public traded as nyse stt s & p 500 component industry financial services founded 1792 ; 224 years ago 1792 headquarters state street financial center boston massachusetts united states key people joseph hooley president ceo and chairman products investment management revenue usd 10.295 billion 2014 1 net income usd 2.037 billion 2014 1 aum usd 2.45 trillion 2014 1 total assets usd 245.19 billion 2016 2 total equity usd 21.47 billion 2014 1 number of employees 29 970 mar 2014 1 website statestreet.com state street corporation known as state street is an american worldwide financial services holding company . state street was founded in 1792 and is the second oldest financial institution in the united states of america . the company s headquarters are at one lincoln street in boston and it has offices in 29 countries around the world . state street is organized into three main divisions . the global services business is a custodian bank with 28 trillion usd of assets under custody and administration . 1 the global advisors business provides investment management services and has 2.45 trillion usd of assets under management . 1 the global markets business offers investment research and trading services to institutional investors . contents 1 history 2 organization 2.1 state street global advisors 2.2 state street global markets 2.3 state street global services 3 regulation 4 controversies 5 see also 6 references 7 external links 7.1 media history edit state street s past can be dated back to the founding years of boston s banking industry . in 1792 the union bank became the third bank to be chartered in boston and was located at the corner of state and exchange streets . 3 state street was known as the great street to the sea as boston became a flourishing maritime capital . the clipper in state street s logo today reflects this period . state street s corporate headquarters located in boston massachusetts . 2006 in 1865 the union bank received a national charter and became the national union bank of boston . state street deposit & trust co opened alongside national union in 1891 . it became the custodian of the first us mutual fund in 1924 the massachusetts investors trust . 3 state street and national union merged in 1925 . state street s growth during the mid 1900s was fueled by mergers and acquisitions . it merged with the second national bank in 1955 and with the rockland atlas national bank in 1961 . william edgerly gained control in 1975 and shifted the company s strategy from commercial banking to investments and securities processing . 3 the company began investing heavily in technologies for securities management and custodian processing . it was helped by a partial acquisition of boston financial data services in 1973 . 3 more than 100 top staff from ibm were headhunted by state street as it set about implementing ibm mainframe systems . state street s new building was completed in 1966 and became the first high rise office tower in downtown boston . in 1972 the company opened its first international office in munich . for much of the 1980s and 1990s it expanded to foreign markets with offices in montreal toronto dublin london paris dubai sydney wellington hong kong and tokyo . 3 it was the early 1990s before state street brought its technology platform to international markets . by 1992 most of state street s revenue came from fees for holding securities settling trades keeping records and performing accounting . 3 it formed a new global asset management business in 1994 and in 1999 divested its retail and commercial banking businesses to citizens financial group . state street acquired kansas city missouri based investors fiduciary trust co. in 1995 for 162 million usd from dst systems and kemper financial services . in 2003 it purchased deutsche bank s securities services division for 1.5 billion usd . 4 state street purchased investors financial services for 4.5 billion usd in 2007 . 5 in 2010 it acquired mourant international finance administration and the securities services group of intesa sanpaolo . 3 state street was named by the g 20 as amongst the world s 29 systemic banks and must meet all conditions of the basel iii accord . 6 the company now employs 29 530 people around the world . 7 it claims to have funds under management of 2.45 trillion usd 1 and assets under custody and administration of 28 trillion usd second to the bank of new york mellon . organization edit state street global advisors edit global advisors is state street s asset management business and dates back to 1978 . it provides investment management research and advisory services to corporations mutual funds insurance companies and other institutional investors . 8 global advisors develops both passive and active management strategies using both quantitative and fundamental approaches . 7 it created the first exchange traded fund in 1993 the spdr s & p 500 and is now one of the world s largest etf providers . 9 global advisors has staff in 27 global offices 8 and claims to have over 2.45 trillion usd of funds under management . 1 in november 2014 state street global advisors sold ssaris to senior management . 10 state street global markets edit global markets is state street s securities business . it offers research trading and securities lending services for foreign exchange equities fixed income and derivatives . 11 the company claims to be a trading partner free from conflicted interests as it does not run proprietary trading books . 