SEC charges two State Street employees for misleading sub-prime mortgage info

The Securities & Exchange Commission (SEC) has charged a pair of employees at Boston-based State Street Bank and Trust Company with misleading investors about their exposure to sub-prime investments. The SEC’s Division of Enforcement claims that John Flannery and James Hopkins marketed State Street’s Limited Duration Bond Fund as an “enhanced cash” investment strategy that was an alternative to a money market fund for certain types of investors.