State Street Corporation

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State Street Corporation
FormerlyState Street Boston Financial Corporation (1960–1977)
State Street Boston Corporation (1977–1997)
TypePublic company
ISINUS8574771031 Edit this on Wikidata
IndustryFinancial services
FoundedJune 25, 1792; 231 years ago (1792-06-25) (Union Bank)
HeadquartersOne Congress Street
Boston, Massachusetts, U.S.
Key people
Joseph L. Hooley
Ron O'Hanley
(President and CEO)
RevenueIncrease US$12.15 billion (2022)
Increase US$2.66 billion (2022)
AUMIncrease US$3.7trillion (September 30, 2023)[1]
Total assetsIncrease US$40.0 billion (September 30, 2023)[1]
Total equityDecrease US$25.19 billion (2022)
Number of employees
42,226 (2022)
Footnotes / references

State Street Corporation (stylized in all caps), is a global[3] financial services and bank holding company headquartered at One Congress Street in Boston with operations worldwide. It is the second-oldest continually operating United States bank; its predecessor, Union Bank, was founded in 1792. State Street is ranked 14th on the list of largest banks in the United States by assets. It is one of the largest asset management companies in the world with US$3.7 trillion under management and US$40.0 trillion under custody and administration in 2023.[1] It is the largest custodian bank in the world, providing securities services[4][5] and it is considered a systemically important bank by the Financial Stability Board.[6][7] Along with BlackRock and Vanguard, State Street is considered to be one of the Big Three index fund managers that dominate corporate America.[8][9]

The company is ranked 316th on the Fortune 500 as of 2022.[10] The company is on the list of the banks that are too big to fail published by the Financial Stability Board.[11] It is rated by Visual Capitalist as the third U.S. bank by uninsured deposits, with 91.2% of deposits being uninsured[12]

The company is named after State Street in Boston, which was known as the "Great Street to the Sea" in the 18th century as Boston became a flourishing maritime capital. The company's logo formerly included a clipper ship to reflect the maritime industry in Boston during this time.

Current operations[edit]

Investment servicing: State Street Global Services[edit]

State Street Bank and Trust Company, also known as Global Services, is the securities services division of State Street that provides asset owners and managers with securities services (e.g. custody, corporate actions), fund accounting (pricing and valuation), and administration (financial reporting, tax, compliance, and legal) services. Global Services handles assets from many classes, including stocks, derivatives, exchange-traded funds, fixed income assets, private equity, and real estate. State Street administers 40% of the assets under administration in the US mutual fund market. Global Services also provides outsourcing for operations activities and handles US$10.2 trillion of middle-office assets.[2]

Investment Management: State Street Global Advisors[edit]

State Street Global Advisors is the investment management division of State Street that provides asset management, research, and advisory services to corporations, mutual funds, insurance companies, and other institutional investors. Global Advisors develops both passive management and active management strategies using both quantitative and fundamental approaches.[2]

1993 SPDR innovation[edit]

In 1993,[13][14] the company created the SPDR S&P 500 Trust ETF, the first exchange-traded fund (ETF), and is now one of the largest ETF providers worldwide.[15]

Trading on SPDR began January 29, 1993.[16]

State Street Global Markets[edit]

Global Markets is State Street's securities business that offers research, trading, and securities lending services for foreign exchange, equities, fixed income, and derivatives. To avoid a conflict of interest, the company does not run proprietary trading books. Global Markets maintains trading desks in Boston, Hong Kong, London, Singapore, Sydney, Toronto, and Tokyo.[2]


The company traces its roots to Union Bank, which received a charter in 1792 from Massachusetts Governor John Hancock. It was the third bank to be chartered in Boston and its office was at the corner of State and Exchange Streets.[17][18] In 1865, Union Bank received a national charter and became the National Union Bank of Boston. The bank later built a headquarters at Washington and State streets.[19]

State Street Deposit & Trust Co opened in July 1891. The name was shortened to State Street Trust Company in 1897. It became the custodian of the first U.S. mutual fund in 1924, the Massachusetts Investors Trust (now MFS Investment Management).[18]

20th century[edit]

State Street and National Union merged in October 1925.[17] The merged bank took the State Street name, but National Union was the nominal survivor, and it operated under National Union's charter, thus giving the current entity its rank among the oldest banks in the United States.

