State Street Corporation
April 10, 2013
State Street Corporation is a financial services holding company based in the United States. State Street was founded in 1792 and is located in the Financial District of Boston, Massachusetts. The company provides a full range of products and services for large pools of investment assets. With $18.79 trillion in assets under custody and $1.91 trillion in assets under management, their primary clients are institutional investors (State Street, 2013). STT operates in 25 countries and in more than 100 markets worldwide. State Street manages for some of the world's largest money managers and asset owners with foreign exchange services and transition management services, and quantitative research and technology-driven tools. State Street is a financial holding company organized under the laws of the Commonwealth of Massachusetts and is one of the leading specialists in serving sophisticated investors worldwide. The Federal Reserve System is the primary federal banking agency responsible for regulating State Street and its subsidiaries, including State Street Bank and Trust Company. State Street’s U.S. banking subsidiaries are also subject to regulation by the Massachusetts Commissioner of Banks, the Federal Deposit Insurance Company and the Comptroller of the Currency. The company is a global company and is subject to the regulatory authorities of those countries in which a branch or subsidiary of State Street is located or conducts business (Governance Guidelines, 2013) State Street has deep roots in the commercial history of Boston, going back to the days when the city was a busy shipping port and the primary business for the new nation. In the last years of the 1700s, a group of prominent Bostonians gathered together to create a new bank, which would be Boston’s third bank. John Hancock, Massachusett’s first governor, signed the bank’s charter on June 25, 1792. The bank was initially named Union Bank and was located at the corner of State and Exchange Streets. State Street was a center of both commerce and politics. The first public reading of the Declaration of Independence took place there. State Street was also known as the “Great Street to the Sea”, and the economic growth of the new bank was closely tied to Boston’s flourishing shipping industry (Pederson, 2004). In 1865 the directors of State Street applied for and received a National Charter. The bank would be renamed the National Union Bank of Boston. In July of 1891, National Union had new competitor on their street called State Street Deposit & Trust Company, opening with a capital of $300,000. State Street Trust grew steadily in the early years, and deposits increased from $2 million to more than $40 million. In 1924 Massachusetts Investors Trust chose State Street Trust as custodian of the country’s first mutual fund. One year later, National Union Bank merged with State Street and deposits grew to over $57 million. In the mid-1900s, State Street’s growth was fueled by mergers. The company merged with the Second National Bank in 1955 and the Rockland-Atlas National Bank in 1961. In 1963, ground was broken for the State Street Bank building, which was the first high-rise building in Boston. In 1964, State Street International opened in New York and, six years later, at the dawn of the 1970s, State Street took its first step into the global market, with the opening of an office in Munich (Pederson, 2004). William Edgerly took control in 1975 and started coming up with a new strategy to turn the company around. He brought in new managers to help thrust the bank into a new direction it had to go in order to stay competitive in the New England banking community. At that time, the bank had four major lines of business: commercial banking, financial services, investment management, and regional banking. Edgerly decided State Street should move away from its traditional commercial role and shut down its branches to...
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