8-K

UNITED STATES

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 (Date of earliest event reported): January 15, 2008

State Street Corporation

 (Exact name of registrant as specified in its charter)

Massachusetts	001-07511	04-2456637
(State of Incorporation)	(Commission File Number)	(IRS Employer Identification Number)

One Lincoln Street, Boston, Massachusetts	02111
(Address of principal executive offices)	(Zip code)

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

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:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02     Results of Operations and Financial Condition.

On January 15, 2008, State Street Corporation issued a news release announcing its results of operations and related financial information for the fourth quarter of 2007. 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-sponsored asset-backed commercial paper conduits and made available in connection with the investor conference call referenced in the January 15, 2008 news release is furnished herewith as Exhibit 99.2 and is incorporated herein by reference.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

State Street Corporation’s news release dated January 15, 2008, announcing fourth quarter 2007 results of operations and related financial information, is furnished herewith as Exhibit 99.1, and its slide presentation pertaining to State Street-sponsored asset-backed commercial paper conduits and made available in connection with the investor conference call referenced in the January 15, 2008 news release is furnished herewith as Exhibit 99.2.

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
		By:	/s/ James J. Malerba
		Name:	James J. Malerba
		Title:	Senior Vice President and Corporate Controller
Date:	January 15, 2008

EXHIBIT INDEX

Exhibit No.	Description
99.1	News release dated January 15, 2008, announcing fourth quarter 2007 results of operations and related financial information.
99.2	Slide presentation pertaining to State Street-sponsored asset-backed commercial paper conduits as of December 31, 2007.

EX-99.1

Exhibit 99.1

  One Lincoln Street Boston, MA  02111-2900 United States of America

News Release

Contact:	Edward J. Resch	Investors:	Kelley MacDonald	Media:	Hannah Grove
	+1 617/664-1110		+1 617/664-3477		+1 617/664-3377

STATE STREET REPORTS FOURTH-QUARTER EARNINGS PER SHARE OF $.57, INCLUDING A NET AFTER-TAX CHARGE OF $279 MILLION, OR $.71 PER SHARE

2007 REVENUE CLIMBS 32% COMPARED TO 2006

$300 BILLION IN ASSETS FROM WINS IN SERVICING AND $30 BILLION IN ASSETS FROM WINS IN ASSET MANAGEMENT SUSTAIN MOMENTUM IN CORE BUSINESS IN FOURTH QUARTER

Boston, MA ... January 15, 2008

State Street Corporation today announced 2007 fourth-quarter earnings per share of $0.57 on net income of $223 million, compared to earnings per share of $0.91 on net income of $309 million in the fourth quarter of 2006.  Revenue in the fourth quarter is $2.479 billion compared to $1.622 billion in the fourth quarter of 2006.  Return on shareholders’ equity is 7.7% in the fourth quarter of 2007 compared to 16.9% in the fourth quarter of 2006. Average shares outstanding for the fourth quarter of 2007 are 392 million shares.  For the full year 2007, earnings of $3.45 per share on net income of $1.261 billion compares with $3.26 per share on income from continuing operations of $1.096 billion in 2006.  Return on shareholders’ equity in 2007 is 13.4% compared with return on shareholders’ equity from continuing operations of 16.2% in 2006.   Average shares for the full year 2007 are 365 million shares.

Results presented on an “operating basis” for the fourth quarter of 2007 exclude a previously announced after-tax charge of $279 million ($467 million on a pre-tax operating basis) associated with the underperformance of certain active fixed-income strategies at State Street Global Advisors (SSgA) and $57 million, or $38 million of after-tax merger and integration costs related to the July 2, 2007, acquisition of Investors Financial Services Corp. (“Investors Financial”).  Results presented on an “operating basis” for the fourth quarter of 2006 exclude an $18 million adjustment to reduce income tax expense.Revenue for both quarters is presented on a fully taxable-equivalent basis.   Full-year 2007 results presented on an “operating basis” exclude the $279 million after tax charge associated with State Street Global Advisors and $198 million, or $129 million of after-tax merger and integration costs relating to the acquisition of Investors Financial.  Full-year 2006 results presented on an “operating basis” exclude a $65 million adjustment to increase income tax expense.  Revenue for both years is presented on a fully tax-equivalent basis.

Management presents results on an operating basis in order to provide financial information that is comparable from period to period, and to present comparable financial trends with respect to our ongoing business operations.   Management believes such presentation facilitates an investor’s understanding and analysis of our underlying performance and trends in addition to financial information prepared in accordance with GAAP.

The following financial information is presented on an operating basis. Earnings per share in the fourth quarter are $1.38 per share on net income of $540 million, up 60% from $0.86 per share in the fourth quarter of 2006.  Revenue of $2.496 billion in the fourth quarter of 2007 is up 52.8% from $1.634 billion in the fourth quarter a year ago.  Expenses of $1.649 billion in the fourth quarter of 2007 are up 40.0% from $1.178 billion in the year-ago quarter.  For the fourth quarter of 2007, return on shareholders’ equity is 18.7%, compared to 15.9% for the fourth quarter of 2006.

The following financial information is presented on an operating basis. Earnings for the full-year 2007 is $4.57 per share on net income of $1.669 billion, up 32% from $3.46 per share on income from continuing operations of $1.161 billion in 2006.  Revenue in 2007 is up 32.1% to a record level of $8.394 billion from $6.356 billion in 2006.   Expenses in 2007 of $5.768 billion increased 27.0% from $4.540 billion in 2006.  Return on shareholders equity in 2007 is 17.7%, up from 17.1% in 2006.

Commenting on the performance, Ronald E. Logue, State Street's chairman and chief executive officer, said, "Nearly every revenue item on our income statement increased in double digits this year, compared to 2006, resulting in 32% growth in earnings per share on an operating basis. While investment servicing and investment management fees were both strong, revenue from trading services and securities finance benefited from continuing market volatility, particularly in the fixed-income markets in the second half of 2007. The consolidation of Investors Financial continues on schedule, and the impact on our bottom line in 2007 was dilution of $.06 per share, a significant improvement from our original model of $0.14 per share dilutive. Our strategy of more actively managing the balance sheet and the growth of our non-US business contributed to an annual increase of 55% in fully taxable-equivalent net interest revenue. Net interest margin equaled 1.71% for 2007. Additionally, our non-U.S. revenue now represents approximately 41% of total revenue, up from 39% in 2006.”

