State Street Corporation

State Street Corporation, a leading provider of financial services to institutional investors, finds its roots as far back as 1792. It was originally founded as the Union Bank in Boston, Massachusetts. Over the centuries, it has grown to become a global financial powerhouse, providing investment management, research, trading, and asset management services. State Street plays an integral role in the infrastructure of the financial services industry.

State Street Corporation expanded its service capabilities significantly in 1998 by acquiring Investors Bank & Trust for $1.5 billion. This acquisition bolstered State Street's position as a major custodian bank, enhancing its offerings in securities services, clearance, and master trust outsourcing. The transaction underscored State Street's strategic focus on becoming a world leader in asset management and financial services outsourcing.

State Street Corporation launched State Street Global Advisors (SSGA) in 2003, marking its official entry into the investment management business. SSGA has since become one of the largest asset management firms globally, managing hundreds of billions of dollars in assets across all major asset classes. The launch positioned State Street as a key player in the active and index strategies market.

In a bid to further consolidate its leadership in the securities services industry, State Street Corporation acquired Investors Financial Services Corp. for $4.5 billion in 2007. This acquisition was strategic in expanding the company’s global footprint and enhancing its capabilities in fund administration services, particularly in the mutual funds sector. This move was seen as a major step to strengthen their offerings in the institutional investment services sector.

State Street Corporation was one of the major institutions involved in the U.S. government's financial bailout during the 2008 financial crisis. As a systemic player in the financial markets, State Street received $2 billion under the Troubled Asset Relief Program (TARP) to bolster its capital base. Although State Street was criticized for its involvement, the firm was able to swiftly repay the loan, displaying its resiliency during market distress.

In 2012, State Street faced a scandal involving the overcharging of transition management clients. The company agreed to pay fines and reimburse clients after a series of investigations revealed that employees had been deceitfully overcharging for transactions. State Street's resolution of this scandal highlighted the company's commitment to rectifying past wrongs and improving its compliance and risk management procedures.

State Street Global Advisors initiated a public campaign to promote gender diversity in corporate leadership by installing the 'Fearless Girl' statue on Wall Street on March 7, 2017. The statue quickly became an iconic symbol of female empowerment and was strategically placed facing the famous 'Charging Bull' statue. This campaign highlighted State Street's commitment to gender equality and urging companies to increase the number of women directors.

In 2018, State Street Corporation acquired Charles River Development, a provider of investment management front- and middle-office solutions, for $2.6 billion. This acquisition was meant to enhance State Street's technology infrastructure and offer comprehensive solutions to its clients by integrating Charles River's platform with State Street's data and analytics capabilities, thus driving front-to-back office synergy.

State Street Corporation expanded its focus on Environmental, Social, and Governance (ESG) criteria in investment decisions in 2020 by launching various ESG funds and strategies. The firm emphasized the importance of sustainability and responsible investing, aiming to align its investments with long-term environmental and societal goals. This move further established State Street as a leader in the growing field of ESG investing, which is increasingly important for institutional investors.

State Street Corporation announced plans to relocate its headquarters within Boston, Massachusetts in March 2021, consolidating several locations into a single new building at One Congress Tower. This move aimed to modernize their office spaces and create a more aligned corporate environment, reflecting a broader post-pandemic shift towards more efficient and flexible working conditions.