State Street Corp. yesterday said it added $250 million to a legal reserve, and revised its third-quarter earnings results downward to reflect the change.
The financial services firm kept its 2009 forecast.
State Street, which provides financial services to institutional investors like retirement plans and insurance companies, said it boosted the legal reserve to cover potential fines from regulatory probes and to address ongoing lawsuits regarding risky investments.
The Boston company established the reserve during the fourth quarter of 2007 with $625 million. In an August regulatory filing, it said it had made $432 million in payments, and had $193 million left as of June 30.
Yesterday, State Street said it recently entered into a settlement of the class action suit. A proposed settlement of $89.75 million is awaiting court approval, the company said.