The company merged with Second National Bank in 1955 and with the Rockland-Atlas National Bank in 1961.[20][21]

In 1966, the company completed construction of the State Street Bank Building, a new headquarters building, the first high-rise office tower in downtown Boston.

In 1972, the company opened its first international office in Munich.

In 1973, as a 50/50 joint venture with DST Systems, the company formed Boston Financial Data Services, a provider of shareholder record-keeping, intermediary and investor services, and regulatory compliance. More than 100 top staff from IBM were hired by State Street as it set about implementing IBM mainframe computer systems.

In 1975, William Edgerly became president and chief executive officer of the bank and shifted the company's strategy from commercial banking to investments and securities processing.[18]

During the 1980s and 1990s, the company opened offices in Montreal, Toronto, Dublin, London, Paris, Dubai, Sydney, Wellington, Hong Kong, and Tokyo.[18]

By 1992, most of State Street's revenue came from fees for holding securities, settling trades, keeping records, and performing accounting.[18] In 1994, the company formed State Street Global Advisors, a global asset management business.

In 1995, State Street acquired Investors Fiduciary Trust of Kansas City for $162 million from DST Systems and Kemper Financial Services.[22][23] In 1996, Bank of New York acquired the unit investment trust servicing business of Investors Fiduciary Trust Co., Kansas City, Mo.[24]

In 1997, State Street setup its office in Singapore.[25]

In 1999, State Street sold its retail and commercial banking businesses to Citizens Financial Group.[26]

21st century[edit]

In 1990, State Street Bank Luxembourg was founded, and as of 2018 is the largest player in the country's fund industry by assets.[27]

In 2003, the company acquired the securities services division of Deutsche Bank for $1.5 billion.[28] The company also sold its corporate trust business to U.S. Bancorp for $725 million.[29] Also in 2003, State Street sold its private asset management business to U.S. Trust.[30]

In July 2007, the company acquired Investors Bank & Trust for $4.5 billion.[31]

In October 2008, the United States Department of the Treasury invested $2 billion in the company as part of the Troubled Asset Relief Program and in July 2009, the company became the first major financial firm to repay the Treasury.[32]

In 2010, the company acquired Mourant International Finance Administration.[33] It also acquired the securities services group of Intesa Sanpaolo for $1.87 billion.[34] In December 2010, the company announced that it would be retrenching 5% of its workforce and effectively reducing the hourly wages of remaining employees by 10% via increased standard work hours.[35]

In November 2011, the company was named as amongst the world's 29 systemic banks.[36]

In 2012, the company acquired Goldman Sachs Administration Services, a hedge fund administrator, for $550 million.[37]

In November 2014, the company sold SSARIS Advisors, its hedge fund unit, to senior management.[38]

In 2016, State Street launched a program called Beacon, focused on cutting costs and improving reporting technology.[39] Their main focus was to shrink their US workforce in order to bolster profits in excess of $2.5 billion (2018 figures).[citation needed] Also in 2016, the company acquired the asset management business of General Electric.[40]

In 2017, the company announced that Jay Hooley, the chief executive officer of the company, would retire, to be succeeded by Ronald P. O’Hanley, then vice chairman, president and CEO of State Street Global Advisors.[41]

In 2018, State Street completed its acquisition of Charles River Development, a Burlington, Massachusetts provider of investment management software.[42] The deal closed October 1, 2018, at a cost of approximately $2.6 billion that will be financed by the suspension of share repurchases and the issuing of common and preferred equity.[43] News of the acquisition led to a drop in State Street shares of nearly 10% with share prices remaining flat since the purchase.[44]

In January 2019, State Street announced that it planned to lay off 1,500 employees, increasing the number to 2,300 in July.[45] During that period, the company shifted their workforce from the United States to countries like China, India and Poland and operated under a hiring freeze.[45] The increased overseas hiring resulted in a net gain of employment of over 3,000.[46][47]

In September 2021, State Street agreed to buy Brown Brothers Harriman & Co.'s investor-services business for $3.5 billion in cash.[48] Following continued scrutiny in receiving regulatory approvals, the deal was mutually agreed to be dropped in November 2022.[49]


Currency trade fraud[edit]

