State Street in trouble - FT

[bodyofevidence]

ft.com/cms/s/2/4a8ecf08-e701 … fd2ac.html

The stock market has not yet lost its capacity to be shocked. State Street – among the largest providers of stodgy but dependable custody services, and one of the “too big to fail” banks that first received federal bail-out money – was supposed to be safe. On Tuesday morning, however, its shares halved.

there is the risk that State Street has to follow the route of UK and US peers by consolidating its off-balance-sheet conduits. Were it to do so, Barclays Capital calculates that tangible common equity would fall from the current 4.5 per cent to just 1.05 per cent of tangible assets, well below the 3 per cent level State Street targets as prudent. Closing the gap would require $2.7bn of new capital, about a third of the group’s dented market capitalisation. Yet State Street’s management, after talking to its largest shareholders, has decided not to raise new funds.

Big employer here. CEO Slattery on An Board Snip Nua

[ixus]

Places in Dublin & Kilkenny right?

[Stephen]

Yeah, they employ lots of people here in Kilkenny.

[Dreaded_Estate]

2,100 employees in Ireland

[mr_anderson]

Soon to be renamed In-A-State Street

looks for coat …