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): November 10, 2009

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:

¨ Written communications pursuant to Rule 425 under the Securities Act

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act

Item 7.01. Regulation FD Disclosure.

On November 10, 2009 at 9:40 a.m. (EST), Ronald E. Logue, Chairman and Chief Executive Officer of State Street Corporation, Edward J. Resch, State Street’s Executive Vice President and Chief Financial Officer and Joseph L. Hooley, President and Chief Operating Officer, will provide a presentation at the Bank of America Merrill Lynch Banking and Financial Services Investor Conference. The slides and other information that Mr. Logue, Mr. Resch and Mr. Hooley will present are furnished herewith as Exhibits 99.1 and 99.2 and are incorporated herein by reference. The presentation will be accessible, in listen-only mode, on State Street’s investor relations home page, at www.statestreet.com/stockholder. Recorded replays of the presentation will be available on the web site beginning at 12:00 p.m. (EST) that day.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Slides for the presentation by Mr. Logue, Mr. Resch and Mr. Hooley at the Bank of America Merrill Lynch Banking and Financial Services Investor Conference on November 10, 2009.
99.2	Appendix: Reconciliations of reported results to operating-basis results, and of tangible common equity and tier 1 common capital ratios.

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/    DAVID C. PHELAN
Name:	David C. Phelan
Title:	Executive Vice President and General Counsel

Date: November 10, 2009

EXHIBIT INDEX

Exhibit No.	Description
99.1	Slides for the presentation by Mr. Logue, Mr. Resch and Mr. Hooley at the Bank of America Merrill Lynch Banking and Financial Services Investor Conference on November 10, 2009.
99.2	Appendix: Reconciliations of reported results to operating-basis results, and of tangible common equity and tier 1 common capital ratios.

EX-99.1

The Foundation for Future Growth

2009 Banking and

Financial Services Investor Conference

Hosted by Bank of America Merrill Lynch

10 November 2009

Exhibit 99.1

Reminder

2

This presentation contains forward-looking statements as defined by United States securities laws, including statements about our goals and expectations

regarding our business, financial condition, results of operations and strategies, the financial and market outlook, governmental and regulatory initiatives and developments

and the business environment. 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 our expectations or beliefs as of any date subsequent to the date of this release.

Important factors that may affect future results and outcomes include, but are not limited to: financial market disruptions and the economic recession, whether in

the U.S. or internationally, and monetary and other governmental actions designed to address such disruptions and recession, including actions taken in the U.S. and

internationally to address the financial and economic disruptions that began in 2007; increases in the potential volatility of, or declines in the levels of, our net interest

revenue, changes in the composition of the assets on our consolidated balance sheet and the possibility that we may be required to change the manner in which we fund

those assets; the financial strength and continuing viability of the counterparties with which we or our customers do business and to which we have investment, credit or

financial exposure; the liquidity of the U.S. and international securities markets, particularly the markets for fixed-income securities, and the liquidity requirements of our

customers; the credit quality, credit agency ratings, and fair values 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 income statement recognition of an impairment loss; the maintenance of credit agency ratings for our

debt and depository obligations as well as the level of credibility of credit agency ratings; the possibility of our customers incurring substantial losses in investment pools

where we act as agent and the possibility of further general reductions in the valuation of assets; our ability to attract deposits and other low-cost, short-term funding;

potential changes to the competitive environment, including changes due to the effects of consolidation, extensive and changing government regulation and perceptions of

State Street as a suitable service provider or counterparty; the level and volatility of interest rates and the performance and volatility of securities, credit, currency and other

markets in the U.S. and internationally; our ability to measure the fair value of the investment securities on our consolidated balance sheet; the results of litigation,

government investigations and similar disputes and, in particular, the effect of current or potential proceedings concerning State Street Global Advisors’, or SSgA’s, active

fixed income strategies and other investment products, including the potential for monetary damages and negative consequences for our business and our reputation arising

from the previously reported “Wells” notice we received from the SEC; the enactment of legislation and changes in regulation and enforcement that impact us and our

customers; adverse publicity or other reputational harm; our ability to pursue acquisitions, strategic alliances and divestures, finance future business acquisitions and obtain

regulatory approvals and consents for acquisitions; the performance and demand for the products and services we offer, including the level and timing of withdrawals from

our collective investment products; our ability to grow revenue, attract and retain highly skilled people, control expenses and attract the capital necessary to achieve our

business goals and comply with regulatory requirements; our ability to control operating risks, information technology systems risks and outsourcing risks, the possibility of

errors in the quantitative models we use to manage our business and the possibility that our controls will fail or be circumvented; the potential for new products and services

to impose additional costs on us and expose us to increased operational risk, and our ability to protect our intellectual property rights; changes in government regulation or

new legislation, which may increase our costs, expose us to risk related to compliance or impact our customers; changes in accounting standards and practices; 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.