12 global markets maintains trading desks in boston london sydney toronto and tokyo . state street global services edit global services is the investment servicing division of state street also known as the state street bank & trust co. it provides asset owners and managers with custodian safekeeping corporate actions fund accounting pricing and valuation and administration financial reporting tax compliance and legal services . 7 13 global services handles assets from many classes including equities derivatives exchange traded funds fixed income assets private equity and real estate . state street now administers 40 percent of the assets under administration in the us mutual fund market . 14 global services also provides outsourcing for operations activities and handles 10.2 trillion usd of middle office assets . 15 regulation edit state street is registered with the board of governors of the federal reserve system as a bank holding company pursuant to the bank holding company act of 1956 . 7 it is a member of the federal reserve system and its deposits are insured by the federal deposit insurance corporation . certain aspects of state street s public disclosure are subject to the requirements of the sarbanes oxley act of 2002 . state street s broker dealer operation known as global markets is registered with and regulated by the securities and exchange commission and the new york stock exchange in the united states . 7 the prudential regulation authority and the london stock exchange regulate state street in the united kingdom . controversies edit in 2009 the state of 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 . two executives from state street global markets left the company in october 2011 following enquiries over the pricing of a fixed income transaction . 16 state street in december 2010 announced that it would be retrenching 5 % of its workforce and effectively reducing the wages of remaining employees by 10 % . 17 in march 2011 it reversed its wage reduction decision but declared that it would still require all employees to work a longer 40 hour week . on 28 february 2012 state street global advisors entered into a consent order with the massachusetts securities division . the division was investigating ssga 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 . 18 state street bank has been accused of stealth outsourcing or transferring american jobs to their outsourcing partners syntel and hcl india under the radar in small increments to avoid any political backlash . state street bank the second largest client of syntel also has a joint venture in the indian city of pune with them which they have the option to buy out . the controversy is compounded by the fact state street bank received an 11.5 million tax incentive from the city of boston to move into a new location in the south boston innovation district as well as 2 billion in tarp assistance all while still sending jobs overseas . 19 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 . 20 see also edit state street bank v. signature financial group is the landmark case in which the court of appeals for the federal circuit ruled 23 july 1998 that a computer algorithm can be patented to the extent that it produces a useful concrete and tangible result . references edit a b c d e f g h i annual report form k 10 2014 pdf . state street corporation . retrieved 4 december 2015 . http www.forbes.com companies state street a b c d e f g fundinguniverse 2014 history of state street corporation retrieved 22 june 2014 usatoday.com 2002 state street will become largest securities services firm retrieved 22 june 2014 state street 2007 press release retrieved 22 june 2014 smith geoffrey 2011 bucket list g20 panel names top global banks the wall street journal retrieved 22 june 2014 a b c d e bloomberg businessweek 2014 state street corp snapshot retrieved 22 june 2014 a b state street 2014 about ssga retrieved 22 june 2014 ryan jen 2007 spyders widen web thestreet retrieved 22 june 2014 sovereign wealth fund institute . state street sells hedge fund unit ssaris . retrieved 21 november 2014 . state street 2014 about ssgm retrieved 22 june 2014 state street 2014 equities trading retrieved 22 june 2014 state street 2014 about ssgs retrieved 22 june 2014 state street 2014 fund administration retrieved 22 june 2014 state street 2014 investment operations retrieved 22 june 2014 mcdaniel kip 2011 state street s mclellan pennings depart amidst question over transition cost aicio retrieved 12 december 2013 van sack jessica 2010 days to get longer at state street bostonherald.com retrieved 4 october 2012 galvin william 2012 secretary galvin fines state street global advisors 5 million for role in mortgage backed cdo securities division retrieved 1 march 2012 http wgbhnews.org post stealth outsourcing state street wgbh stealth outsourcing at state street bank http www.reuters.com article 2012 05 16 statestreet protesters idusl1e8gg9bf20120516 reuters protester shouts disrupt state street annual meeting external links edit wikimedia commons has media related to state street bank . state street home page media edit rooney emily state street outsourcing greater boston wgbh tv boston thursday july 19 2012 v t e 50 largest banks and bank holding companies in the united states ally american express bancwest bank of america bank of new york mellon bb & t bbva compass bmo harris capital one charles schwab cit citigroup citizens comerica deutsche discover e trade fifth third first niagara ge capital goldman sachs hsbc bank usa huntington john deere jpmorgan chase key m & t morgan stanley mufg union mutual of omaha nationwide new york community northern trust people s united pnc popular rbc usa regions santander state farm state street suntrust svb synchrony td tiaa u.s. usaa wells fargo zions indicates the u.s. subsidiary of a non u.s. bank . inclusion on this list is based on u.s. assets