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At Bostons State Street Corp., Custodial-Banking Customer Becomes A Rival.(Knight Ridder/Tribune Business News)
Knight Ridder/Tribune Business News, November, 2000 by Nelson, Scott Bernard
Nov. 21--For more than two decades, Boston's State Street Corp. has posted big numbers by controlling a significant corner of the obscure, but hardly insignificant, world of custodial banking.
Pension funds and mutual funds take in billions of dollars worth of their clients' money each year to invest, but they don't keep the cash in house. They turn that responsibility over to custodial banks willing to hold the stock and bond certificates, account for all the dollars changing accounts, and generate the necessary paperwork.
The business is boring but very, very profitable. Since 1995, State Street's market value is up fivefold, to $19.3 billion; in the last eight years, its assets under custody have grown sixfold, to $6.2 trillion.
With all...
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