State Street Corporation is an American multinational[2] financial services and bank holding company headquartered at One Congress Street in Boston. It is the second-oldest continuously operating U.S. bank, tracing its roots to Union Bank, chartered in 1792. As of the third quarter of 2025, State Street is one of the world's largest asset managers and custodians, with approximately US$5.4 trillion in assets under management and US$51.7 trillion under custody and administration.[3]
State Street operates globally through three main divisions: Global Services (custody and fund administration), Global Advisors (asset management), and Global Markets (trading and research). It is considered a systemically important bank by the Financial Stability Board and ranks among the "Big Three" index fund managers alongside BlackRock and Vanguard.[4][5][6][7][8][9][10]
The company is ranked 198th on the Fortune 500 as of 2025. The company is on the Financial Stability Board's list of banks considered too big to fail.[11] It is rated by Visual Capitalist as the third U.S. bank by uninsured deposits, with 91.2% of deposits being uninsured.[12]
Current operations
Investment servicing: State Street Global Services
State Street Bank and Trust Company, also known as State Street 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 Investment Management
State Street Investment Management is the investment management division of State Street that provides asset management, research, and advisory services to corporations
History
The company traces its roots to Union Bank, which received a charter in 1792 from Massachusetts Governor John Hancock.[17] It was the third bank to be chartered in Boston and its office was at the corner of State and Exchange Streets.[18][19] In 1865, Union Bank received a national charter and became the National Union Bank of Boston.[20] The bank later built a headquarters at Washington and State streets.[21] 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.
State Street Deposit & Trust Co opened in July 1891. The name was shortened to State Street Trust Company in 1897. It became the custodian of the first U.S. mutual fund in 1924, the Massachusetts Investors Trust (now MFS Investment Management
Controversies
Allegations of 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.[56][57]
Non-disclosure of short position
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.[58]
Financials
See also
- State Street Bank & Trust Co. v. Signature Financial Group, Inc. is a case in which the United States Court of Appeals for the Federal Circuit ruled on July 23, 1998, that a computer algorithm can be patented to the extent that it produces "a useful, concrete and tangible result".
External links
Archives and records
- State Street Bank records at Harvard Business School.
References
- State Street Corporation 2024 Annual Report (Form 10-K) U.S. Securities and Exchange Commission, February 13, 2025^
- State Street on the Forbes Global 2000 List Forbes^
- Yasmin Werner. State Street Corporation (STT) Stock: AUM Soars 15% as Fee Revenues Climb 8% and Provisions Drop