8-K

                SECURITIES AND EXCHANGE COMMISSION

                     Washington, D.C.  20549

                             FORM 8-K

                          CURRENT REPORT

               Pursuant to Section 13 or 15(d) of
              the Securities Exchange Act of 1934



Date of Report:  January 7, 2000

                     State Street Corporation
      .....................................................
      (Exact name of registrant as specified in its charter)

    Massachusetts              0-5108             04-2456637
  .............................................................
  (State of              (Commission File       (IRS Employer
   Incorporation)         Number)                Identification
                                                 Number)

   225 Franklin Street, Boston, Massachusetts          02110
  .............................................................
    (Address of principal executive offices)         (Zip code)

Registrant's telephone number, including area code: (617)786-3000



Item 5.   Other Events.

     On December 28, 1999, Registrant announced that it had sold
$5.2 billion of investment securities as part of a repositioning
of its investment portfolio assets.

     The press release issued by Registrant in connection with
the announcement is filed herewith as Exhibit 99.1 and is
incorporated herein by reference.


Item 7.   Financial Statements and Exhibits.

    (c)   Exhibits.

    99.1  Form of press release on investment securities sale
          dated December 28, 1999.






                            SIGNATURES

     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.

                               STATE STREET CORPORATION

                               /s/ Rex S. Schuette
                               -----------------------------
                               Name:  Rex S. Schuette
                               Title: Senior Vice President and
                                      Chief Accounting Officer
Date: January 7, 2000



                          EXHIBIT INDEX

Exhibit
- -------

   99.1   Form of press release on investment securities sale
          dated December 28, 1999.

EX-99.1

                                                    EXHIBIT 99.1


Immediately

Investors & Analysts:     Media:
Karen A. Warren           Hannah Grove
[1] (617) 664-3477        [1] (617) 664-3377


              STATE STREET SELLS $5.2 BILLION OF
                    INVESTMENT SECURITIES

              Sale Results in a One-time Charge


BOSTON, Mass. - December 28, 1999 - State Street Corporation
(NYSE: STT) announced today that it has sold $5.2 billion of
investment securities as part of a repositioning of its
investment portfolio assets.

     State Street expects the sale of the securities to result in
a one-time, pre-tax  charge to earnings of approximately $57
million, or $.21 per share on an after-tax basis, which will be
recorded in the fourth quarter of 1999.  The securities sold,
principally U.S. Treasury and federal agency securities, all had
an average maturity of less than two years.  At September 30,
1999, State Street Corporation's balance sheet included
investment securities of  $14.4 billion.

     "Given the recent developments in the domestic interest rate
environment, State Street decided to sell these investment
securities," said State Street Chief Financial Officer Ronald L.
O'Kelley.  "Approximately three-quarters of the proceeds from the
sale were used to purchase U.S. Treasury and federal agency
securities at current higher yields, with the remaining invested
in short-term securities.  This repositioning will increase the
overall investment portfolio yield and interest revenue over the
next two years."

     State Street is on track to achieve its 22nd consecutive
year of double-digit earnings per share growth in 1999, in
accordance with its primary financial goal of achieving
sustainable, real growth in earnings per share.  State Street has
two supporting financial goals, one for revenue and one for
return on stockholders' equity.

     O'Kelley concluded, "In April, State Street announced the
extension of its revenue goal through the year 2010.  We are
committed to achieving a compound annual growth rate of 12.5%
real, or inflation adjusted, revenue growth.  With our continued
focus on serving institutional investors, State Street management
remains confident that the company will continue to meet its
long-term financial goals."

     As previously reported, State Street's financial results for
the fourth quarter of 1999 will include an after-tax gain, net of
exit and other associated costs, of approximately $164 million,
or $1.00 in earnings per share, from the sale of its commercial
banking business.

     With $5.3 trillion in assets under custody and $582 billion
under management as of September 30, 1999, State Street
Corporation is one of the world's leading specialists in serving
institutional investors.  Offices are located in the United
States, Canada, Chile, Cayman Islands, Netherlands Antilles,
Ireland, United Kingdom, Netherlands, France, Belgium,
Luxembourg, Switzerland, Germany, Czech Republic, United Arab
Emirates, Russia, People's Republic of China, Taiwan, South
Korea, Japan, Singapore, Australia, and New Zealand.  State
Street Corporation's common stock is traded on the New York Stock
Exchange under the symbol STT.  For more information, visit State
Street's web site at www.statestreet.com.

     This news release contains forward-looking statements as
defined by federal securities laws.  Important factors that
could cause actual results to differ materially from those
indicated by any such forward-looking statements are set forth in
the company's 1998 annual report and subsequent SEC filings.
These include risks and uncertainties relating to the value of
worldwide financial markets, dynamics of markets served,
volatility of currency markets, pace of new business, business
mix, rate of technological change, and the potential impact of
the year 2000 on processing date-sensitive information.


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