Logue added, “As we explained on our call earlier this month, we expect that by establishing the fourth-quarter reserve to address the legal exposure and other costs associated with the underperformance of certain active fixed-income strategies at State Street Global Advisors, we can address customer concerns and help to put the issue behind us, particularly given the current momentum in our business.  Management fee revenue at SSgA grew 21% in 2007 compared to 2006, and SSgA continues to be a strong contributor to State Street’s results.  Total assets under management as of December 31, 2007, grew 13% from the level at the end of 2006, and specifically SSgA’s fixed income assets increased 21% in the same period.”

Logue concluded, “During 2008 we will build on the progress we made in 2007, particularly outside the U.S.  We continue to target positive operating leverage on an annual basis.  For 2008, due to the acquisition of Investors Financial on July 2, 2007, our goal for growth in revenue is 14% to 17%, up from our long-term goal of 8% to 12%.  We expect earnings per share growth of 10% to 15% and return on equity of 14% to 17%, both on an operating basis.  Our 2008 target is to achieve near the lower end of these ranges.”

In reporting its financial results for the fourth quarter of 2007, State Street has prepared information in four categories:

§    “Baseline” results are results on an operating basis excluding the “Investors Financial” results described below and are presented on a fully taxable-equivalent basis.

§    “Investors Financial” results are the revenue and expenses, including financing costs and amortization of intangibles, attributable to the Investors Financial business acquired on July 2, 2007, but excluding merger and integration costs, all presented on a fully taxable-equivalent basis.  Per-share amounts reflect the effect of the acquisition on outstanding shares.

§    “Operating-basis” results are “reported” results excluding the charge recorded in the fourth quarter of 2007 and merger and integration costs. They are presented on a fully taxable-equivalent basis.

§    “Reported” results are in accordance with U.S. generally accepted accounting principles (GAAP).

Management believes that providing separate Investors Financial results and baseline financial information further assists investors and analysts in understanding the effect of that acquisition.

	$ in millions except per share data
	For the three months ended
	December 31, 2007
	Baseline (a)	Investors Financial (b)	Operating (c)	Reported
Fee Revenue	$1,709	$201	1,910	1,910
All other revenue	546	40	586	569
Total revenue	2,255	241	2,496	2,479
Total expenses	1,482	167	1,649	2,173
Income taxes	279	28	307	83
Net income	$494	$46	$540	$223
Diluted EPS	$1.39	$(.01)	$1.38	$.57

(a)represents State Streetresults on an “operating basis,” further adjusted to exclude the “Investors Financial” results described in the adjoining column, all presented on a fully taxable equivalent basis.

(b)represents revenue and expenses, including financing costs and amortization of intangibles, attributable to the Investors Financial business acquired on July 2, 2007, but excluding merger and integration costs. Presented on a fully taxable-equivalent basis. Per-share amounts reflect the impact on outstanding shares from the issuance of approximately 61 million shares for the acquisition.

(c)excludes the charge recorded in the fourth quarter of 2007 and merger and integration costs, and presented on a fully taxable-equivalent basis.

FOURTH-QUARTER RESULTS VS. YEAR-AGO QUARTER

Total revenue on a fully taxable-equivalent basis is $2.496 billion in the fourth quarter of 2007 is up from $1.634 billion, or 52.8%, from the fourth quarter of 2006. Expenses on an operating basis are $1.649 billion, up 40.0% compared with $1.178 billion in the fourth quarter of 2006. As a result, on an operating basis, State Street generated about 1280 basis points of positive operating leverage.

Servicing fees are $967 million, up $269 million or 39%, from $698 million in the year-ago quarter. The increase is attributable to business from customers added from the Investors Financial acquisition, business from new and existing clients and higher average equity valuations. Total assets under custody at quarter end are $15.30 trillion, a record level, up 29%, compared with $11.85 trillion at the end of the year-ago quarter.

Daily average values for the S&P 500 Index are up 8%, for the MSCI® EAFE Indexsm are up 16%, and for the NASDAQ are up 13% during the fourth quarter of 2007 from the year-ago quarter.

Management fees, generated by State Street Global Advisors, are $297 million, up $44 million, or 17%, compared to $253 million in the year-ago quarter. The increase in management fees reflects new business from existing and new clients and an increase in average month-end equity valuations, offset partially by lower performance fees. Total assets under management at quarter end are $1.98 trillion, up 13%, compared to $1.75 trillion at the end of the year-ago quarter.

Average month-end values compared to the fourth quarter of 2006, are up 7% for the S&P 500 Index and up 13% for the NASDAQ; average month-end values for the MSCI® EAFE Indexsm are up 15%.  The total return of the Lehman US Aggregate bond index for the fourth quarter is 3.00%.

Trading services revenue, which includes foreign exchange trading revenue and brokerage and other fee revenue, is up 73%, from $203 million to $352 million. The increase is driven by improved volumes and higher volatility in foreign exchange, as well as an increase in brokerage and other revenue principally due to the acquisition of Currenex in March, 2007.

Securities finance revenue is $256 million in the quarter, compared to $90 million in the year-ago quarter, an increase of 184%.  The increase primarily reflects improved spreads and increased demand for securities on loan as a result of turmoil in the fixed-income markets.

Processing and other revenue is down 38%, or $23 million to $38 million primarily due to increased costs of funding for our asset-backed commercial paper.

Fully taxable-equivalent net interest revenue is $573 million, up 75% from $328 million in last year’s fourth quarter.  The increase is due to reinvestment of assets at higher rates and lower-cost funding, the impact of the Investors Financial acquisition, and favorable spreads and increased volumes of non-US deposits.

The increase in expenses on an operating basis to $1.649 billion in the fourth quarter of 2007 from $1.178 billion in the fourth quarter of 2006 is primarily due to the inclusion of Investors Financial’s operating expenses for the second half of 2007.  Baseline expenses increased 26%.

Salaries and employee benefits expense on an operating basis increased $240 million to $934 million, attributable to additions to headcount from the Investors Financial acquisition.  Transaction processing expense increased 52% to $184 million principally due to the acquisition.  Also primarily as a result of the acquisition, information systems and communications expense increased 24% to $148 million, and occupancy expenses of $107 million in 2007 quarter compare to $94 million in the 2006 quarter.  On an operating basis, other expenses increased 84%, or $126 million, to $276 million, primarily due to acquisition costs, fees, such as for professional services and recruiting, and securities processing costs.