In 2009, California alleged on behalf of its pension funds CalPERS and CalSTRS that State Street had committed fraud on currency trades handled by the custodian bank.[50][51]

Non-disclosure of short position[edit]

On February 28, 2012, State Street Global Advisors entered into a consent order with the Massachusetts Securities Division. The Division was investigating the firm's role as the investment manager of a $1.65 billion (USD) hybrid collateralized debt obligation. The investigation resulted in a fine of $5 million (USD) for the non-disclosure of certain initial investors taking a short position on portions of the CDO.[52]

Shareholder complaints[edit]

During the May 2012 annual shareholders meeting, chairman and chief executive Jay Hooley was shouted down on numerous occasions by protesters in relation to the outsourcing and other grievances.[53]

Undisclosed commissions[edit]

On January 18, 2017, State Street agreed to pay $64.6 million to resolve U.S. investigations into what prosecutors said was a scheme to defraud six clients through secret commissions on billions of dollars of trades.[54][55]

Fearless Girl statue[edit]

In March 2017, State Street Global Advisors commissioned a statue called Fearless Girl by Kristen Visbal and placed it temporarily in the Financial District, Manhattan, in front of the Wall Street icon Charging Bull. The statue is an advertisement for an index fund which comprises gender diverse companies that have a higher percentage of women among their senior leadership.[56] While some have seen it as an encouragement of women in business, some women criticized the statue as "corporate feminism" that violated their own feminist principles.[57][58][59][60] In October 2017, the company paid $5 million to settle a lawsuit charging that it had paid certain female and black executives less than their male and European-American peers.[61]

Climate change[edit]

State Street announced in January 2020 that State Street Global Advisors will vote against directors of companies in major stock indices that do not meet targets for environmental, social, and governance changes.[62] According to Morningstar Proxy Data, State Street, "supported a majority of the climate-related disclosure requests that shareholders placed on the ballot," during the 2020 proxy season.[63]


Financials in billions of US$[64] [65][66][67][68]
Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Revenue 3.577 3.827 4.396 4.734 4.951 5.473 6.311 8.336 10.69 8.640 8.953 9.594 9.649 9.884 10.30 10.36 10.21 11.17 11.98
Net income 0.595 0.628 1.015 0.722 0.798 0.838 1.106 1.261 1.811 −1.881 1.556 1.920 2.061 2.136 2.037 1.980 2.143 2.177 2.599
Assets 69.30 69.85 85.79 87.53 94.04 97.97 107.4 142.5 173.6 157.9 160.5 216.8 222.6 243.3 274.1 245.2 242.7 238.4 244.6
Assets under management 420 667 800 1,000 1,150 1,320 1,610 1,705 1,650 1,830 2,000 2,159 2,190 2,215 2,230 2,245 2,468 2,782 2,511
Headcount thousands 17.6 19.75 19.5 19.85 19.67 20.97 21.7 27.11 28.48 27.31 28.67 29.74 29.65 29.43 29.97 32.36 33.78 36.64 40.14

See also[edit]


