State Street's sub-prime mess

Stephen Rosenberg discusses lawsuits against State Street Corp. by pension funds that say the company improperly invested their money in risky real-estate funds - which could leave the company vulnerable to hundreds of millions of dollars' worth of damages if it loses:

... [I]t may well be that the administrators' fiduciary duties under those circumstances require them to then try to remedy their initial mistakes by suing to recover the losses, rather than compounding their own fiduciary breaches by simply absorbing the loss; that latter course of action would likely just make the administrators themselves targets for breach of fiduciary duty lawsuits based on their own mistakes in investing in the State Street funds. ...