About State Street
State Street Corporation provides a broad range of financial products and services to institutional investors worldwide. The company’s clients - asset managers and owners, insurance companies, official institutions, and central banks - rely on it to deliver solutions that support their goals across the investment life cycle. Through the company’s subsidiaries, including its principal banking subsidiary, State Street Bank and Trust Company, referred to as State Street Bank, the company operates in more than 100 geographic markets worldwide, including the United States, Canada, Latin America, Europe, the Middle East and Asia. The company provides a broad range of financial products and services to institutional investors worldwide. The company conducts its business primarily through State Street Bank. State Street Bank's current charter was authorized by a special Act of the Massachusetts Legislature in 1891. State Street Bank operates as a specialized bank, referred to as a trust or custody bank, that services and manages assets on behalf of its institutional clients. The company provides additional disclosures required by applicable bank regulatory standards, including supplemental qualitative and quantitative information with respect to regulatory capital (including market risk associated with its trading activities), the LCR and the NSFR, summary results of annual State Street-run stress tests that it conducts under the Dodd-Frank Act, and resolution plan disclosures required under the Dodd-Frank Act. Lines Of Business The company’s operations are organized into two lines of business: Investment Servicing and Investment Management, which are defined based on products and services provided. Investment Servicing Investment Servicing line of business provides a range of services to the company’s clients. Through State Street Investment Services, State Street Global Markets, State Street Alpha, and State Street Digital, the company provides investment services for institutional clients, including mutual funds, collective investment funds and other investment pools, corporate and public retirement plans, insurance companies, investment managers, foundations and endowments worldwide. The company’s financial services and products allow its large institutional investor clients to execute financial transactions on a daily basis in markets across the globe. As most institutional investors cannot economically or efficiently build their own technology and operational processes necessary to facilitate all of their global securities settlement needs, the company’s primary role as a global trust and custody bank is to aid its clients to efficiently perform services associated with the clearing, settlement and execution of securities transactions and related payments. Products under the Investment Servicing line of business include: back office products, such as custody, accounting, regulatory reporting, investor services, performance and analytics; middle office products, such as investment book of record, transaction management, loans, cash, derivatives and collateral services, record keeping, client reporting and investment analytics; investment manager and alternative investment manager operations outsourcing; performance, risk and compliance analytics; financial data management to support institutional investors; foreign exchange, brokerage and other trading services; securities finance, including prime services products; and deposit and short-term investment facilities. The company provides some or all of the Investment Servicing integrated products and services to clients in the United States and in many other markets, including, among others, Australia, Brazil, Canada, Cayman Islands, Germany, Hong Kong, Ireland, Italy, Japan, Luxembourg, South Korea and the United Kingdom. Included within the company’s Investment Servicing line of business is the Charles River Investment Management Solution, a technology offering which is designed to automate and simplify the institutional investment process across asset classes, from portfolio management and risk analytics through trading and post-trade settlement, with integrated compliance and managed data throughout. With the acquisition of Charles River Development (CRD) in 2018, the company took the first step in building its front-to-back platform, State Street Alpha. In 2021, the company further expanded State Street Alpha's technology offering with the acquisition of Mercatus, Inc., enabling the launch of Alpha for Private Markets. In 2023, the company enhanced State Street Alpha with the release of two notable upgrades to its fixed income management module. The company’s State Street Alpha platform combines portfolio management, trading and execution, analytics and compliance tools, and advanced data aggregation and integration with other industry platforms and providers. State Street Digital focuses on the development of services related to digital assets and related technologies, such as blockchain, tokenization, cryptocurrency, and central bank digital currency, including the evolution of a new integrated business and digital operating model designed to support primarily its institutional clients' digital investment cycle. Investment Management Investment Management line of business provides a broad range of investment management strategies and products for the company’s clients through State Street Global Advisors. The company’s investment management strategies and products for equity, fixed income and cash assets, including core and enhanced indexing, multi-asset strategies, active quantitative and fundamental active capabilities and alternative investment strategies, span the risk/reward spectrum of these investment products. The company’s AUM is primarily weighted to indexed strategies. In addition, the company provides a breadth of services and solutions, including ESG investing, defined benefit and defined contribution products, and Global Fiduciary Solutions. State Street Global Advisors is also a provider of ETFs, including the SPDR ETF brand. Investment Securities As of December 31, 2023, the company’s investment securities included U.S. treasury and federal agencies, such as direct obligations and mortgage-backed securities; non-U.S. debt securities, such as mortgage-backed securities, asset-backed securities, non-U.S. sovereign, supranational and non-U.S. agency, and other