BOSTON--(BUSINESS WIRE)--
State Street Corporation (NYSE:STT) today issued the following statement
in response to Trian Fund Management, L.P.
Over the past year, members of State Street’s senior management have met
with representatives of Trian on a number of occasions and have engaged
in constructive discussions about our business.
Despite the challenging operating environment over the past several
years, our business has remained resilient. State Street has continued
our track record of profitable growth and has maintained the strongest
capital position among our closest peers. With the approval of the
Federal Reserve and within the context of growing our business, we
intend to continue to return capital to our shareholders.
State Street Corporation (NYSE: STT) is one of the leading providers of
financial services to institutional investors including investment
servicing, investment management and investment research and trading.
With $22.76 trillion in assets under custody and administration and
$2.12 trillion in assets under management at June 30, 2011, State Street
operates in 26 countries and more than 100 geographic markets and
employs 29,450 worldwide. This AUM includes the assets of the SPDR Gold
Trust (approx. $58 billion as of June 30, 2011), for which State Street
Global Markets, LLC, an affiliate of State Street Global Advisors,
serves as the marketing agent.
For more information, visit State Street's web site at http://www.statestreet.com
or call +1 877/639-7788 [NEWS STT] toll-free in the United States and
Canada, or +1 678/999-4577 outside those countries.
Forward-Looking Statements
This news release contains forward-looking statements as defined by
United States securities laws, including statements relating to our
goals and expectations regarding our business, financial and capital
condition, results of operations, investment portfolio performance and
strategies, the financial and market outlook, governmental and
regulatory initiatives and developments, and the business environment.
Forward-looking statements are often, but not always, identified by such
forward-looking terminology as "plan," "expect," "look," "believe,"
"anticipate," "estimate," "seek," "may," "will," "trend," "target,” and
"goal," or similar statements or variations of such terms. These
statements are not guarantees of future performance, are inherently
uncertain, are based on current assumptions that are difficult to
predict and involve a number of risks and uncertainties. Therefore,
actual outcomes and results may differ materially from what is expressed
in those statements, and those statements should not be relied upon as
representing our expectations or beliefs as of any date subsequent to
October 16, 2011.
Important factors that may affect future results and outcomes include,
but are not limited to:
-
the manner in which the Federal Reserve and other regulators implement
the Dodd-Frank Act and other regulatory initiatives in the U.S. and
internationally, including any increases in the minimum regulatory
capital ratios applicable to us and adjustments that result in changes
to our operating model or other changes to the provision of our
services in order to comply with or respond to such regulations;
-
required regulatory capital ratios under Basel II and Basel III, in
each case as fully implemented by State Street and State Street Bank
(and in the case of Basel III, when finally adopted by the Federal
Reserve), which may result in the need for substantial additional
capital or increased levels of liquidity in the future;
-
changes in law or regulation that may adversely affect our, our
clients’ or our counterparties’ business activities and the products
or services that we sell, including additional or increased taxes or
assessments thereon, capital adequacy requirements and changes that
expose us to risks related to compliance;
-
financial market disruptions and the economic recession, whether in
the U.S. or internationally;
-
the liquidity of the U.S. and international securities markets,
particularly the markets for fixed-income securities, and the
liquidity requirements of our clients;
-
increases in the volatility of, or declines in the levels of, our net
interest revenue, changes in the composition of the assets on our
consolidated balance sheet and the possibility that we may be required
to change the manner in which we fund those assets;
-
the financial strength and continuing viability of the counterparties
with which we or our clients do business and to which we have
investment, credit or financial exposure;
-
the credit quality, credit agency ratings, and fair values of the
securities in our investment securities portfolio, a deterioration or
downgrade of which could lead to other-than-temporary impairment of
the respective securities and the recognition of an impairment loss in
our consolidated statement of income;
-
delays or difficulties in the execution of our previously announced
business operations and IT transformation program, which could lead to
changes in our estimates of the charges, expenses or savings
associated with the planned program, resulting in increased volatility
of our earnings;
-
the maintenance of credit agency ratings for our debt and depository
obligations as well as the level of credibility of credit agency
ratings;
-
the results of, and costs associated with, government investigations,
litigation, and similar claims, disputes, or proceedings;
-
the risks that acquired businesses will not be integrated
successfully, or that the integration will take longer than
anticipated, that expected synergies will not be achieved or
unexpected disynergies will be experienced, that client and deposit
retention goals will not be met, that other regulatory or operational
challenges will be experienced and that disruptions from the
transaction will harm relationships with clients, employees or
regulators;
-
the ability to complete acquisitions, divestitures and joint ventures,
including the ability to obtain regulatory approvals, the ability to
arrange financing as required and the ability to satisfy closing
conditions;
-
the performance of and demand for the products and services we offer,
including the level and timing of redemptions and withdrawals from our
collateral pools and other collective investment products;
-
the possibility that our clients will incur substantial losses in
investment pools where we act as agent, and the possibility of
significant reductions in the valuation of assets;
-
our ability to attract deposits and other low-cost, short-term funding;
-
potential changes to the competitive environment, including changes
due to the effects of consolidation, and perceptions of State Street
as a suitable service provider or counterparty;
-
the level and volatility of interest rates and the performance and
volatility of securities, credit, currency and other markets in the
U.S. and internationally;
-
our ability to measure the fair value of the investment securities on
our consolidated balance sheet;
-
our ability to control operating risks, data security breach risks,
information technology systems risks and outsourcing risks, and our
ability to protect our intellectual property rights, the possibility
of errors in the quantitative models we use to manage our business and
the possibility that our controls will prove insufficient, fail or be
circumvented;
-
adverse publicity or other reputational harm;
-
our ability to grow revenue, attract and/or retain and compensate
highly skilled people, control expenses and attract the capital
necessary to achieve our business goals and comply with regulatory
requirements;
-
the potential for new products and services to impose additional costs
on us and expose us to increased operational risk;
-
changes in accounting standards and practices; and
-
changes in tax legislation and in the interpretation of existing tax
laws by U.S. and non-U.S. tax authorities that affect the amount of
taxes due.
Other important factors that could cause actual results to differ
materially from those indicated by any forward-looking statements are
set forth in our 2010 Annual Report on Form 10-K and our subsequent SEC
filings. We encourage investors to read these filings, particularly the
sections on risk factors, for additional information with respect to any
forward-looking statements and prior to making any investment decision.
The forward-looking statements contained in this news release speak only
as of the date hereof, October 16, 2011, and we do not undertake efforts
to revise those forward-looking statements to reflect events after that
date.
State Street Corporation
Investors:
Kelley MacDonald,
+1-617-664-3477
or
Media:
Hannah Grove, +1-617-664-3377
Source: State Street Corporation