State Street Corporation is a financial holding company. The company, through its subsidiary, State Street Bank and Trust Company (State Street Bank), offers a range of financial products and services to institutional investors worldwide. It operates in two business segments: Investment Servicing and Investment Management. The Investment Services Division performs custody and related value-added functions, such as the provision of clearing, settlement and payment services to institutional investors. It operates by State Street Institutional Services, State Street Global Markets, State Street Digital and Charles River Development. Investment Management offers a range of investment management strategies and products to clients through State Street Global Advisors. Clients include mutual funds, mutual funds and other investment funds, occupational and public pension plans, insurance companies and others. In 1966, the company completed construction of the State Street Bank Building, a new headquarters, the first high-rise office building in downtown Boston. In 2009, California, on behalf of its pension funds CalPERS and CalSTRS, claimed that State Street had committed fraud in the depositary`s foreign exchange transactions. [49] [50] In October 2011, two executives of State Street Global Markets left the company after being charged with pricing a fixed income transaction. In April 2016, they were indicted by the U.S. Department of Justice.
[51] Global Markets is State Street`s securities business that provides securities research, trading and lending services for foreign exchange, equities, fixed income and derivatives. In order to avoid a conflict of interest, the company does not keep its own trading books. Global Markets has trading desks in Boston, London, Sydney, Toronto and Tokyo. [1] State Street provides institutional clients such as the above core services in custodial investments, hedge funds or investment/securities accounting, fund administration, securities finance and transfer agents. It offers these services in North American cities such as Boston, New York, Kansas City, Toronto and Irvine, California, as well as in many international financial centers such as London, Frankfurt, Munich, Cologne, Vienna, San Salvador, Hong Kong, Beijing, Dublin, Luxembourg, Jersey C.I. and Tokyo. It recently outsourced or outsourced part of its operations to joint ventures in Mumbai, Pune and Krakow in order to reduce labor costs and align its competitors and Wall Street firms with the same strategy. In 1975, William Edgerly became president and chief executive officer of the bank, shifting the company`s strategy from commercial banking to investments and securities processing. [16] State Street Bank and Trust Company, also known as Global Services, is State Street`s investment services division that provides asset owners and managers with investment (e.g., custody, corporate actions), fund accounting (pricing and valuation) and administrative services (financial, tax, compliance and legal reporting). Global Services manages assets across a wide range of categories, including equities, derivatives, exchange-traded funds, fixed income, private equity and real estate. State Street manages 40% of assets under management in the U.S. mutual fund market.
Global Services also provides outsourcing services for operations and manages $10.2 trillion in middle office assets. [1] In November 2011, the company was selected as one of 29 systemically important banks worldwide. [34] This article on US banks is a stub. You can help Wikipedia by expanding it. In 2016, State Street launched a program called Beacon, which focuses on reducing costs and improving reporting technology. [37] Their main goal was to reduce their U.S. workforce to increase profits by more than $2.5 billion (2018 figures). [ref.
needed] Also in 2016, the company acquired General Electric`s asset management business. [38] In 1995, State Street acquired investors Fiduciary Trust of Kansas City from DST Systems and Kemper Financial Services for $162 million. [20] [21] In 1996, The Bank of New York acquired the Investment Trust Servicing unit of Investors Fiduciary Trust Co., Kansas City, Missouri. [22] Another legislative criterion for the Department to consider is that SSGA Trust has sufficient capital to support its operations. The applicant indicated that it will contribute at least $10 million in initial capital to the capitalization of SSGA Trust. Capital adequacy will continue to be the subject of a full review during the division`s regulatory review process as SSGA Trust completes its organization. In addition to this capital contribution, a $10 million securities pledge agreement will be entered into to cover costs in the event of the preservation, receivership or liquidation of SSGA Trust. The requirements for the maintenance and full funding of the security lien under the terms of the securities pledge agreement are undefined unless modified, cancelled or released, in whole or in part, by the Commissioner of Banks in his sole discretion. Growth projections suggest that the proposed limited purpose trust would meet all regulatory capital requirements arising from its initial capital contribution.
The company dates back to the Union Bank, which received a charter from Massachusetts Governor John Hancock in 1792. It was the third chartered bank in Boston and its office was located at the corner of State Street and Exchange Street. [15] [16] In 1865, Union Bank received a national charter and became the National Union Bank of Boston. The bank then built its headquarters on Washington Street and State Street. [17] In March 2017, State Street Global Advisors commissioned a statue titled Fearless Girl by Kristen Visbal and temporarily placed it in front of Wall Street icon Charging Bull in Manhattan`s financial district. The statue is an advertisement for an index fund that includes gender-sensitive companies that have a higher proportion of women in their leadership positions. [58] While some saw it as encouraging women in business, some women criticized the statue as “corporate feminism” that violated their own feminist principles. [59] [60] [61] [62] In October 2017, the company paid $5 million to settle a lawsuit alleging that it paid some female and black executives less than their male and European-American counterparts. [63] State Street Bank and Trust Company was the tenth largest bank at the end of 2008.