State Street faces lawsuits over bond-fund losses

State Street Corp. is facing lawsuits after bond funds designed to track and beat major indexes made aggressive bets on mortgage-backed securities that led to massive losses. Attorneys general in Alaska and Idaho are considering legal action against the Boston-based firm over losses in state pension funds. "The returns on the funds were not what was expected from an enhanced-index fund," said Brad Goodsell, deputy attorney general for Idaho.

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