The effective tax rate was 27.1% in the fourth quarter of 2007 compared with 30.4% in the fourth quarter of 2006.  We expect the rate for 2008 to be 34.5%.

FOURTH-QUARTER RESULTS VS. THIRD QUARTER

On an operating basis, fourth-quarter earnings are $1.38 per share as compared to third-quarter earnings of $1.15 per share, which excluded $91 million, or $0.24 per share of after-tax merger and integration costs. On an operating basis in both periods, earnings per share would have increased 20%. Total revenue on a fully tax-equivalent basis in the 2007 fourth quarter of $2.496 billion is up 10.6%, or $239 million compared to $2.257 billion in the third quarter. On an operating basis, expenses in the fourth quarter of 2007 are $1.649 billion up 6.5%, or $101 million, from third quarter expenses of $1.548 billion.

Servicing fee revenue is up 3% due to business from new and existing customers and higher average equity valuations. Management fees are down 1% due to lower performance fees, offset partially by new business wins and higher equity valuations. Trading services revenue is up 10% to $352 million primarily due to higher volatility and increased volumes and higher volatility in FX. Securities finance revenue improved 55% to $256 million due to improved spreads.   Processing fees and other revenue declined 38% to $38 million due to lower results from the structured products business and lower earnings from joint-venture equity investments.  Fully taxable-equivalent net interest revenue increased 19% to $573 million due to reinvestment of assets at higher rates and a higher level of lower-cost funding and the impact of the Investors Financial acquisition.

Salaries and employee benefits expense isup 2% on an operating basis due to higher headcount added to service new business.  Occupancy expense was down 2% due to lower operating costs.  On an operating basis, other expense increased 30%, or $63million, to $276 millionprimarily due to acquisition costs, fees, such as for professional services and recruiting, and securities processing costs.

FULL YEAR 2007 VS. 2006

Total revenue on a fully taxable-equivalent basis increased 32.1% from $6.356 billion to $8.394 billion.  Servicing fees increased 24%, from $2.723 billion to $3.388 billion.  Management fees increased 21%, from $943 million to $1.141 billion.  Trading services revenue increased 34%, from $862 million to $1.152 billion and securities finance revenue increased 76%, from $386 million to $681 million.  Processing fees and other revenue decreased 13%, to $237 million from $272 million.   Fully taxable-equivalent net interest revenue increased 55%, from $1.155 billion to $1.788 billion.

On an operating basis, expenses increased 27.0%, from $4.540 billion to $5.768 billion, excluding merger and integration costs and the impact of the charge.  Operating expenses included an increase of 28% to $3.397 billion in salaries and employee benefits expense.  Transaction processing expense increased 25% to $619 million and information systems and communications increased 9% to $546 million.  Occupancy expense increased 9% to $408 million.  Other expenses increased 54% to $798 million.

ADDITIONAL INFORMATION

All per share amounts represent diluted earnings per share based on average shares outstanding for the respective period reported. State Street expects to complete the previously announced $1 billion accelerated share repurchase by January 18, 2008.

INVESTOR CONFERENCE CALL

State Street will webcast an investor conference call today, Tuesday, January 15, 2008, at 9:30 a.m. est, available at www.statestreet.com/stockholder. The conference call will also be available via telephone, at +1 719/457-2679 (confirmation code 4616472). Recorded replays of the conference call will be available on the web site, and by telephone at +1 402/220-4230, beginning at 2:00 PM today. The telephone replay will be available for approximately two weeks following the conference call. This press release and additional financial information is available on State Street’s website, at www.statestreet.com/stockholder, under “Financial Reports.”

State Street Corporation (NYSE: STT) is the world's leading specialist in providing institutional investors with investment servicing, investment management and investment research and trading services. With $15.30 trillion in assets under custody and $1.98 trillion in assets under management at December 31, 2007, State Street operates in 26countries and more than 100 geographic markets worldwide and employs 27,110 worldwide.  For more information, visit State Street’s web site at www.statestreet.com or call 877/639-7788 [NEWS STT] toll-free in the United States and Canada, or +1 678/999-4577outside those countries.

FORWARD-LOOKING STATEMENTS

This news announcement contains forward-looking statements as defined by United States securities laws, including statements about the financial outlook and business environment, exposure to claims and the adequacy of our reserve. 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 State Street's expectations or beliefs as of any date subsequent to the date of this release.

Important factors that may affect future results and outcomes include:

·       State Street's ability to integrate and convert acquisitions into its business, including the acquisition of Investors Financial Services Corp.;

·       the level and volatility of interest rates, particularly in the U.S. and Europe; the performance and volatility of securities, currency and other markets in the U.S. and internationally; and economic conditions and monetary and other governmental actions designed to address those conditions;

·       the liquidity of the US and European securities markets, particularly the markets for fixed-income securities, including asset-backed commercial paper; and the liquidity requirements of our customers;

·       the credit quality and credit agency ratings of the securities in our investment securities portfolio, a deterioration or downgrade of which could lead to other-than-temporary impairment of the respective securities and the recognition of an impairment loss;

·       State Street's ability to attract non-interest bearing deposits and other low-cost funds;

·       the results of litigation and similar disputes and the effect that any such results may have on SSgA’s reputation and its ability to attract and retain customers;

·       the possibility that the ultimate costs of the legal exposure associated with SSgA’s actively managed fixed-income strategies may exceed or be below the level of the reserve, in view of the uncertainties of the timing and outcome of litigation, and the amounts involved;

·       the possibility of further developments of the nature giving rise to the legal exposure associated with SSgA’s actively managed fixed-income and other investment strategies;

·       the performance and demand for the investment products we offer;

·       the competitive environment in which State Street operates;

·       the enactment of legislation and changes in regulation and enforcement that impact State Street and its customers, as well as the effects of legal and regulatory proceedings, including litigation;

·       State Street's ability to continue to grow revenue, control expenses and attract the capital necessary to achieve its business goals and comply with regulatory requirements;

·       State Street's ability to control systemic and operating risks;

·       trends in the globalization of investment activity and the growth on a worldwide basis in financial assets;

·       trends in governmental and corporate pension plans and savings rates;

·       changes in accounting standards and practices, including changes in the interpretation of existing standards, that impact State Street's consolidated financial statements; and

·       changes in tax legislation and in the interpretation of existing tax laws by U.S. and non-U.S. tax authorities that impact the amount of taxes due.

