State Street Faces Possible SEC Action

State Street (STT Quote) faces possible civil action from the Securities and Exchange Commission related to certain investments tied to subprime mortgages sold to customers, according to a regulatory filing on Monday.

The Boston-based company received a so-called Wells notice on June 25 regarding its principal subsidiary State Street Bank and Trust Co., according to the filing. Wells notices give recipients an opportunity to respond to regulatory complaints before they are filed.

The Wells notice relates to an ongoing SEC investigation into "disclosures and management by State Street Global Advisors of certain active fixed-income strategies during 2007 and prior periods." ...