junkbmw

Is State Street's Stock Price Decline Justified?

Maybe you should take a look at the $3 bil or so in unrealized losses on bal sheet, the impact of consolidating $30 bil in unconsolidated off-bal sheet conduits not to mention more unrealized losses (how much?), and its SSGA fixed inc problems before assigning a valuation. Note, the U.S. govt had to inject capital and there could easily be more capital required over the next 6 months. Also a few new brokers won't move the needle on this global custodian. In the meanwhile it will continue to see fee erosion from falling asset values and lower transactions. By the way there are no cash earnings in a finance company. It is all smoke & mirrors as the most recent environment indicates.