  1. ^ a b c "State Street CEO O'Hanley to take additional role as bank's president". Reuters. 30 October 2023.
  2. ^ a b c d "State Street Corporation 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 17, 2022. pp. 68, 74, 126, 128.
  3. ^ "State Street on the Forbes Global 2000 List". Forbes. State Street ... Forbes Global 2000 List. ... State Street Corp. financial ... America's Largest Public Companies 2018. #252
  4. ^ "State Street Reports Fourth-Quarter and Full-Year 2020 Financial Results". Business Wire. 19 January 2021. Retrieved January 19, 2021.
  5. ^ "State Street Corporation 10-K". SEC. February 21, 2019. Retrieved February 28, 2019.
  6. ^ "2021 List of Global Systemically Important Banks (G-SIBs)" (PDF). Financial Stability Board. November 23, 2021. p. 3.
  7. ^ Berry, Jared; Khan, Akber; Rezende, Marcelo (January 31, 2020). "How Do U.S. Global Systemically Important Banks Lower Their Capital Surcharges?". Federal Reserve.
  8. ^ Bebchuk, Lucian; Hirst, Scott (2019). "Index Funds and the Future of Corporate Governance: Theory, Evidence, and Policy". Columbia Law Review. 119 (8): 2029–2146. SSRN 3282794.
  9. ^ McLaughlin, David; Massa, Annie (January 9, 2020). "The Hidden Dangers of the Great Index Fund Takeover". Bloomberg Businessweek. Retrieved June 7, 2021.
  10. ^ "State Street Corp". Fortune. Retrieved June 4, 2022.
  11. ^ "2015 update of list of global systemically important banks (G-SIBs)" (PDF). Financial Stability Board. November 3, 2015.
  12. ^ Neufeld, Dorothy; Lam, Sabrina (April 5, 2023). "MONEY Ranked: The U.S. Banks With the Most Uninsured Deposits". Visual Capitalist. Retrieved April 20, 2023.
  13. ^ Jeff Sommer (February 2, 2018). "The Stock Market Works by Day, but It Loves the Night". The New York Times.
  14. ^ "State Street Announces Name and Ticker Changes for Six SPDR ETFs". The New York Times. State Street created .. 1993 SPDR S&P 500 .. SPY
  15. ^ "The First ETF Turns 20: Innovation That Leveled the Playing Field for All Investors Reaches New Milestone" (Press release). Business Wire. January 29, 2013.
  16. ^ Wismer, David. "Happy Belated Birthday, Spider! (SPY Celebrates 20th Anniversary Amidst ETF Boom)". Forbes. Retrieved 2021-10-07.
  17. ^ a b Badenhausen, Kurt (December 18, 2012). "America's Best And Worst Banks". Forbes.
  18. ^ a b c d e FundingUniverse, 2014, History of State Street Corporation, retrieved 22 June 2014
  19. ^ "Clipping from Boston Post -". Retrieved 2018-05-22.
  20. ^ "History of State Street Corporation". FundingUniverse. Retrieved 2018-05-22.
  21. ^ "Two Big Banks in Boston Slate Union Into 2d Largest in Area". The New York Times. December 21, 1960.
  22. ^ "Semi-Annual Report". December 31, 2000. State Street Kansas City ("SSKC") (formerly Investors Fiduciary Trust Company) and State Street Boston ("SSB")
  23. ^ "State Street Celebrates 10th Anniversary of its Kansas City Operations" (Press release). Business Wire. January 31, 2005.
  24. ^ "Company briefs". The New York Times. February 28, 1996.
  25. ^ "State Street in Singapore". State Street Corporation. Retrieved 26 May 2021.
  26. ^ "Company News; Citizens Is Buying State Street's Retail Bank Business". The New York Times. Reuters. 1999-05-07. ISSN 0362-4331. Retrieved 2019-12-11.
  27. ^ ""We represent roughly 25% of the fund industry"". The Business Report. January 22, 2018.
  28. ^ "State Street will become largest securities services firm". USA Today. November 5, 2002.
  29. ^ "U.S. Bank to Acquire State Street's Corporate Trust Business" (Press release). Business Wire. August 13, 2002.
  30. ^ "U.S. Trust Completes Acquisition of State Street's Private Asset Management Business" (Press release). Business Wire. November 3, 2003.
  31. ^ "State Street Completes Acquisition of Investors Financial Services Corp" (Press release). Business Wire. July 2, 2007.
  32. ^ "State Street is first to pay back all TARP funds". Bloomberg News. July 11, 2009.
  33. ^ Sullivan, Ruth (December 6, 2009). "State Street grows with Mourant purchase". Financial Times. Archived from the original on 2022-12-10.