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in State Street's 2006 Annual Report on Form 10-K and its subsequent SEC filings. State Street encourages investors to read its 10-K, particularly the section on Risk Factors, and its subsequent SEC filings for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking statements contained in this press release speak only as of the date hereof, January 15, 2008, and State Street will not undertake efforts to revise those forward-looking statements to reflect events after this date.

STATE STREET CORPORATION
Earnings Press Release Addendum
Financial Highlights
December 31, 2007
		Quarters Ended						% Change
								Q4 2007		Q4 2007
(Dollars in millions, except per share amounts		December 31,		September 30,		December 31,		vs.		vs.
or where otherwise noted)		2007(1)		2007(1)		2006		Q3 2007		Q4 2006
Total Revenue	$	2,479	$	2,240	$	1,622		11	%	53	%
Total Expenses (2)(3)		2,173		1,689		1,178		29		84
Net Income		223		358		309		(38)		(28)
Diluted Earnings Per Share (4)	$	.57	$	.91	$	.91		(37)		(37)
Cash Dividends Declared Per Share	$	.23	$	.22	$	.21
Closing Price Per Share of Common Stock (at quarter end)		81.20		68.16		67.44
Return on Equity		7.7	%	12.6	%	16.9	%
At Quarter End:
Assets Under Custody (AUC) (in trillions)	$	15.30	$	15.15	$	11.85
Assets Under Management (AUM) (in trillions)		1.98		2.00		1.75

	Years Ended		% Change
			2007
	December 31,	December 31,	vs.
(Dollars in millions, except per share amounts)	2007 (5)	2006	2006

Total Revenue	$	8,336	$	6,311		32	%
Total Expenses (2) (3)		6,433		4,540		42
Income Tax Expense		642		675		(5	)
Income from Continuing Operations		1,261		1,096		15
Income from Discontinued Operations		-		10
Net Income		1,261		1,106
Diluted Earnings Per Share:
From Continuing Operations	$	3.45	$	3.26		6
From Discontinued Operations		-		.03
Net Income		3.45		3.29
Cash Dividends Declared Per Share		.88		.80		10
Return on Equity from Continuing Operations		13.4		16.2	%
Return on Equity		13.4		16.4

(1) Quarters ended December 31 and September 30, 2007 include financial results of Investors Financial, which State Street acquired on July 2, 2007.

(2)  Total expenses for the quarters ended December 31 and September 30, 2007 include merger and integration costs of $57 million

and $141 million, respectively, or $38 million and $91 million after-tax, respectively, recorded in connection with the acquisition of Investors Financial.

 Total expenses for the year ended December 31, 2007 included merger and integration costs of $198 million, or $129 million after-tax.

(3)Total expenses for the quarter and year ended December 31, 2007 include a net charge of $467 million, or $279 million after-tax, associated with

certain active fixed-income strategies at State Street Global Advisors.

(4)Diluted earnings per share for the quarters ended December 31 and September 30, 2007 reflect the issuance of 60.8 million shares

on July 2, 2007 in connection with the completion of the acquisition of Investors Financial.

(5)Financial results for the year ended December 31, 2007 include results of Investors Financial for the quarters ended September 30 and

 December 31, 2007.

STATE STREET CORPORATION

Earnings Press Release Addendum

SELECTED FINANCIAL INFORMATION

Quarters and Years Ended December 31, 2007 and December 31, 2006

	Quarters Ended						Years Ended
	December 31,		December 31,				December 31,		December 31,
(Dollars in millions, except per share amounts)		2007(1)		2006	% Change			2007 (2)		2006	% Change
Fee Revenue:
Servicing fees	$	967	$	698	39	%	$	3,388	$	2,723	24
Management fees		297		253	17			1,141		943	21
Trading services		352		203	73			1,152		862	34
Securities finance		256		90	184			681		386	76
Processing fees and other		38		61	(38)			237		272	(13)
Total fee revenue		1,910		1,305	46			6,599		5,186	27
Net Interest Revenue:
Interest revenue		1,454		1,226	19			5,212		4,324	21
Interest expense		898		910	(1)			3,482		3,214	8
Net interest revenue (3)		556		316	76			1,730		1,110	56
Provision for loan losses		-		-				-		-
Net interest revenue after provision for loan losses		556		316	76			1,730		1,110	56
Gains on sales of available-for-sale investment securities, net		13		1				7		15
Total revenue		2,479		1,622	52.8			8,336		6,311	32.1
Operating Expenses:
Salaries and employee benefits		793		694	14			3,256		2,652	23
Information systems and communications		148		119	24			546		501	9
Transaction processing services		184		121	52			619		496	25
Occupancy		107		94	14			408		373	9
Special charge		600		-	-			600		-	-
Merger and integration costs		57		-	-			198		-	-
Other		284		150	89			806		518	56
Total operating expenses		2,173		1,178	84.5			6,433		4,540	41.7
Income from continuing operations before income tax expense		306		444	(31)			1,903		1,771	7
Income tax expense from continuing operations		83		135				642		675
Income from continuing operations		223		309	(28)			1,261		1,096	15
Income from discontinued operations before income tax expense		-		-				-		16
Income tax expense from discontinued operations		-		-				-		6
Income from discontinued operations		-		-				-		10
Net income	$	223	$	309			$	1,261	$	1,106
Earnings Per Share From Continuing Operations:
Basic	$	.58	$	.93	(38)		$	3.50	$	3.31	6
Diluted		.57		.91	(37)			3.45		3.26	6
Earnings Per Share From Discontinued Operations:
Basic	$	-	$	-			$	-	$	.03
Diluted		-		-				-		.03
Earnings Per Share:
Basic	$	.58	$	.93			$	3.50	$	3.34
Diluted		.57		.91				3.45		3.29
Average Shares Outstanding (in thousands):
Basic		385,200		331,421				360,675		331,350
Diluted		392,200		337,429				365,488		335,732

Consolidated Selected Financial Information presented above was prepared in accordance with accounting principles generally accepted in the United States.

(1) Quarter ended December 31, 2007 includes financial results of Investors Financial, which State Street acquired on July 2, 2007.

(2)  Year ended December 31, 2007 includes results of Investors Financial for the quarters ended September 30 and December 31, 2007.

