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http://www.propublica.org/article/financial-firm-fined-for-m...


State investigators in Massachusetts slapped the investment company State Street Global Advisors yesterday with a $5 million fine for failing to tell investors about the role of the hedge fund Magnetar in a risky collateralized debt obligation that collapsed in the housing market crisis.

In 2006, State Street and Deutsche Bank put together a $1.56 billion CDO deal, called Carina CDO Ltd. As we reported with This American Life and NPR, Magnetar was involved in the creation of at least $40 billion of CDOs

...

Carina defaulted only 16 months after it was launched. Investors lost nearly $450 million

...
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