  34. ^ Herbst-Bayliss, Svea (December 22, 2009). "State Street buys Intesa securities services unit". Reuters.
  35. ^ Van Sack, Jessica (December 12, 2010). "Days to get longer at State Street". The Boston Herald.
  36. ^ Smith, Geoffrey T. (November 5, 2011). "Bucket List: G20 Panel Names Top Global Banks". The Wall Street Journal.
  37. ^ "State Street to Acquire Goldman Sachs Administration Services" (Press release). Business Wire. July 17, 2012.
  38. ^ "State Street Shrinks Hedge Fund Operations With Sale Of SSARIS Advisors To Management". Forbes. November 24, 2014.
  39. ^ Stein, Charles; Levingston, Ivan (September 20, 2017). "State Street Embraces Artificial Intelligence". Bloomberg L.P.
  40. ^ "State Street Completes Acquisition of GE Asset Management" (Press release). Business Wire. July 1, 2016.
  41. ^ Reosti, John (November 7, 2017). "Succession shoe drops at another big trust bank". American Banker.
  42. ^ "State Street Completes Acquisition of Charles River Development | State Street Newsroom". Archived from the original on 2019-10-07. Retrieved 2018-10-23.
  43. ^ Stein, Charles; Maranz, Felice (2018-07-20). "State Street slides on $2.6 billion Charles River Development acquisition". The Boston Globe. Bloomberg News. Retrieved 2018-07-20.
  44. ^ Team, Trefis. "Why The Pessimism Surrounding State Street's Acquisition Of Charles River Is Overblown". Forbes. Archived from the original on 2019-04-28. Retrieved 2018-12-19.
  45. ^ a b Ryan, Greg (13 September 2019). "State Street lays off 250 IT workers in latest job cuts". Boston Business Journal. Retrieved 2019-10-31.
  46. ^ "State Street to lay off 1,500 in turn toward automation". January 18, 2019.
  47. ^ "State Street lays off 1,500 employees". Boston Herald. January 18, 2019.
  48. ^ Massa, Annie (September 7, 2021). "State Street to Buy Brown Brothers' Unit for $3.5 Billion". Bloomberg News.
  49. ^ Chesto, Don; Gerber, Dana (November 30, 2022). "State Street pulls plug on $3.5 billion Brown Brothers Harriman acquisition". The Boston Globe.
  50. ^ Dash, Eric (October 20, 2009). "California Sues State Street Bank for Fraud". The New York Times.(subscription required)
  51. ^ "California sues State Street over pension funds". Reuters. October 20, 2009.
  52. ^ "Consent Order" (PDF). Massachusetts Secretary of the Commonwealth. February 28, 2012.
  53. ^ "UPDATE 2-Protester shouts disrupt State Street annual meeting". Reuters. May 16, 2017.
  54. ^ "State Street Corporation Agrees to Pay More than $64 Million to Resolve Fraud Charges" (Press release). United States Department of Justice. January 18, 2017.
  55. ^ Raymond, Nate (January 18, 2017). "State Street to pay $64.6 million to resolve U.S. fraud probes". Reuters.
  56. ^ Stein, Lindsay (May 3, 2017). "EIGHT THINGS YOU DON'T KNOW ABOUT 'FEARLESS GIRL'". Advertising Age.
  57. ^ Belafonte, Gina (March 16, 2017). "The False Feminism of 'Fearless Girl'". The New York Times.(subscription required)
  59. ^ Sheffler, Cara Marsh (March 14, 2017). "The 'Fearless Girl' statue sums up what's wrong with feminism today". The Guardian.
  60. ^ Bovy, Phoebe Maltz (March 14, 2017). "'Fearless Girl' Statue Not The Feminist Icon We Need". The Forward.
  61. ^ Chesto, Jon (October 5, 2017). "Firm behind 'Fearless Girl' statue to pay $5m over equal pay for women, minorities". The Boston Globe.
  62. ^ "How the Coronavirus Could Hurt Apple and Starbucks". The New York Times. January 29, 2020. Retrieved 2020-10-22.
  63. ^ Cook, Jackie (September 28, 2020). "How Big Fund Families Voted on Climate Change: 2020 Edition". Retrieved 2020-10-22.
  64. ^ "Annual Report 2016 (SEC Filing Form 10-K)". State Street Corporation. 2017-02-17. Retrieved 2017-11-09.
  65. ^ "Annual Report 2015 (SEC Filing Form 10-K)". State Street Corporation. 2016-02-19. Retrieved 2016-04-21.
  66. ^ "Annual Report (Form 10-K) - 2009" (PDF). State Street Corporation. Retrieved 2015-12-09.
  67. ^ "Annual Report (Form 10-K) - 2004" (PDF). State Street Corporation. Retrieved 2015-12-05.
  68. ^ "Annual Report 2017 (SEC Filing Form 10-K)". State Street Corporation. 2018-02-26. Retrieved 2018-03-17.

External links[edit]

Archives and records[edit]