While, as previously announced, State Street has determined it is appropriate to increase its reserve for the active fixed-income matter, State Street has not

entered into a settlement agreement with the SEC or any other regulator at this time and there can be no assurance that State Street will do so in the future.  If such

settlement discussions are not successful and the SEC or other regulators were to pursue an enforcement action, they would likely seek monetary or other penalties or

remedies, which may be greater than such reserve.  There can be no assurance that State Street will be able to agree upon terms of a settlement with these regulatory

authorities and, if the Company were unable to do so and the SEC or other regulatory authorities were to commence an enforcement proceeding, such enforcement

proceeding, and the outcome thereof, may have a material adverse effect on the Company’s business.  

Other important factors that could cause actual results to differ materially from those indicated by any forward-looking statements are set forth in our 2008 Annual

Report on Form 10-K, our Current Report on Form 8-K dated May 18, 2009, and our subsequent SEC filings. We encourage investors to read these filings, particularly the

sections on Risk Factors, for additional information with respect to any forward-looking statements and prior to making any investment decision. The forward-looking

statements contained in this presentation speak only as of the date hereof, November 10, 2009, and we do not undertake efforts to revise those forward-looking statements

to reflect events after this date.

The Foundation for Future Growth

Agenda

Capital: Reviewing the Investment Portfolio

Costs: Continuous Improvement

Focusing on the Foundation

Customers: Benefiting From Relationships

3

Focusing on the Foundation

Ronald E. Logue

Chairman and Chief Executive Officer

4

The Foundation for Future Growth

Focusing on the Foundation

Strengthened

Capital

•

Passed Federal Reserve stress test

•

Raised $2.3B in equity capital

•

Repaid TARP and warrants

•

Executed TCE Improvement Plan

Reduced Costs

•

Reduced headcount by 8%*

•

Reduced 2009 performance-based incentive compensation

•

Streamlined operations

Deepened

Customer

Relationships

•

Added $626B in assets to be serviced YTD 2009

•

Added $119B new business YTD 2009 at SSgA

•

Introduced new products and services

2009 Actions Will Have a Multi-Year Effect

*Compared to December 2008

5

The Foundation for Future Growth

Focusing on the Foundation: Capital

Targets

State Street Corp

Q1  ‘09

Q2 ‘09

Q3 ‘09

Tier 1 Leverage

5%*

10.44%

7.26%

8.02%

Tier 1 Capital

6%*

19.13%

14.53%

15.27%

Tier 1 Common Ratio

4%**

14.75%

12.57%

13.30%

Total Capital

10%*

20.49%

15.87%

16.53%

Tangible Common Equity

4.25% -

4.75%***

5.87%

4.96%

5.59%

TCE / RWA****

N/A

8.15%

8.52%

10.25%

Capital Structure (at period end)

Among the Highest Capital Ratios in the Industry

6

For a description, and as applicable, a reconciliation of the tier 1 common, the tangible common equity, and the TCE/RWA ratio,

see the appendix.

*Minimum “Well Capitalized” as defined by Federal regulations: Tier 1 Leverage applies to State Street Bank only.

**Target Minimum ratios as defined by the Federal Reserve stress test. 

***Target ratio as defined by State Street.

****Ratio as defined by Moody’s.

The Foundation for Future Growth:

Focusing on the Foundation: Costs

3,144

2,246

470

493

425

341

360

798

587

499

0

600

1,200

1,800

2,400

3,000

3,600

4,200

4,800

5,400

9 months 2008

9 months 2009

Other

Occupancy

Transaction Processing

Info Systems

Salaries & Benefits

-26%

$M

-15%

-29%

22% Expense* Reduction YTD 2009 vs. YTD 2008

5,252

4,111

7

*Based on “operating- basis expenses” as reconciled to reported expenses in appendix

The Foundation for Future Growth

Focus on the Foundation: Customers

Business

YTD New Wins¹

($ billions)

Installed thru Q3

($ billions)

To be installed

($ billions)