(3)Net interest revenue on a fully taxable-equivalent basis was $573 million and $328 million for the quarters ended December 31, 2007 and 2006, respectively,

and $1.788 billion and $1.155 billion for the years ended December 31, 2007 and 2006, respectively. These amounts include taxable-equivalent adjustments

of $17 million and $12 million for the quarters ended December 31, 2007 and 2006, respectively, and $58 million and $45 million for the year ended

December 31, 2007 and 2006.

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED FINANCIAL INFORMATION
Quarters Ended December 31, 2007 and September 30, 2007
	Quarters Ended (1)
		December 31,		September 30,
(Dollars in millions, except per share amounts)		2007		2007	% Change
Fee Revenue:
Servicing fees	$	967	$	937	3	%
Management fees		297		299	(1)
Trading services		352		320	10
Securities finance		256		165	55
Processing fees and other		38		61	(38)
Total fee revenue		1,910		1,782	7
Net Interest Revenue:
Interest revenue		1,454		1,383	5
Interest expense		898		919	(2)
Net interest revenue (2)		556		464	20
Provision for loan losses		-		-
Net interest revenue after provision for loan losses		556		464	20
Gains (Losses) on sales of available-for-sale investment securities, net		13		(6)
Total revenue		2,479		2,240	10.7
Operating Expenses:
Salaries and employee benefits		793		916	(13)
Information systems and communications		148		145	2
Transaction processing services		184		165	12
Occupancy		107		109	(2)
Special charge		600		-	-
Merger and integration costs		57		141	(60)
Other		284		213	33
Total operating expenses		2,173		1,689	28.7
Income before income tax expense		306		551	(44)
Income tax expense		83		193
Net income	$	223	$	358	(38)
Earnings Per Share:
Basic	$	.58	$	.92	(37)
Diluted		.57		.91	(37)
Average Shares Outstanding (in thousands):
Basic		385,200		386,843
Diluted		392,200		392,150

Consolidated Selected Financial Information presented above was prepared in accordance with accounting principles generally

accepted in the United States.

(1) Quarters ended December 31 and September 30, 2007 include financial results of Investors Financial, which State Street acquired on July 2, 2007.

(2) Net interest revenue on a fully taxable-equivalent basis was $573 million and $481 million for the quarters ended

December 31 and September 30, 2007, respectively. These amounts include taxable-equivalent adjustments of $17 million.

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED OPERATING-BASIS FINANCIAL INFORMATION
Quarters and Years Ended December 31, 2007 and December 31, 2006
	Quarters Ended (1)								Years Ended(1)
	December 31,			December 31,					December 31,			December 31,
(Dollars in millions, except per share amounts)		2007			2006		% Change			2007			2006		% Change
Fee Revenue:
Servicing fees	$	967		$	698		39	%	$	3,388		$	2,723		24	%
Management fees		297			253		17			1,141			943		21
Trading services		352			203		73			1,152			862		34
Securities finance		256			90		184			681			386		76
Processing fees and other		38			61		(38)			237			272		(13)
Total fee revenue		1,910			1,305		46			6,599			5,186		27
Net Interest Revenue:
Interest revenue, operating basis		1,471			1,238		19			5,270			4,369		21
Interest expense		898			910		(1)			3,482			3,214		8
Net interest revenue, operating basis		573			328		75			1,788			1,155		55
Provision for loan losses		-			-					-			-
Net interest revenue after provision for loan losses, operating basis		573			328		75			1,788			1,155		55
Gains on sales of available-for-sale investment securities, net		13			1					7			15
Total revenue, operating basis		2,496			1,634		52.8			8,394			6,356		32.1
Operating Expenses:
Salaries and employee benefits, operating basis		934			694		35			3,397			2,652		28
Information systems and communications		148			119		24			546			501		9
Transaction processing services		184			121		52			619			496		25
Occupancy		107			94		14			408			373		9
Other, operating basis		276			150		84			798			518		54
Total operating expenses, operating basis		1,649			1,178		40.0			5,768			4,540		27.0
Income from continuing operations before income tax expense, operating basis		847			456		86			2,626			1,816		45
Income taxes from continuing operations, operating basis		290			153					899			610
Taxable-equivalent adjustment		17			12					58			45
Net income from continuing operations, operating basis	$	540		$	291		86		$	1,669		$	1,161		44
Diluted earnings per share from continuing operations, operating basis	$	1.38		$	.86		60		$	4.57		$	3.46		32
Average diluted shares outstanding (in thousands)		392,200			337,429					365,488			335,732
Return on equity from continuing operations, operating basis		18.7	%		15.9	%				17.7	%		17.1	%
(1)Refer to the accompanying reconciliation of reported results to operating-basis results.

STATE STREET CORPORATION
Earnings Press Release Addendum
SELECTED OPERATING-BASIS FINANCIAL INFORMATION
Quarters Ended December 31, 2007 and September 30, 2007
	Quarters Ended
		December 31,			September 30,
(Dollars in millions, except per share amounts)		2007 (1)			2007			% Change
Fee Revenue:
Servicing fees		$	967		$	937			3	%
Management fees			297			299			(1	)
Trading services			352			320			10
Securities finance			256			165			55
Processing fees and other			38			61			(38	)
Total fee revenue			1,910			1,782			7
Net Interest Revenue:
Interest revenue, operating basis			1,471			1,400			5
Interest expense			898			919			(2	)
Net interest revenue, operating basis			573			481			19
Provision for loan losses			-			-
Net interest revenue after provision for loan losses, operating basis			573			481			19
Gains (Losses) on sales of available-for-sale investment securities, net			13			(6	)
Total revenue, operating basis			2,496			2,257			10.6
Operating Expenses:
Salaries and employee benefits, operating basis			934			916			2
Information systems and communications			148			145			2
Transaction processing services			184			165			12
Occupancy			107			109			(2	)
Other, operating basis			276			213			30
Total operating expenses, operating basis			1,649			1,548			6.5
Income from continuing operations before income tax expense, operating basis			847			709			19
Income taxes from continuing operations			290			243
Taxable-equivalent adjustment			17			17
Net income from continuing operations, operating basis		$	540		$	449			20
Diluted earnings per share from continuing operations, operating basis		$	1.38		$	1.15			20
Average diluted shares outstanding (in thousands)			392,200			392,150
Return on equity from continuing operations, operating basis			18.7	%		15.8	%

(1)Refer to the accompanying reconciliation of reported results to operating-basis results.

