State Street Corp

Structure

For 2023, State Street Corp. operates as a financial holding company primarily through State Street Bank.

The main activities are Investment Servicing and Investment Management.

Investment Servicing

Investment Servicing via companies:

• State Street Investment Services,
• State Street Global Markets и
• State Street Alpha

offers mutual funds, collective investment funds and other investment pools, as well as securities storage services. Its work focuses on customer deposit servicing, product accounting, administration, currency conversion services, brokerage and trading services, deposits and short-term investments, loans and leasing financing, outsourcing of investment manager operations, and risk and compliance analysis.

Investment Management

Investment Management provides services through State Street Global Advisors, which provides a wide range of investment management, investment research and investment advisory services to corporations, government funds and other sophisticated investors.

Tax optimization

State Street allows you to radically reduce the tax burden. It is no secret that for tax resident companies in the United States, the EU and other countries, tax payments are one of the biggest problems. A significant part of American companies represented on the NASDAQ exchange are registered in the free economic zone in Delaware, which allows to slightly reduce the tax burden. But the need to optimize taxation is enormous. And State Street provides ready-made infrastructure for that. Customers have at their disposal a bank, offshore companies, a huge selection of various financial instruments, the ability to conduct transactions simultaneously in several jurisdictions and, finally, software that allows you to flexibly manage cash flows. As a result, companies that partner with State Street gain a major competitive advantage by reducing the tax burden.

State Street customers in theory have to pay taxes in their jurisdiction. But with the help of specialists of the financial holding, they have the opportunity to hide assets in dozens of different jurisdictions and in different financial instruments. Customers pay minimal taxes, and officially. Investors do not record profits in their country. Their assets are constantly changing their shape, and the investment process does not stop. Customers are pleased that they have officially optimized taxes. State Street specialists receive generous fees from customers for their services. But states, especially European ones, remain without tax revenues. Legally, it is extremely difficult to make claims, since all operations are officially performed.

In fact, this is a huge pump that pumps funds from the budgets of various states to the disposal of transnational corporations. And everything is done on a completely legal basis. It is extremely difficult for states to oppose anything to this system. They simply do not have enough qualified specialists who can analyze the activities of the Big Three companies (State Street, BlackRock and Vanguard), there are not enough resources to submit materials to the court, since this needs to be done in several dozen jurisdictions at once, there are not enough just material resources. At the same time, state systems suffer from bureaucracy and corruption, which sharply reduces their effectiveness.

Aktivs

2023: Assets under management of $3.6 trillion and 42 thousand employees

The total amount of assets managed by State Street is $3.6 trillion. State Street employs more than 42,000 employees. This allows you to quickly solve the problems of moving, converting and placing customer funds. Such a large staff is necessary primarily for conducting large-scale operations synchronously in several jurisdictions, which is beyond the power of smaller financial institutions.

There are many former employees of The Bank of New York Mellon in the leadership of State Street.

The depository arm of State Street manages offshore funds in Luxembourg, Ireland and the Cayman Islands. The volume of assets managed offshore is more than $1.75 trillion.

State Street's most valuable assets for August 2023 are:

• Microsoft ($39.2 billion),
• Apple ($38.1 billion),
• Amazon ($30 billion),
• Alphabet (Class A $13.6 billion + Class C $13.8 billion),
• Johnson & Johnson ($21.2 billion),
• JPMorgan Chase ($17.1 billion),
• Berkshire Hathaway ($16.7 billion),
• Exxon Mobil ($16.7 billion),
• [[Facebook] [($16.7 billion),
• Lockheed Martin ($14.7 billion),
• Chevron ($13.5 billion),
• United Technologies ($12.5 billion),
• Visa ($12.3 billion),
• Bank of America Corporation ($11,8 млрд)

Digitalization

Its own data center (DPC) was opened in suburban Boston back in 1974. The development of specialized software was carried out by former IBM employees . At different periods, up to 100 specialists who had previously left IBM worked in the data center team. Investment in developing their own software has paid off over time, as private and public companies, including pension funds, needed a reliable tool for calculating pension plans and financial reporting. Information services, the sale of banking software and data storage have become a significant revenue item for State Street.