8-KOther Events

STATE STREET CORP 8-K Report, Corporate Update (Jun 29, 2009)

Filed June 29, 2009For Securities:STTSTT-PG

Summary

This 8-K filing from State Street Corporation (STT) on June 29, 2009, discloses that the company's principal subsidiary, State Street Bank and Trust Company, received a "Wells" notice from the U.S. Securities and Exchange Commission (SEC) staff. This notice indicates the SEC staff's intent to recommend a civil enforcement action against the company for potential securities law violations. The investigation by the SEC staff centers on disclosures and management practices related to certain active fixed-income strategies employed by State Street Global Advisors during 2007 and preceding periods. The company acknowledges its cooperation with the SEC and other regulators and states that it will have an opportunity to present its side of the story before any final decision is made regarding an enforcement proceeding. Investors should monitor further developments related to this SEC inquiry and its potential financial and reputational impact on State Street.

Key Highlights

  • 1State Street Corporation's principal subsidiary received a "Wells" notice from the SEC staff.
  • 2The SEC staff intends to recommend a civil enforcement action for potential securities law violations.
  • 3The investigation concerns disclosures and management of certain active fixed-income strategies by State Street Global Advisors.
  • 4The period under investigation includes 2007 and prior periods.
  • 5State Street has been cooperating with the SEC and other regulatory bodies.
  • 6The company will have an opportunity to present its perspective before any enforcement action is finalized.
  • 7This filing signifies a potentially material development requiring investor attention.

Frequently Asked Questions

A "Wells" notice is a notification from the SEC staff that they have completed their investigation and intend to recommend that the SEC Commissioners authorize a civil enforcement action against the recipient for alleged violations of securities laws.

The SEC investigation is focused on the disclosures and management of certain active fixed-income strategies by State Street Global Advisors during 2007 and prior periods.

Receiving a Wells notice indicates the SEC staff believes they have a case for enforcement. Potential implications could include fines, penalties, sanctions, reputational damage, and increased regulatory scrutiny, though no formal action has been decided yet.

State Street Corporation is cooperating with the SEC and other regulators. The company will have the opportunity to present its perspective to the SEC staff before any formal decision is made on whether to pursue an enforcement action.