Two charged with marketing sub-prime fund as 'enhanced cash'

According to the US regulator, John Flannery and James Hopkins marketed State Street's Limited Duration Bond fund as an "enhanced cash" strategy, even though the vehicle mostly investing in residential mortgage-backed securities. Flannery was a chief investment officer who no longer works at State Street. Hopkins was a product engineer at the time, and is currently State Street's head of product engineering for North America. "Hopkins and Flannery misled State Street's investors about the risks and credit quality of a fund concentrated in sub-prime bonds and other sub-prime investment...