It is the second-oldest continually operating United States bank; its predecessor, Union Bank, was founded in 1792.
Global Markets maintains trading desks in Boston, London, Sydney, Toronto, and Tokyo. ==History== The company traces its roots to Union Bank, which received a charter in 1792 from Massachusetts Governor John Hancock.
In 1865, Union Bank received a national charter and became the National Union Bank of Boston.
The bank later built a headquarters at Washington and State streets. State Street Deposit & Trust Co opened in 1891.
mutual fund in 1924, the Massachusetts Investors Trust (now MFS Investment Management). ===20th century=== State Street and National Union merged in 1925.
mutual fund in 1924, the Massachusetts Investors Trust (now MFS Investment Management). ===20th century=== State Street and National Union merged in 1925.
In 1994, the company formed State Street Global Advisors, a global asset management business. In 1995, State Street acquired Investors Fiduciary Trust of Kansas City for $162 million from DST Systems and Kemper Financial Services.
In 1994, the company formed State Street Global Advisors, a global asset management business. In 1995, State Street acquired Investors Fiduciary Trust of Kansas City for $162 million from DST Systems and Kemper Financial Services.
Also in 2003, State Street sold its private asset management business to U.S.
Trust. In July 2007, the company acquired Investors Bank & Trust for $4.5 billion. In October 2008, the United States Department of the Treasury invested $2 billion in the company as part of the Troubled Asset Relief Program and in July 2009, the company became the first major financial firm to repay the Treasury. In 2010, the company acquired Mourant International Finance Administration.
Trust. In July 2007, the company acquired Investors Bank & Trust for $4.5 billion. In October 2008, the United States Department of the Treasury invested $2 billion in the company as part of the Troubled Asset Relief Program and in July 2009, the company became the first major financial firm to repay the Treasury. In 2010, the company acquired Mourant International Finance Administration.
Trust. In July 2007, the company acquired Investors Bank & Trust for $4.5 billion. In October 2008, the United States Department of the Treasury invested $2 billion in the company as part of the Troubled Asset Relief Program and in July 2009, the company became the first major financial firm to repay the Treasury. In 2010, the company acquired Mourant International Finance Administration.
Offsetting this is increased overseas hiring, resulting in a 3K+ net gain of employment. ==Controversies== ===Currency trade fraud=== In 2009, California alleged on behalf of its pension funds CalPERS and CalSTRS that State Street had committed fraud on currency trades handled by the custodian bank.
Trust. In July 2007, the company acquired Investors Bank & Trust for $4.5 billion. In October 2008, the United States Department of the Treasury invested $2 billion in the company as part of the Troubled Asset Relief Program and in July 2009, the company became the first major financial firm to repay the Treasury. In 2010, the company acquired Mourant International Finance Administration.
In October 2011, two executives from State Street Global Markets left the company following charges over the pricing of a fixed income transaction.
In April 2016, they were charged by the United States Department of Justice. ===Non-disclosure of short position=== On February 28, 2012, State Street Global Advisors entered into a consent order with the Massachusetts Securities Division.
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. ===Shareholder complaints=== During the May 2012 annual shareholders meeting, chairman and chief executive Jay Hooley was shouted down on numerous occasions by protesters in relation to the outsourcing and other grievances. ===Secret commissions=== On January 18, 2017, State Street agreed to pay $64.6 million to resolve U.S.
Also in 2016, the company acquired the asset management business of General Electric. In 2017, the company announced that Jay Hooley, the chief executive officer of the company, would retire. In 2018, State Street completed its acquisition of Charles River Development, a Burlington, Massachusetts provider of investment management software.
In April 2016, they were charged by the United States Department of Justice. ===Non-disclosure of short position=== On February 28, 2012, State Street Global Advisors entered into a consent order with the Massachusetts Securities Division.
Also in 2016, the company acquired the asset management business of General Electric. In 2017, the company announced that Jay Hooley, the chief executive officer of the company, would retire. In 2018, State Street completed its acquisition of Charles River Development, a Burlington, Massachusetts provider of investment management software.
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. ===Shareholder complaints=== During the May 2012 annual shareholders meeting, chairman and chief executive Jay Hooley was shouted down on numerous occasions by protesters in relation to the outsourcing and other grievances. ===Secret commissions=== On January 18, 2017, State Street agreed to pay $64.6 million to resolve U.S.
In October 2017, the company paid $5 million to settle a lawsuit charging that it had paid certain female and African-American executives less than their male and European-American peers. === Climate Change === 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.
Also in 2016, the company acquired the asset management business of General Electric. In 2017, the company announced that Jay Hooley, the chief executive officer of the company, would retire. In 2018, State Street completed its acquisition of Charles River Development, a Burlington, Massachusetts provider of investment management software.
The deal closed October 1, 2018, at a cost of approximately $2.6 billion that will be financed by the suspension of share repurchases and the issuing of common and preferred equity.
It is the second largest custodian bank in the world, and it is considered a systemically important bank by the Financial Stability Board. The company is ranked 247th on the Fortune 500 as of 2019.
News of the acquisition led to a drop in State Street shares of nearly 10% with share prices remaining flat since the purchase. In January 2019, State Street announced that it planned to lay off 1,500 employees, increasing the number to 2,300 in July.
In October 2017, the company paid $5 million to settle a lawsuit charging that it had paid certain female and African-American executives less than their male and European-American peers. === Climate Change === 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.
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. ==Financials== ==See also== State Street Bank & Trust Co.
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