State Street executives said Monday that the legal reserve they set up in 2007 to address litigation in connection with State Street Global Advisors' fixed income strategies may not be enough to "address ongoing litigation." Company officials made the comment as part of a 10Q filing with the SEC.

State Street in 2007 established a reserve of about $625 million, of which $193 million remained at the end of June.

Executives mentioned the Wells notice they received from the SEC on June 25, adding that they're in talks with SEC staff, as well as the Massachusetts Secretary of State and other regulators about their related inquiries.

"If the SEC or other regulators were to pursue an enforcement action, they would likely seek monetary or other penalties or remedies," executives said in the filing. "Depending upon the resolution of these governmental proceedings, the remainder of the reserve established in 2007 may not be sufficient to address ongoing litigation, as well as any such penalties or remedies."  

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