STATE STREET CORPORATION
Earnings Press Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter and Year Ended December 31, 2007
(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2007									Year Ended December 31, 2007
		Reported						Operating			Reported						Operating
		Results		Adjustments				Results			Results		Adjustments				Results
Fee Revenue:
Servicing fees	$	967					$	967		$	3,388					$	3,388
Management fees		297						297			1,141						1,141
Trading services		352						352			1,152						1,152
Securities finance		256						256			681						681
Processing fees and other		38						38			237						237
Total fee revenue		1,910						1,910			6,599						6,599
Net Interest Revenue:
Interest revenue		1,454		$	17	(1)		1,471			5,212		$	58	(1)		5,270
Interest expense		898			-			898			3,482			-			3,482
Net interest revenue		556			17			573			1,730			58			1,788
Provision for loan losses		-			-			-			-			-			-
Net interest revenue after provision for loan losses		556			17			573			1,730			58			1,788
Gains on sales of available-for-sale investment securities, net		13			-			13			7			-			7
Total revenue		2,479			17			2,496			8,336			58			8,394
Operating Expenses:
Salaries and employee benefits		793			141	(2)		934			3,256			141	(2)		3,397
Information systems and communications		148			-			148			546			-			546
Transaction processing services		184			-			184			619			-			619
Occupancy		107			-			107			408			-			408
Special charge		600			(600)	(2)		-			600			(600)	(2)		-
Merger and integration costs		57			(57)	(3)		-			198			(198)	(3)		-
Other		284			(8)	(2)		276			806			(8)	(2)		798
Total operating expenses		2,173			(524)			1,649			6,433			(665)			5,768
Income from continuing operations before income taxes		306			541			847			1,903			723			2,626
Income taxes from continuing operations		83			207			290			642			257			899
Taxable-equivalent adjustment		-			17	(1)		17			-			58	(1)		58
Net income from continuing operations	$	223		$	317		$	540		$	1,261		$	408		$	1,669
Diluted earnings per share from continuing operations	$	.57		$	.81		$	1.38		$	3.45		$	1.12		$	4.57
Average diluted shares outstanding (in thousands)		392,200			392,200			392,200			365,488			365,488			365,488
Return on equity from continuing operations		7.7	%		11.0	%		18.7	%		13.4	%		4.3	%		17.7	%

Reported results reflect State Street's Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.

(1) Represents taxable-equivalent adjustment, which is not included in reported results.

(2)Represents a net charge associated with certain active fixed-income strategies at State Street Global Advisors.

(3)Represents merger and integration costs recorded in connection with the acquisition of Investors Financial, which are direct and incremental costs associated with the

acquisition and do not include ongoing expenses of the combined organization.

STATE STREET CORPORATION

Earnings Press Release Addendum

RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS

Quarter and Year Ended December 31, 2006

(Dollars in millions, except per share amounts)	Quarter Ended December 31, 2006									Year Ended December 31, 2006
		Reported						Operating			Reported						Operating
		Results		Adjustments				Results			Results		Adjustments				Results
Fee Revenue:
Servicing fees	$	698					$	698		$	2,723					$	2,723
Management fees		253						253			943						943
Trading services		203						203			862						862
Securities finance		90						90			386						386
Processing fees and other		61						61			272						272
Total fee revenue		1,305						1,305			5,186						5,186
Net Interest Revenue:
Interest revenue		1,226		$	12	(1)		1,238			4,324		$	45	(1)		4,369
Interest expense		910			-			910			3,214			-			3,214
Net interest revenue		316			12			328			1,110			45			1,155
Provision for loan losses		-			-			-			-			-			-
Net interest revenue after provision for loan losses		316			12			328			1,110			45			1,155
Gains on sales of available-for-sale investment securities, net		1			-			1			15			-			15
Total revenue		1,622			12			1,634			6,311			45			6,356
Operating Expenses:
Salaries and employee benefits		694			-			694			2,652			-			2,652
Information systems and communications		119			-			119			501			-			501
Transaction processing services		121			-			121			496			-			496
Occupancy		94			-			94			373			-			373
Other		150			-			150			518			-			518
Total operating expenses		1,178			-			1,178			4,540			-			4,540
Income from continuing operations before income taxes		444			12			456			1,771			45			1,816
Income taxes from continuing operations		135			18	(2)		153			675			(65)	(2)		610
Taxable-equivalent adjustment		-			12	(1)		12			-			45	(1)		45
Net income from continuing operations	$	309		$	(18)		$	291		$	1,096		$	65		$	1,161
Diluted earnings per share from continuing operations	$	.91		$	(.05)		$	.86		$	3.26		$	.20		$	3.46
Average diluted shares outstanding (in thousands)		337,429			337,429			337,429			335,732			335,732			335,732
Return on equity from continuing operations		16.9	%		(1.0)	%		15.9	%		16.2	%		.9	%		17.1

Reported results reflect State Street's Consolidated Statement of Income prepared in accordance with accounting principles generally accepted in the United States.

(1)Represents taxable-equivalent adjustment, which is not included in reported results.

(2)Represents tax-related adjustments primarily related to the impact of TIPRA and issues associated with leveraged lease transactions.

STATE STREET CORPORATION
Earnings Press Release Addendum
RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS
Quarter Ended September 30, 2007
(Dollars in millions, except per share amounts)	Quarter Ended September 30, 2007
		Reported						Operating
		Results		Adjustments				Results
Fee Revenue:
Servicing fees	$	937					$	937
Management fees		299						299
Trading services		320						320
Securities finance		165						165
Processing fees and other		61						61
Total fee revenue		1,782						1,782
Net Interest Revenue:
Interest revenue		1,383		$	17	(1)		1,400
Interest expense		919			-			919
Net interest revenue		464			17			481
Provision for loan losses		-			-			-
Net interest revenue after provision for loan losses		464			17			481
Gains on sales of available-for-sale investment securities, net		(6)			-			(6)
Total revenue		2,240			17			2,257
Operating Expenses:
Salaries and employee benefits		916			-			916
Information systems and communications		145			-			145
Transaction processing services		165			-			165
Occupancy		109			-			109
Merger and integration costs		141			(141)	(2)		-
Other		213			-			213
Total operating expenses		1,689			(141)			1,548
Income from continuing operations before income taxes		551			158			709
Income taxes from continuing operations		193			50			243
Taxable-equivalent adjustment		-			17	(1)		17
Net income from continuing operations	$	358		$	91		$	449
Diluted earnings per share from continuing operations	$	.91		$	.24		$	1.15
Average diluted shares outstanding (in thousands)		392,150			392,150			392,150
Return on equity from continuing operations		12.6	%		3.2	%		15.8	%

Reported results reflect State Street's Consolidated Statement of Income prepared in accordance with accounting principles

generally accepted in the United States.

