State Street 8-K 2012
Documents found in this filing:
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
On January 18, 2012, State Street Corporation (“State Street” or the “Company”) issued a news release announcing its results of operations and related financial information for full-year 2011 and the fourth quarter of 2011. A copy of that news release is furnished herewith as Exhibit 99.1, and is incorporated herein by reference.
In addition, a copy of a slide presentation pertaining to State Street’s investment portfolio as of December 31, 2011, which will be referenced in connection with the investor conference call to be held by the Company on January 18, 2012, is furnished with this Form 8-K as Exhibit 99.2.
On January 18, 2012, State Street announced additional expense control measures designed to better calibrate the Company’s expenses to its outlook for its capital markets-facing businesses in 2012, which resulted in fourth-quarter 2011 pre-tax charges of $120 million ($0.15 per share). These charges included $83 million ($0.11 per share) resulting from the Company’s withdrawal from its fixed-income trading initiative and $37 million ($0.04 per share) of severance and benefits costs associated with other targeted staff reductions. The $83 million charge associated with the fixed-income trading initiative included $38 million ($0.05 per share) related to changes in the fair value of the initiative’s trading portfolio, $25 million ($0.03 per share) of severance and benefits costs and $20 million ($0.03 per share) of costs associated with asset write-downs and contract terminations.
During the fourth quarter of 2011, the Company commenced a series of actions that concluded on January 13, 2012 with its commitment to fully withdraw from its fixed-income trading initiative and to undertake other targeted staff reductions. It anticipates that all staff reductions will be substantially completed by the end of 2012. In addition, as a result of the withdrawal from its fixed-income trading initiative, the Company intends to wind down the initiative’s remaining trading portfolio. At December 31, 2011, this trading portfolio consisted primarily of derivative assets with an aggregate fair value of approximately $1.89 billion and derivative liabilities with an aggregate fair value of approximately $1.78 billion. The Company’s consolidated results of operations for future periods, during which the trading portfolio is wound down, may be affected, potentially materially, by the impact of economic and market conditions, including changes in credit profiles and currency and yield spreads, on the valuation of, or trade execution for, the initiative’s remaining trading portfolio.
On January 17, 2012, State Street amended its Management Supplemental Retirement Plan to reduce from 6% to 5% the Company’s matching contributions under the plan. As amended, the Company will annually provide each participant in the plan with a contribution equal in amount to that participant’s annual contribution; however, the Company’s contribution will be limited to a maximum of 5% of the participant’s eligible compensation. Prior to the amendment, the Company’s contribution was limited to a maximum of 6% of the participant’s eligible compensation. Each of the Company’s current named executive officers identified in the proxy statement for its 2011 annual meeting of shareholders is eligible to participate in the plan. The amendment is effective as of January 1, 2012.
This Current Report on Form 8-K contains forward-looking statements as defined by United States securities laws, including statements relating to State Street’s expectations concerning the wind-down of the remaining trading portfolio of its former fixed-income trading initiative and the completion of the staff reductions announced today. Forward-looking statements are often, but not always, identified by such forward-looking terminology as “anticipate,” “intend,” "plan," "expect," "look," "believe," "estimate," "seek," "may," "will," "trend," "target,” and "goal," or similar statements or variations of such terms. These statements are not guarantees of future 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 the Company’s expectations or beliefs as of any date subsequent to January 18, 2012.
Important factors that may affect future results and outcomes include, but are not limited to:
Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in the Company’s 2010 Annual Report on Form 10-K and the Company’s subsequent SEC filings. The Company 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 Current Report on Form 8-K speak only as of the date hereof, January 18, 2012, and the Company does not undertake efforts to revise those forward-looking statements to reflect events after that date.
State Street Corporation’s news release dated January 18, 2012, announcing its full-year 2011 and fourth-quarter 2011 results of operations and related financial information, is furnished herewith as Exhibit 99.1, and a slide presentation pertaining to State Street’s investment portfolio, which will be made available in connection with the investor conference call referenced in the January 18, 2012 news release, is furnished herewith as Exhibit 99.2.
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.