US Asset Servicing

$388.7

$332.1

$56.6

Non-US Asset Servicing

$237.6

$166.4

$71.2

Total Asset Servicing

$626.3

$498.5

$127.8

US Asset Management

$60.8

$39.0

$21.8

Non-US Asset Management

$58.0

$34.2

$23.9

Total Asset Management

$118.8

$73.2

$45.6

1

Assets as of 9/30/09

Continued Momentum in Core Business

8

Capital: Reviewing the Investment

Portfolio

Edward J. Resch

Chief Financial Officer

9

The Foundation for Future Growth

Capital: Reviewing the Investment Portfolio

Balance Sheet Position

Disciplined Investment in Highly Rated Securities

*Excludes $22B on deposit with central banks

All data as of 9/30/09 unless otherwise noted.

10

•

Total balance sheet: $141B* of which $98B is in investment portfolio

–

80% rated AAA/AA

•

Re-investment strategy

–

Invested about $14B , the vast majority of which are AAA-rated agency mortgage-backed

and select asset backed securities in Q3 2009

•

Assets have an average price of $101.50 and an average yield of 3.33% and an average

duration of 2.24 years

•

Expectations:

–

Intend to re-invest about $3B in Q4 2009 as $4.5B matures/pays down

–

Duration of investment portfolio at 12/31/09 to be about 1.2 years

–

Duration gap on balance sheet at 12/31/09 to be about 0.2 years

–

Former

conduit

assets

to

generate

about

$200M

in

Q4

2009

and

$5B

of

discount

accretion over life of the assets

–

To lower wholesale funding over time

–

To remain cautious and build capital in an uncertain environment

The Foundation for Future Growth

Capital: Reviewing the Investment Portfolio

•

Unrealized after-tax mark-to-market loss on investment portfolio at 9/30/09 is $2.98B

–

Unrealized after-tax loss continues to further improve in fourth quarter: $2.39B as of 11/04/09

–

As of 11/04/09 compared with 12/31/08, the unrealized after-tax loss has improved 62%

–

OTTI

taken:

approximately

$300

million

(2007

–

2009

YTD)

•

Passed Federal Reserve’s stress test under “more adverse”

scenario in May 2009

•

Constructed investment portfolio using conservative principles

•

All 9,735 CUSIPs

are current as to principal and interest

•

Very modest interest-rate risk position

–

Slowly rising rates (25 bps per quarter) is expected to have a minimal impact on NIR over the next

twelve months

We Remain Comfortable with our Investment Portfolio

Investment Portfolio is Well-positioned for the Future

11

The Foundation for Future Growth

Capital: Reviewing the Investment Portfolio

•

Expect balance sheet to be slightly smaller, compared to Q3 2009, by end of 2009

•

Continue to manage Investment Portfolio opportunistically and conservatively

•

Started re-investment plan in 2H 2009

•

Continue to build capital position until regulatory environment becomes clear

•

In the fourth quarter we will maintain our modest interest-rate risk position

•

Achieve TCE of 6.10% by end of 2009, well above our target range

of 4.25% -

4.75%

Fourth Quarter 2009 Plan

Maintain a Strong Capital Position with Selective Re-Investment Strategy

12

Costs:

Continuous Improvement

Customers:

Benefiting From Relationships

Joseph L. Hooley

President and Chief Operating Officer

13

The Foundation for Future Growth

Costs: Continuous Improvement

•

22% year-over-year decline in operating expense during

first nine months of 2009*

•

De-layered organization in early 2009

•

Maximizing efficiency in key processes (LEAN)

•

Centralizing standard processes (COEs)

•

Building capacity in Asia and Eastern Europe

–

Expanded presence in Poland

–

Establishing fund accounting capabilities in China

•

Restructuring global real estate footprint

•

Driving annual increases in global procurement savings

Structural

Expense

Reduction

*Based on “operating-basis”

expenses—see appendix for reconcilement.

14

Growing complexity in

investment vehicles

Increased demand for

outsourcing

The Foundation for Future Growth

Customers: Benefiting From Relationships

Trends

Trends

15

Asset pools

growing

Industry consolidation

Flight to quality

Increasing regulatory

oversight

Globalization

The Foundation for Future Growth

Customers: Benefiting From Relationships

•

Higher equity markets raising assets under administration

and assets under management (3/31/09 to 9/30/09)

–

AUA up 19%

–

AUM up 24%

•

Creating opportunities in passive strategies and ETFs

–

ETF AUM grew by 29% Q3 2009 vs. Q1 2009; 8 new funds

launched YTD

–

Recent passive mandate wins include: Arizona Public

Safety Retirement System; Royal Borough of Kingston

upon Thames Pension Fund in London and The

Pensioenfonds

Horeca

& Catering (PH&C) 

