Chillin' out till it needs to be funded
Last month State Street, the world’s biggest institutional money manager, raised fresh fears about the US financial sector after reporting a 71 per cent drop in quarterly net profits. Its share price fell by more than half in a day.
In December the bank announced that it would cut 1,700 jobs, or 6 per cent of its workforce. It took fourth-quarter charges from the cuts and from shoring up its stable value funds totalling more than $450m.
On Thursday the Boston-based bank revised its 2008 earnings up to $4.30 a share from $3.89 a share. However it projects 2009 operating revenue to decline by 8 to 12 per cent from the year before and operating profits to fall by 12 to 16 per cent.
In recent months, State Street has been the subject of takeover speculation on Wall Street. The list of acquirers thought to be interested in its attractive deposit base includes Goldman Sachs, US Bancorp and Bank of New York.
Shares of State Street rose 1.70 per cent to $24.54 in early trading on Thursday.