US financial institution State Street may face legal claims of as much as $7.8bn (€5.1bn) relating to losses suffered by its clients from asset-backed securities backed by sub-prime mortgages. The potential damages are more than 12 times the amount it has set aside for such claims.

The company's maximum exposure is equal to the entire, $7.8bn decline suffered by its portfolios as a result of the collapse of sub-prime mortage-related debt, according to Bloomberg, citing US lawyer Marcia Wagner or Wagner Law Group.