Long-Term Debt and Preferred Stock

Note: The securities listed in the tables above (a) may not include all securities issued by State Street Corporation and/or State Street Bank and Trust Company and (b) are not bank deposits, and are not insured by the Federal Deposit Insurance Corporation or any other governmental agency, nor in the case of securities issued by State Street Corporation, are they obligations of, or guaranteed by, a bank

[1] Daily compounded SOFR rate, as described in the prospectus supplements for the relevant issuance

[2] CME Term SOFR Reference Rate published for the three-month tenor, as administered by CME Group Benchmark Administration, Ltd. (or any successor administrator thereof)

[3] Total principal amount listed incudes $8 million in principal of notes issued under Reg S or Rule 144A that were not tendered for exchange in October 2020

Resolution Related Consideration – State Street Corporation Unsecured Debt Securities

Holders of State Street Corporation unsecured debt securities are at risk of absorbing the losses if it were to enter a resolution

State Street Corporation (“SSC”) is required to maintain minimum levels of unsecured eligible long-term debt (“eligible LTD”).  This debt is intended to absorb losses if SSC enters a resolution proceeding under either (i) the U.S. Bankruptcy Code, or (ii) Title II of the Dodd-Frank Act (“Title II”). Under SSC’s preferred ”single point of entry” resolution strategy, only SSC would enter bankruptcy. SSC subsidiaries would receive capital and/or liquidity, as needed, so they could continue operating or wind down in an orderly manner (without the need for their own bankruptcy proceeding). Prior to SSC entering bankruptcy, and as required under State Street’s support agreement, most of SSC’s remaining liquid assets (other than those reserved to fund the bankruptcy proceeding) would be transferred to State Street’s intermediate funding entity. These assets would be used to recapitalize or provide liquidity to SSC subsidiaries. Certain liquidity resources to SSC – such as the support agreement line of credit – would terminate. Through the SSC bankruptcy proceeding, SSC would be transferred to a newly-organized holding company owned by a reorganization trust established for SSC‘s claimants.    

As a result, holders of SSC’s securities, including unsecured debt holders, could incur significant losses -- potentially up to the full amount of their investment - while SSC’s subsidiaries would continue to operate and their creditors would not be expected to suffer losses. 

If SSC were resolved under Title II, the FDIC would be expected to act as receiver under the “orderly liquidation authority.”  The FDIC has indicated that it would expect to use a single point of entry strategy to resolve a systemically important financial institution, though it has not formally committed to any specific approach.  The expected impact of a Title II proceeding on SSC’s security holders -- including unsecured debt holders – would be similar to the SSC bankruptcy scenario described above or may be worse than under such bankruptcy scenario or other resolution strategy. 

For more detail on these resolution processes and  related risks, please refer to the  “Recovery and Resolution Planning” portion of the Business section in SSC’s most recent Form 10-K.