The Securities and Exchange Commission (SEC) charged Boston-based State Street Bank and Trust Co. with misleading its investors regarding their exposure to subprime investments. At the same time, State Street allegedly selectively disclosed more complete information to specific buysiders.

State Street has agreed to settle the SEC's charges by paying over $300 million that will be distributed to investors who lost money in the  2007 subprime market meltdown. This payment is aside from close to $350 million that State Street previously agreed to pay investors in State Street funds to settle private claims.

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