securities; asset-backed securities, such as student loans, collateralized loan obligations, non-agency CMBS and RMBS, and other securities; state and political subdivisions; and other U.S. debt securities. Loans As of December 31, 2023, the company’s loans were domestic loans, such as commercial and financial loans (fund finance, leveraged loans, overdrafts, collateralized loan obligations in loan form, and other loans), and commercial real estate loans; and foreign loans, such as commercial and financial loans (fund finance, leveraged loans, overdrafts, and collateralized loan obligations in loan form). Supervision and Regulation The company is registered with the Federal Reserve as a bank holding company pursuant to the Bank Holding Company Act of 1956. Some aspects of the company’s public disclosure, corporate governance principles and internal control systems are subject to the Sarbanes-Oxley Act of 2002 (SOX), the Dodd-Frank Act and regulations and rules of the SEC and the New York Stock Exchange. The Federal Reserve has rules on TLAC, LTD and clean holding company requirements for the U.S. domiciled G-SIBs, such as the company. The company is subject to the Volcker Rule and implementing regulations. Under the Federal Reserve's enhanced prudential standards regulation under the Dodd-Frank Act, as amended by the EGRRCPA, the company is required to comply with various liquidity-related risk management standards and maintain a liquidity buffer of unencumbered highly liquid assets based on the results of internal liquidity stress testing. Under Section 165(d) of the Dodd-Frank Act, the company is required to submit a resolution plan on a biennial basis jointly to the Federal Reserve and the FDIC (as used in this ‘Recovery and Resolution Planning’ section, the Agencies). State Street Bank has registered provisionally with the CFTC as a swap dealer. As a registered swap dealer, State Street Bank is subject to significant regulatory obligations regarding its swap activity and the supervision, examination and enforcement powers of the CFTC and other regulators. The CFTC has granted State Street Bank a limited-purpose swap dealer designation. The Federal Reserve is the primary federal banking agency responsible for regulating the company and its subsidiaries, including State Street Bank, with respect to both its U.S. and non-U.S. operations. State Street Bank is a member of the Federal Reserve System, its deposits are insured by the Federal Deposit Insurance Corporation (FDIC) and it is subject to applicable federal and state banking laws and to supervision and examination by the Federal Reserve, as well as by the Massachusetts Commissioner of Banks, the FDIC, and the regulatory authorities of those states and countries in which State Street Bank operates a branch. Derivatives, securities borrowing and securities lending transactions between State Street Bank and its affiliates became subject to these restrictions pursuant to the Dodd-Frank Act. The company’s other subsidiary trust companies are subject to supervision and examination by the OCC, the Federal Reserve or by the appropriate state banking regulatory authorities of the states in which they are organized and operate. The company’s continental European banking subsidiary, State Street Bank International GmbH is a significant entity in accordance with European banking regulations and accordingly is supervised directly by the European Central Bank. State Street Bank International GmbH operates in several countries, including Germany, Luxembourg, Italy, France and Switzerland. In the United Kingdom, the London branch of State Street Bank is dually regulated by the Prudential Regulatory Authority and the Financial Conduct Authority, in Ireland the company’s depositary and fund administration companies are regulated by the Central Bank of Ireland and in Canada its trust company is regulated by the Office of the Superintendent of Financial Institutions. The company’s business related to investment management and trusteeship of collective trust funds and separate accounts offered to employee benefit plans is subject to the Employee Retirement Income Security Act (ERISA), and is regulated by the U.S. DOL. The majority of the company’s non-U.S. asset servicing operations are conducted pursuant to the Federal Reserve's Regulation K through State Street Bank’s Edge Act subsidiary or through international branches of State Street Bank. In addition to the company’s non-U.S. operations conducted pursuant to Regulation K, the company also makes new investments abroad directly (through the company or through its non-banking subsidiaries) pursuant to the Federal Reserve's Regulation Y, or through international bank branch expansion, neither of which is subject to the investment limitations applicable to Edge Act subsidiaries. The company and certain of its subsidiaries are subject to the Bank Secrecy Act of 1970, as amended by the USA PATRIOT Act of 2001, and related regulations, which contain anti-money laundering (AML) and financial transparency provisions and which require implementation of an AML compliance program, including processes for verifying client identification and monitoring client transactions and detecting and reporting suspicious activities. For larger institutions, such as State Street Bank, assessments are determined based on regulatory ratings and forward-looking financial measures to calculate the assessment rate, which is subject to adjustments by the FDIC, and the assessment base. The FDIC Improvement Act of 1991 requires the appropriate federal banking regulator to take ‘prompt corrective action’ with respect to a depository institution if that institution does not meet certain capital adequacy standards, including minimum capital ratios. While these regulations apply only to banks, such as State Street Bank, the Federal Reserve is authorized to take appropriate action against a parent bank holding company, such as the company, based on the under-capitalized status of any banking subsidiary. Under Federal Reserve regulations, a bank holding company, such as the company is required to act as a source of financial and managerial strength to its banking subsidiaries. This requirement was added to the Federal Deposit Insurance Act by the Dodd-Frank Act. History State Street Corporation was founded in 1792. The company was incorporated in 1969 under the laws of the Commonwealth of Massachusetts.
