"State Street quarterly profit rises 2.3 percent on gain from sale" by Bloomberg News | July 17, 2012
State Street Corp., the third-largest custody bank, said second-quarter profit rose 2.3 percent after the firm sold investment securities for a gain.
Net income on an operating basis rose to $494 million....
Actually, it looks like an $8 million drop, but....
Will the LYING NEVER END?
And they are doing EVEN BETTER this year!
Custody banks have struggled to increase profits because of record low interest rates and weak global equity markets.
Yeah, the poor babies and their profits. Equity seems to be doing just fine, and is State Street also getting shorted on their swaps like the states?
State Street chief executive Joseph Hooley has cut more than 2,200 jobs in the past two years to contain expenses and raised the company’s dividend in April to boost shareholder returns....
And they are getting tax breaks from the state of Massachusetts and city of Boston!
Low interest rates hurt custody banks by trimming the return on its own investments and lending. State Street has also waived some fees on money-market funds to keep client returns above zero....
Yeah, they are really hurting.
State Street’s operating profit excludes money earned from the sale or maturing of bonds whose value was written down in May 2009, which the company records as “discount accretion” within net interest income.
Is that how they finagle a huge tax check from Uncle Sam?
Custody banks keep records, track performance, and lend securities for institutional investors including mutual funds, pension funds, and hedge funds.
Yup, THEY STOLE FROM IT and NOW YOU have to GIVE BACK BENEFITS!
State Street also manages investments for individuals and institutions....
--more--"
Yup, they were in on that whole mortgage-backed securities mess, too.
"State Street to buy Goldman Sachs unit for $550m" by Chris Reidy | Globe Staff, July 17, 2012
State Street Corp., a financial services company headquartered in Boston, said Tuesday that it has agreed to pay $550 million to buy Goldman Sachs Administration Services as it looks to become the leading global administrator of hedge funds....
--more--"
