GLOBAL – State Street Corp. says it is nearing US regulatory limits on capital adequacy – but says it has enough capital to do what it wants to do.
The bank operates under regulatory capital adequacy guidelines that involve quantitative measures of assets, liabilities and some off-balance sheet items.
In a filing to the Securities and Exchange Commission, the Boston-based bank said it was “near the limit on such permitted use of capital and surplus”.
The filing goes on to say: “This limit may affect the pace of future expansion by State Street Bank through these subsidiaries, although there are available alternatives for international expansion”.
“This limit may not have a similar impact on those competitors of the corporation that are significantly larger than State Street,” it adds.
State Street spokeswoman Hannah Grove said: “We feel we have adequate financial resources to do what we want to do.”
She declined to comment on reports that the bank may be bought by rival Citigroup. She said it was in the best interests of clients and shareholders to remain independent. “State Street is committed to remaining independent because we believe that we can continue to deliver higher value to our stockholders and clients as an independent institution.” A Citigroup spokesman had no comment.
Grove pointed to “extremely robust growth, especially in Europe” and cited the recent closing of the previously announced acquisition of Deutsche Bank’s Global Securities Services arms in Italy and Austria, bought as part of a 1.5 billion-dollar deal.
Meanwhile, it has emerged that State Street’s general counsel Maureen Scannell Bateman was among the employees who has opted for voluntary severance. She will retire on September 26. Grove said Bateman would be replaced, but declined to say when that would be.
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