State Street Announces Foreign Exchange Settlement
July 26 2016 - 6:05PM
Business Wire
Expects to Resolve All Pending Foreign Exchange
Litigation and Regulatory Matters in the United States Related to
Indirect FX Business; Previously Established Reserve will be
Sufficient to Cover all Costs Associated with These Agreements
State Street Corporation (NYSE:STT) announced today that State
Street Bank and Trust Company has negotiated a series of
agreements, which it expects, subject to final approval, to resolve
all pending litigation and regulatory matters in the United States
related to its indirect foreign exchange business.
“Matters of this nature can drain both time and resources; so
where possible and appropriate we feel it is in State Street’s and
our clients’ best interests to pursue settlements,” said Mike
Rogers, president and chief operating officer of State Street.
“In 2009, we significantly strengthened our disclosures around
indirect foreign exchange, including publishing the spread relative
to indicative interbank market rates at the time of pricing, and
today believe we provide our clients with the most comprehensive
disclosures in the industry.”
State Street reached agreements with the Department of Justice,
Department of Labor and the Massachusetts Attorney General and,
subject to court approval, a class of State Street’s custody
customers. State Street has also negotiated an agreement in
principle with the Securities and Exchange Commission staff that is
subject to approval by the SEC. Each agreement depends upon
certification, for settlement purposes, of a class of State
Street’s custody customers that executed indirect foreign exchange
transactions with State Street between 1998 and 2009, and final
approval by the United States District Court for the District of
Massachusetts of the settlement agreement between State Street and
the class. In total, State Street expects to pay $530 million to
settle claims that had been asserted in the United States with
respect to its indirect foreign exchange business, which will be
fully covered by the previously established reserve.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors,
including investment servicing, investment management and
investment research and trading. With $27 trillion in assets under
custody and administration and $2 trillion* in assets under
management as of March 31, 2016, State Street operates in more than
100 geographic markets worldwide, including the US, Canada, Europe,
the Middle East and Asia. For more information, visit State
Street’s website at www.statestreet.com.
* Assets under management include approximately $33 billion as
of March 31, 2016, for which State Street Global Markets, LLC, an
affiliate of SSGA, serves as the distribution agent.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of U.S. securities laws, including statements about State
Street’s expectations to resolve all pending litigation and
regulatory matters in the United States related to its indirect
foreign exchange business, its expectations regarding the amounts
to be paid to settle those matters and its beliefs regarding other
aspects of that business. Terminology such as “expect,” “believe,”
“will,” “estimate,” “may,” “intend,” “priority,” “outlook,”
“objective,” “plan,” “forecast,” “anticipate,” “seek,” “trend,”
“target,” “strategy” and “goal,” or similar statements or
variations of such terms, are intended to identify forward-looking
statements, although not all forward-looking statements contain
such terms. These statements are not guarantees of future results
or 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 news release. Important factors that may also affect
future results and outcomes include, but are not limited to: each
of the settlement agreements depends upon certification, for
settlement purposes of a class of State Street’s custody customers
that executed indirect foreign exchange transactions with State
Street between 1998 and 2009, and final approval by the United
States District Court for the District of Massachusetts of the
settlement agreement between State Street and the class; and State
Street’s agreement in principle with the SEC is also subject to
approval by the SEC. 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 2015
Annual Report on Form 10-K and its subsequent SEC filings. State
Street encourages investors to read these filings, particularly the
sections on risk factors, for additional information with respect
to any forward-looking statements and prior to making any
investment decision. The forward-looking statements contained in
this news release speak only as of the date of this news release,
and State Street does not undertake efforts to revise those
forward-looking statements to reflect events after that date.
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version on businesswire.com: http://www.businesswire.com/news/home/20160726006594/en/
State Street CorporationAnthony Ostler, +1 617-664-3477orCarolyn
Cichon, +1 617-664-8672
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