedings begin.

Boston-based State Street provides accounting, brokerage and other services to mutual funds, retirement plans, insurance companies and other customers. The company said it has been cooperating with the SEC, the Massachusetts Secretary of State and the Massachusetts Attorney General.