•

Increased flows into offshore and domestic long-term funds

Asset Pools

Growing

State Street

Trend

16

The Foundation for Future Growth

Customers: Benefiting From Relationships

•

Investment managers consolidating providers

–

Leading servicer of asset management industry

•

42% market share serving US mutual funds¹

–

Most comprehensive product range in industry including

back office, middle office and transfer agency

•

53% market share in middle office outsourcing²

•

Increasing capital requirements expected to drive custody

industry consolidation

–

Demonstrated track record consolidating acquisitions

•

Customer retention rate of more than 90% from

large transactions

Industry

Consolidation

State Street

Trend

1

ICI, August 31, 2009

2

Greensted Report, Spring 2009

17

The Foundation for Future Growth

Customers: Benefiting From Relationships

•

Hedge fund customers seeking more transparency and an

independent third-party servicer

•

56 new mandates YTD

–

Private equity servicing AUA of $145 billion as of 9/30/09

–

Hedge fund servicing AUA of $276 billion as of 9/30/09

•

Growth in demand for Collateral Management, OTC

Derivatives Processing and Risk and Compliance Analytics

Increasing

Regulatory

Oversight

State Street

Trend

18

The Foundation for Future Growth

Customers: Benefiting From Relationships

•

Comprehensive global footprint in 27 countries with

common systems infrastructure

•

Increasing demand for multi-national bundled solutions

•

Broad-based pipeline across North America, Europe and

Asia/Pacific

–

New customers include QIC, Fonchim, AP Fonden, M&G

•

Evaluating acquisition opportunities, especially in Europe

Globalization

State Street

Trend

19

The Foundation for Future Growth

Customers: Benefiting From Relationships

•

Significant product and industry leadership

–

No. 1 in mutual fund administration (Global Custodian)

–

No. 1 manager of US institutional tax-exempt, DB and

endowment assets (P&I)

•

Cross sell strength continues

–

As of 9/30/09

•

State Street’s top 100 customers buy 13.7 State

Street products, up from 13.2 a year ago

•

State Street’s top 1000 customers buy 8.2 State

Street products, up from 7.9 a year ago

–

Customer deposits drive excess liquidity

•

Supports passive strategies and growth in ETFs

Flight to Quality

State Street

Trends

20

The Foundation for Future Growth

Strengthened

Capital

•

Provides future flexibility

–

Dividend re-instatement

–

Share repurchases

–

Selective acquisitions

Reduced Costs

•

Ongoing focus

•

Expect to continue to restrain

–

Headcount

–

Discretionary spend

Deepened

Customer

Relationships

•

Adding new customers globally

•

Expanding “share of wallet”

with existing customers

•

Expanding the base of revenue streams

Well Positioned for Long-term Growth

21

22

EX-99.2

Appendix

Exhibit 99.2

Operating-Basis Financial Information and

Calculation of Capital Ratios

This presentation includes financial information presented on a GAAP basis as well as on an operating basis. Management measures and compares certain

financial information on an operating basis, as it believes that this presentation supports meaningful comparisons from period to period and the analysis of

comparable financial trends with respect to State Street’s normal ongoing business operations. Management believes that operating-basis financial information,

which reports revenue from non-taxable sources on a fully taxable-equivalent basis and excludes the impact of revenue and expenses outside of the normal

course of business, facilitates an investor’s understanding and analysis of State Street’s underlying financial performance and trends in addition to financial

information prepared in accordance with GAAP. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to,

financial measures determined in accordance with GAAP. A reconciliation of operating-basis results to GAAP results is provided in this appendix. 

Management believes that the use of other non-GAAP financial measures in the calculation of identified capital ratios is useful to understanding State Street’s

capital position and of interest to investors. Below is a description of, and other information with respect to, the capital ratios referenced in this presentation. 

The tier 1 risk-based capital, or tier 1 capital, and tier 1 leverage ratios, as applicable, are each calculated in accordance with applicable bank regulatory

requirements and, as permitted, exclude the impact of commercial paper purchased under the Federal Reserve Bank of Boston’s AMLF. 

The tier 1 risk-based common, or tier 1 common, ratio is calculated by dividing (a) tier 1 capital less non-common elements including qualifying perpetual

preferred stock, qualifying minority interest in subsidiaries and qualifying trust preferred securities, by (b) risk-weighted assets, which assets are calculated in

accordance with applicable bank regulatory requirements. The tier 1 common ratio is not required by GAAP or on a recurring basis by bank regulations.

