STT Stock: Statement from State Street Regarding Market Misunderstandings
In response to questions received today from media and other sources,
State Street Corporation (NYSE: STT stock) confirms that, as previously
disclosed, it does not believe consolidation of its conduits is
required. State Street confirms that even if it had to consolidate its
conduits, it would remain well capitalized with ample sources of
liquidity. The company raised $2.8 billion in equity capital in early
June 2008 and does not currently have any plans to raise additional
equity.
The net asset value (NAV) of State Street Global Advisors’
money market funds has never declined below $1, including in its Short
Term Investment Fund (STIF), Government Short Term Investment Fund
(GSTIF) and the Navigator Securities Lending Trust, a registered fund
that is used in connection with collateral management for State Street
securities lending program. These funds do not have any unsecured
exposure to AIG, Lehman, Washington Mutual, Wachovia, Merrill Lynch or
Morgan Stanley.
State Street for its own account does not hold any equity positions in
unaffiliated financial institutions. The company is often reported to be
an owner of many issuers because of its position as a large custodian
and a large index fund manager.
State Street Corporation (NYSE: STT) is the world's leading provider of
financial services to institutional investors, including investment
servicing, investment management and investment research and trading.
With $15.3 trillion in assets under custody and $1.9 trillion in assets
under management at June 30, 2008, State Street operates in 26 countries
and more than 100 geographic markets worldwide. For more information,
visit State Street’s web site at www.statestreet.com.
FORWARD-LOOKING STATEMENTS
This news announcement contains forward-looking statements as defined by
United States securities laws, including statements about State Street’s
goals and expectations, the financial outlook and business environment.
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 State Street's expectations or beliefs as of
any date subsequent to the date of this release. Important factors that
may affect future results and outcomes include:
the level and volatility of interest rates, particularly in the U.S.,
Europe and the Asia/Pacific region; the performance and volatility of
securities, currency and other markets in the U.S. and
internationally; and economic conditions and monetary and other
governmental actions designed to address those conditions;
the liquidity of the U.S. and International securities markets,
particularly the markets for fixed-income securities, including
asset-backed commercial paper; and the liquidity requirements of State
Street’s customers;
State Street's ability to attract non-interest bearing deposits and
other low-cost funds; and
State Street's ability to manage systemic risks and control operating
risks.
Other important factors that could cause actual results to differ
materially from those indicated by any forward-looking statements are
set forth in State Street's 2007 Annual Report on Form 10-K and its
subsequent SEC filings, including, in particular, its Current Report on
Form 8-K dated June 2, 2008. State Street encourages investors to read
these filings, particularly the sections on Risk Factors, and its
subsequent SEC filings for additional information with respect to any
forward-looking statements and prior to making any investment decision.
The forward-looking statements contained in this press release speak
only as of the date hereof, September 18, 2008, and State Street does
not undertake efforts to revise those forward-looking statements to
reflect events after this date.
State Street Corporation Investors: Kelley
MacDonald, 617-664-2888 or Media: Hannah
Grove, 617-664-3377 or Carolyn Cichon, 617-664-8672
