State Street Announces Foreign Exchange Settlement

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.

Contacts:

State Street Corporation
Anthony Ostler, +1 617-664-3477
or
Carolyn Cichon, +1 617-664-8672

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