State Street Corporation
State Street Corporation (stylized in all caps), is a global[2] financial services and bank holding company headquartered at One Congress Street in Boston with operations worldwide. It is the second-oldest continually operating United States bank; its predecessor, Union Bank, was founded in 1792. State Street is ranked 14th on the list of largest banks in the United States by assets. It is one of the largest asset management companies in the world with US$3.7 trillion under management and US$40.0 trillion under custody and administration in 2023.[3] It is the largest custodian bank in the world, providing securities services[4][5] and it is considered a systemically important bank by the Financial Stability Board.[6][7] Along with BlackRock and Vanguard, State Street is considered to be one of the Big Three index fund managers that dominate corporate America.[8][9]
Formerly
State Street Boston Financial Corporation (1960–1977)
State Street Boston Corporation (1977–1997)
US8574771031 
June 25, 1792 (Union Bank)
One Congress Street
Boston, Massachusetts, U.S.
US$11.95 billion (2023)
US$1.944 billion (2023)
US$4.128 trillion (2023)
US$297.3 billion (2023)
US$23.80 billion (2023)
c. 46,000 (2023)
The company is ranked 316th on the Fortune 500 as of 2022.[10] The company is on the list of the banks that are too big to fail published by the Financial Stability Board.[11] It is rated by Visual Capitalist as the third U.S. bank by uninsured deposits, with 91.2% of deposits being uninsured.[12]
The company is named after State Street in Boston, which was known as the "Great Street to the Sea" in the 18th century as Boston became a flourishing maritime capital. The company's logo formerly included a clipper ship to reflect the maritime industry in Boston during this time.
Current operations[edit]
Investment servicing: State Street Global Services[edit]
State Street Bank and Trust Company, also known as Global Services, is the securities services division of State Street that provides asset owners and managers with securities services (e.g. custody, corporate actions), fund accounting (pricing and valuation), and administration (financial reporting, tax, compliance, and legal) services. Global Services handles assets from many classes, including stocks, derivatives, exchange-traded funds, fixed income assets, private equity, and real estate. Global Services also provides outsourcing for operations activities and handles US$10.2 trillion of middle-office assets.[1]
Investment Management: State Street Global Advisors[edit]
State Street Global Advisors is the investment management division of State Street that provides asset management, research, and advisory services to corporations, mutual funds, insurance companies, and other institutional investors. Global Advisors develops both passive management and active management strategies using both quantitative and fundamental approaches.[1]
Controversies[edit]
Non-disclosure of short position[edit]
On February 28, 2012, State Street Global Advisors entered into a consent order with the Massachusetts Securities Division. The Division was investigating the firm's role as the investment manager of a $1.65 billion (USD) hybrid collateralized debt obligation. The investigation resulted in a fine of $5 million (USD) for the non-disclosure of certain initial investors taking a short position on portions of the CDO.[52]
Fearless Girl statue[edit]
In March 2017, State Street Global Advisors commissioned a statue called Fearless Girl by Kristen Visbal and placed it temporarily in the Financial District, Manhattan, in front of the Wall Street icon Charging Bull. The statue is an advertisement for an index fund which comprises gender diverse companies that have a higher percentage of women among their senior leadership.[56] While some have seen it as an encouragement of women in business, some women criticized the statue as "corporate feminism" that violated their own feminist principles.[57][58][59][60] In October 2017, the company paid $5 million to settle a lawsuit charging that it had paid certain female and black executives less than their male and white peers.[61]
Climate change[edit]
State Street announced in January 2020 that State Street Global Advisors will vote against directors of companies in major stock indices that do not meet targets for environmental, social, and governance changes.[62] According to Morningstar Proxy Data, State Street, "supported a majority of the climate-related disclosure requests that shareholders placed on the ballot," during the 2020 proxy season.[63]