However, this ratio was used by the Federal Reserve in connection with its stress test administered to the 19 largest U.S. bank holding companies under the

SCAP, the results of which were announced on May 7, 2009. Although we understand that the Federal Reserve does not intend to prospectively require

calculation of the tier 1 common ratio, due to the recent timing of the SCAP, management is currently monitoring this ratio, along with the other capital ratios

described in this press release, in evaluating State Street’s capital levels and believes that, at this time, the ratio may be of interest to investors. 

Reconciliations with respect to unaudited tier 1 common capital as of September 30, 2009, June 30, 2009 and March 31, 2009 are provided in this appendix. 

The ratio of tangible common equity to adjusted tangible assets, or TCE ratio, is calculated by dividing total common shareholders’ equity by consolidated total

assets, after reducing both amounts by goodwill and other intangible assets net of related deferred taxes. Total assets reflected in the TCE ratio also exclude

commercial paper purchased under the AMLF and cash balances on deposit at the Federal Reserve Bank and other central banks in excess of required reserves.

The TCE ratio is not required by GAAP or by bank regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels.

Since there is no authoritative requirement to calculate the TCE ratio, our TCE ratio is not necessarily comparable to similar capital measures disclosed or used

by other companies in the financial services industry. Tangible common equity and adjusted tangible assets are non-GAAP financial measures and should be

considered in addition to, not as a substitute for or superior to, financial measures determined in accordance with GAAP. Reconciliations with respect to the

calculation of the unaudited TCE ratio as of September 30, 2009, June 30, 2009 and September 30, 2008 are provided in this appendix. 

The ratio of tangible common equity to risk-weighted assets, or TCE/RWA ratio, is calculated by dividing total common shareholders’ equity (reduced by goodwil

and other intangible assets net of related deferred taxes) by risk-weighted assets (determined in accordance with applicable bank regulatory requirements). As

permitted by bank regulations, risk-weighted assets exclude commercial paper purchased under the AMLF. The TCE/RWA ratio is not required by GAAP or by

bank regulations, but is a metric used by management to evaluate the adequacy of State Street’s capital levels. Since there is no authoritative requirement to

calculate the TCE/RWA ratio, our TCE/RWA ratio is not necessarily comparable to similar capital measures disclosed or used by other companies in the financial

services industry. Tangible common equity is a non-GAAP financial measure and should be considered in addition to, not as a substitute for or superior to,

financial measures determined in accordance with GAAP. Reconciliations with respect to the calculation of the unaudited TCE/RWA ratio as of September 30,

2009, June 30, 2009 and September 30, 2008 are provided in this appendix. 

STATE STREET CORPORATION

RECONCILIATION OF REPORTED RESULTS TO OPERATING-BASIS RESULTS

(Dollars in millions, except per share amounts)	Nine Months Ended September 30, 2008									Nine Months Ended September 30, 2009									% Change
	Reported Results			Adjustments			Operating Results			Reported Results			Adjustments			Operating Results			YTD 2008 vs YTD 2009
Total fee revenue		5,866						5,866			4,409						4,409		(24.8	)%
Net interest revenue		1,807			166	(1)		1,973			1,867			87			1,954		(1.0	)
Gains (Losses) related to investment securities, net:		(3	)		—			(3	)		84			—			84
Gain from sale of CitiStreet interest, net of exit and other associated costs		350			(350	)(2)
Total revenue		8,020			(184	)		7,836			6,360			87	(6)		6,447		(17.7	)
Provision for loan losses		—			—			—			114			—			114
Total expenses		5,540			(288	)(3)		5,252			4,401			(290	)(7)		4,111		(21.7	)
Income before income tax expense and extraordinary loss		2,480			104			2,584			1,845			377			2,222
Income tax expense		925			(72	)(4)		853			540			74	(8)		614
Tax-equivalent adjustment		—			76	(5)		76			—			94	(5)		94
Income before extraordinary loss		1,555			100			1,655			1,305			209			1,514
Extraordinary loss, net of tax		—			—			—			(3,684	)		3,684	(9)		—
Net income (loss)	$	1,555		$	100		$	1,655		$	(2,379	)	$	3,893		$	1,514		(8.5	)
Adjustments to net income (loss):
Prepayment of preferred stock discount	$	—		$	—		$	—		$	(106	)	$	106		$	—
Dividend on preferred stock		—			—			—			(46	)		—			(46	)
Accretion of preferred stock discount		—			—			—			(11	)		—			(11	)
		—			—			—			(163	)		106			(57	)
Net income before extraordinary loss available to common shareholders	$	1,555		$	100		$	1,655		$	1,142		$	315		$	1,457
Net income (loss) available to common shareholders	$	1,555		$	100		$	1,655		$	(2,542	)	$	3,999		$	1,457		(12.0	)
Diluted earnings per common share before extraordinary loss	$	3.78		$	.25		$	4.03		$	2.45		$	.68		$	3.13		(22.3	)
Diluted earnings (loss) per common share		3.78			.25			4.03			(5.45	)		8.58			3.13
Return on common equity before extraordinary loss		16.8	%		1.0	%		17.8	%		12.8	%		3.5	%		16.3	%

