Skip navigation
Watchlist Sponsored By :

Current DateTime: 01:01:39 14 Oct 2008
LinksList Documentid: 24355697

Current DateTime: 01:02:40 14 Oct 2008
LinksList Documentid: 24890560
  • Risk & You

      It's a risky world out there. Whether it's investment or retirement, career or home you can take steps to lower your risk profile.

  • Wall Street In Crisis

      With shock after shock to the world's financial system, the credit crunch continues to drive a major reconfiguration of the Wall Street landscape.

  • Protecting Your Portfolio

      Credit Crunch. Recession. Bear Market. There's a triple threat out there for investors. Here's a guide to managing your money.

State Street Shares Rattled by Credit Worries
By Reuters | 28 Aug 2007 | 11:50 AM ET
Text Size

State Street
State Street
shares [STT  Loading...      ()   ] fell sharply Tuesday on worries about the company's more than $20 billion in commitments to asset-backed commercial paper programs.

State Street  recently said in U.S. regulatory filings that it administers four, third-party owned asset-backed commercial paper programs, or conduits. Banks rely heavily on these conduits for cheap, short-term funding, but if they cannot continue to access this debt they could face a credit squeeze.

At the end of June, State Street disclosed nearly $29 billion in off-balance-sheet conduit assets. The Boston-based bank does not hold any equity interest in the conduits.

However, State Street is exposed to the conduits because it provides back-up lines of credit to them. Its commitment under liquidity asset purchase agreements and back-up lines of credit totaled about $28 billion at the end of June, according to the company's financial statements.

State Street has said potential losses, if any, from these conduits' activities are not expected to have a material impact on its results. The company was not available for comment.

Copyright 2008 Reuters. Click for restrictions.

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis