State Street Falls as Much as 9.9% as Fees Come Under Pressure
(Bloomberg) -- State Street Corp. plunged almost 10 percent after the company said in an earnings conference call that its fees are under pressure as investors cut risk.
The shares were down 8.4 percent, the most in about three months, at 10:52 am in New York trading. The Boston-based bank’s earnings and revenues in the third quarter also fell short of analysts’ estimates.
“At the broadest level the derisking which began in the second quarter has only continued,” Chief Executive Officer Jay Hooley said on the call with investors Friday. Hooley said the pressure was most intense in Europe and in the emerging markets.
Hooley’s comments echoed those made by BlackRock Inc. CEO Larry Fink on Oct. 16. Fink blamed his company’s weak flows on nervous investors.
“They don’t understand the political instabilities,” he said. “They’re worried about global trade.”
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