⁽¹⁾ Represents tax-equivalent adjustment of $76 million, plus a $98 million reduction associated with SILO leasing transactions, less $8 million of net interest revenue related to the AMLF.

⁽²⁾ Represents gain on the sale of CitiStreet interest, net of exit and other associated costs, which State Street divested on July 1, 2008.

⁽³⁾ Represents merger and integration costs recorded in connection with the acquisition of Investors Financial and a charge to provide for estimated net exposure to customers on an indemnification obligation associated with collateralized repurchase agreements.

⁽⁴⁾ Represents $3 million of income tax expense related to the AMLF, $39 million of income tax expense related to the reserve for SILO’s and $140 million of income tax expense related to the gain from sale of CitiStreet interest, net of $30 million of income tax benefit related to merger and integration costs for the acquisition of Investors Financial, and $80 million of income tax benefit related to the provision for potential secured exposure associated with a collateralized repurchase agreement.

⁽⁵⁾ Represents tax-equivalent adjustment, which is not included in reported results.

⁽⁶⁾ Represents tax-equivalent adjustment of $94 million, less $7 million of net interest revenue related to the AMLF.

⁽⁷⁾ Represents merger and integration costs recorded in connection with the acquisition of Investors Financial and a reserve to address legal exposure associated with certain active fixed-income strategies at State Street Global Advisors.

⁽⁸⁾ Represents $3 million of income tax expense related to the AMLF, net of $77 million of income tax benefit related to merger and integration costs and the legal exposure associated with certain active fixed-income strategies at State Street Global Advisors.

⁽⁹⁾ Represents extraordinary loss related to the consolidation of the asset-backed commercial paper conduits on May 15, 2009 onto State Street’s balance sheet.

STATE STREET CORPORATION

Tangible Common Equity and Tier 1 Common Ratios - Reconciliations

As of Period End

The table set forth below presents the calculations of State Street’s ratios of tangible common equity to total tangible assets and to total risk-weighted assets, and its ratio of tier 1 common capital to total risk-weighted assets.

		For the periods ended
(Dollars in millions)		September 30, 2009			June 30, 2009			March 31, 2009
Consolidated Total Assets			163,277		$	153,421		$	142,144
Less:
Goodwill			4,554			4,547			4,493
Other intangible assets			1,845			1,790			1,809
AMLF investment securities			—			300			740
Excess reserves held at central banks			22,125			20,449			29,963
Adjusted assets			134,753			126,335			105,139
Plus:
Deferred tax liability			524			532			540
Total tangible assets	A	$	135,277		$	126,867		$	105,679
Consolidated Total Common Shareholders’ Equity		$	13,440		$	12,103		$	11,969
Less:
Goodwill			4,554			4,547			4,493
Intangible assets			1,845			1,790			1,809
Adjusted equity			7,041			5,766			5,667
Plus deferred tax liability			524			532			540
Total tangible common equity	B	$	7,565		$	6,298		$	6,207
Tangible common equity ratio	B/A		5.59	%		4.96	%		5.87	%
Ratio of tangible common equity to total risk-weighted assets	B/D		10.25	%		8.52	%		8.15	%
Tier 1 Capital		$	11,271		$	10,740		$	14,567
Less TARP preferred stock			—			—			1,889
Less trust preferred securities			1,450			1,450			1,450
Tier 1 common capital	C	$	9,821		$	9,290		$	11,228
Total risk-weighted assets	D	$	73,823		$	73,918		$	76,138
Ratio of tier 1 common capital to total risk-weighted assets	C/D		13.30	%		12.57	%		14.75	%