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State St reserves running dry

State Street, one of the world's biggest institutional investors, said yesterday that it may not have set aside enough money to cover fees and penalties linked to lawsuits and investigations by regulators into risky investments. Two years ago State Street set aside $625m (&pound;379m) to cover costs stemming from lawsuits by clients charging that the company misrepresented its investment strategy. At the end of June, the company said it had $193m left in the reserve.<br />