Statement from State Street Regarding Market Misunderstandings 18/09/2008
Boston, September 18, 2008 – In response to questions received today from media and other sources, State Street Corporation (NYSE:STT) 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.