(1) Represents taxable-equivalent adjustment, which is not included in reported results.

(2)Represents merger and integration costs recorded in connection with the acquisition of Investors Financial, which are direct

and incremental costs associated with the acquisition and do not include ongoing expenses of the combined organization.

STATE STREET CORPORATION
Press Release Addendum
CONSOLIDATED STATEMENT OF CONDITION
	December 31,		September 30,		December 31,
(Dollars in millions, except per share amounts)	2007		2007		2006
Assets
Cash and due from banks	$	4,733	$	4,610	$	2,368
Interest-bearing deposits with banks		5,579		6,559		5,236
Securities purchased under resale agreements		19,133		16,151		14,678
Federal funds sold		4,540		2,575		0
Trading account assets		589		1,305		785
Investment securities available for sale		70,326		72,789		60,445
Investment securities held to maturity		4,233		4,294		4,547
Loans and leases (net of allowance of $18)		15,784		11,292		8,928
Premises and equipment		1,894		1,824		1,560
Accrued income receivable		2,096		1,883		1,617
Goodwill		4,567		4,601		1,384
Other intangible assets		1,990		1,994		434
Other assets		7,079		10,011		5,371
Total assets	$	142,543	$	139,888	$	107,353
Liabilities
Deposits:
Noninterest-bearing	$	15,039	$	13,779	$	10,194
Interest-bearing -- U.S.		14,790		15,838		1,272
Interest-bearing -- Non-U.S.		65,960		63,384		54,180
Total deposits		95,789		93,001		65,646
Securities sold under repurchase agreements		14,646		14,008		19,147
Federal funds purchased		425		320		2,147
Other short-term borrowings		5,557		4,802		2,835
Accrued taxes and other expenses		4,392		3,953		3,143
Other liabilities		6,799		8,938		4,567
Long-term debt		3,636		3,616		2,616
Total liabilities		131,244		128,638		100,101
Shareholders' Equity
Preferred stock, no par: authorized 3,500,000; issued none
Common stock, $1 par: authorized 750,000,000 shares;
issued 398,366,000, 398,370,000 and 337,126,000 shares		398		398		337
Surplus		4,630		4,616		399
Retained earnings		7,745		7,610		7,030
Accumulated other comprehensive loss		(575)		(369)		(224)
Treasury stock (at cost 12,082,000, 13,576,000 and 4,688,000 shares)		(899)		(1,005)		(290)
Total shareholders' equity		11,299		11,250		7,252
Total liabilities and shareholders' equity	$	142,543	$	139,888	$	107,353

EX-99.2

Exhibit 99.2

1 Asset-Backed Commercial Paper Conduits January 15, 2008

2 Asset Backed Commercial Paper (ABCP) Conduits Multiseller Peer Group Comparison State Street-Sponsored Conduits Multiseller Peer Group** **Source: Moody’s Investor Service; Data as of 8/31/07Multiseller Peer Group, identified by Moody’s, consists of 30 domestic and international banks * NR Assets in State Street-Sponsored Conduits reflect structured transactions. These transactions have been reviewed by rating agencies and have been structured to maintain a P1 or similar conduit rating. Moody’s peer group includes: Citibank, NA, JPMorgan Chase Bank, Societe Generale, ABN AMRO, Deutsche Bank AG, Bank of America NA, Fortis Banque SA, Barclays Bank, Rabobank Nederland, Lloyds TSB Bank, State Street Bank, Calyon, Bayerische Landesbank GZ, Dresdner Bank AG, Royal Bank of Canada, WestLB AG, Wachovia Bank, HSBC Bank, Royal Bank of Scotland, Deutsche Bank Trust Company, BNP Paribas, Bank of Tokyo-Mitsubishi UFJ, Commerzbank AG, Hudson Castle Group Inc., Landesbank Baden-Wurttemberg, Credit Suisse, Bank of Montreal, Bank of Nova Scotia, ING Bank, Suntrust Bank

3ABCP Conduits Overview State Street sponsors four ABCP conduits Conduit A (A1/P1) US assets, approx. $11.5 billion USD USD denominated ABCPConduit B (A1/P1) US and European assets, approx. $11.4 billion USD USD, GBP and EUR denominated ABCP Conduit C (A1+) Australian assets, approx. $2.1 billion USD AUS denominated ABCP Conduit D (A1+/P1) Australian assets, approx. $3.8 billion USD AUS and USD (through USD funding leg) denominated ABCP Total # Asset Pools: 797 Country of Asset Origin:

4ABCP Conduits Asset Composition US RMBS Statistics: All AAA Rated WA* FICO: 714 at origination WA LTV: 74.8% at origination AUS RMBS Statistics: 97% Rated AA or Better 99.5% insured with mortgage insurance UK RMBS Statistics: Nearly all exposure is to owner-occupied homes with prime quality obligors 69% rated at least A EUR RMBS Statistics: 85% AAA Rated 99.5% rated at least A RMBS – Residential Mortgage Backed Securities WA – Weighted Average FICO – Credit Score from Fair Isaac Co. LTV – Loan-to-Value ratio * Key components of “Other” include Trade Receivables, CLOs, Business/Commercial Loans, and other instruments. No individual asset class represents more than 2% of total portfolio assets, except Trade Receivables at 3%.

5ABCP Conduits Financial Impact The Weighted Average Maturity of State Street-sponsored conduit ABCP was approximately 20 days on December 31, 2007, as compared with approximately 15 days on September 30, 2007, and approximately 23 days as of December 31, 2006State Street held the following amount of State Street-sponsored ABCP on State Street’s balance sheet:December 31, 2007: $1.84 million September 30, 2007: $730 million (mostly associated with the two Australian conduits) Maximum held during the quarter: $1.25 billion (mostly associated with the two Australian conduits) State Street would have recognized an extraordinary after-tax loss of approximately $530 million had State Street Bank and Trust consolidated onto its balance sheet on December 31, 2007, all of the assets of State Street-sponsored conduits at fair value (1) The estimated after-tax loss of $530 million assumes: All four State Street-sponsored conduits, with combined assets of approximately $29 billion at December 31, 2007, are consolidated onto the balance sheet of State Street Bank and Trust on December 31, 2007; Assets of the conduits are recorded at fair value. Fair value is based on State Street’s application of its pricing policies for conduit assets, consistently applied; Marginal tax rate of 40%.

6ABCP Conduits Impact to Financial Ratios Estimated pro-forma impact to State Street Corporation’s and State Street Bank and Trust’s capital ratios had State Street Bank and Trust consolidated onto its balance sheet on December 31, 2007, all of the assets of the State Street-sponsored conduits at fair value (2): The estimated pro-forma impact to State Street Corporation’s and State Street Bank and Trust’s capital ratios assumes: All four State Street-sponsored conduits, with combined assets of approximately $29 billion at December 31, 2007, are consolidated onto the balance sheet of State Street Bank and Trust on December 31, 2007; Assets of the conduits are recorded at fair value, as described in footnote (1) on slide 4; Assumes no management action taken as it relates to capital.

7ABCP Conduits Asset Sourcing and Approval Conduit assets are originated through public security purchases and existing client relationships All assets and associated State Street liquidity facilities are approved by State Street’s Enterprise Risk Management (ERM), either through a formal review at the time of purchase or through inclusion on a list of pre-approved transactions/structures A majority of assets are either explicitly rated or reviewed by rating agencies (Moody’s, Standard & Poors) Conduits subject to significant internal controls Dedicated surveillance team responsible for monthly monitoring of asset performanceRobust liability management oversight, including economic and market updates, and weekly management meetings Dedicated administration team responsible for asset and liability administration, annual audits and accounting policy

8 Conduit Oversight and Approval ERM Oversight ERM establishes prudential limits and diversification requirements ERM monitors asset performance monthly through management’s surveillance reporting Key Credit Characteristics Strong overall asset quality supported by diversified pools of relatively homogenous financial obligations No material concentration risk among issuers or servicers No exposure to subprime mortgages and no exposure to asset-backed collateralized debt obligations (CDOs) Rating Quality Transactions that carry external ratings are mapped to State Street’s internal credit risk rating scale, unless an override is deemed appropriate by Enterprise Risk Management Transactions without external ratings are rated internally using proprietary models that are subject to ERM oversight and compliance with State Street’s Model Risk Policy and Guidelines

9 Key Credit Characteristics – US RMBSExposure to US RMBS totals $4.2BN, all of which is rated AAA Collateral pools are comprised of mostly floating rate, Alt-A loans and Home Equity Lines of Credit (HELOCs).  Underlying pool characteristics are strong for RMBS (WA FICO score of 714, and WA LTV of 74.8%, at origination) $2.3BN of this exposure (56%) represents “super-senior” positions in RMBS, with 2-5X the initial enhancement levels required to achieve an external rating of AAA/Aaa$1.5BN in HELOC exposure (36%), all of which is insured by one of six bond insurers with external ratings of AAA/Aaa The remaining $328MM of US RMBS exposure (8%) represents well-seasoned issues externally rated AAA that exhibit strong underlying pool characteristics (WA FICO score of 720, and a WA LTV of 68%, at origination)

10 Exposure to AUS RMBS totals $4.7BN (US Equiv.), greater than 97% of which is externally rated AA or better, and all of which is externally rated A or better Collateral consists of diversified pools of prime obligors supported by private mortgage insurance policies (99.5%) that cover principal and interest shortfalls on defaulted / foreclosed loans Greater than 95% of mortgage insurance providers have external ratings of AA or better. The balance are captive insurers, all of which are rated investment grade Average loan-to-value ratio of 68% on security purchase date Average loan size of A$168,000 (US$150,000) on security purchase date Key Credit Characteristics – AUS RMBS* *Includes AUD-denominated assets AUD Rate of Exchange: 0.88

11 Key Credit Characteristics – UK RMBS* Exposure to UK RMBS totals $2.3BN, with 22% AAA, 21% AA, 26% A, and 31% BBB Majority of exposure is to UK Master Trusts from AA rated top-tier issuersCollateral consists of diversified pools of conforming loans to prime obligors with a range from 62% and not higher than 78% weighted average LTV’s at origination Nearly all exposure is to owner occupied homes with prime quality obligors * Includes GBP, EUR and USD-denominated assets GBP Rate of Exchange: 1.99 EUR Rate of Exchange: 1.46

12 Key Credit Characteristics – European RMBS* Exposure to European RMBS totals $4.7BN, with 84.8% AAA, 8.3% AA, 6.5% A, and 0.4% BBBCollateral consists of diversified pools of prime mortgage loans Sellers/Servicers are well-rated European banks Purchase of first European RMBS occurred in 2000 Assets originated across 8 jurisdictions*Includes EUR-denominated assets EUR Rate of Exchange: 1.46

13 Key Credit Characteristics – US Student Loans Exposure to US Student Loans totals $3.33BN 83.3%, or $2.78BN, are backed by Federal Family Education Loan Program (FFELP) loans carrying at least a 97% guarantee by the US government Of the $2.78BN FFELP loan transactions, $2.23BN are senior classes, with the vast majority rated AAA, while the remaining $545.5MM represents subordinated classes ($461.0MM rated at least AA and $84.5MM rated at least A) 16.7% or $556.0MM are backed by diversified pools of private student loans (for borrowers primarily attending 4-year schools or graduate schools), all of which are AAA rated Of the $556.0MM of private loan transactions, $306.6MM or 55.1% are wrapped by a monoline bond insurer; the remaining $249.4MM are senior classes

14 Key Credit Characteristics – Credit Cards Exposure to Credit Cards totals $2.02BN, with $1.63BN in the US and $393.6MM in Europe 62.4% of Credit Cards rated at least A, with 24.3% of assets rated AAASignificant experience investing in Credit Card asset class Strong sponsors / high quality servicers Key Credit Characteristics – Auto/Equipment Loans Exposure to Auto/Equipment Loans totals $2.75BN, with $863.1MM in the US and the remainder in Europe and Australia 47.5% of Auto/Equipment Loans rated at least A, with 28.3% rated AAA Significant experience in Auto/Equipment asset class First auto transaction closed in 1993