With Pennsylvania*** about to hold a primary in which State Street's public pension plan pay for play tactics will be a factor, much more will be revealed here soon.
Public pension plan participants whose plans are managed and/or serviced by State Street may wish to demand fuller transparency into how your public officials selected State Street.
Especially given the catastrophic losses that have led many clients to bring class action lawsuits against State Street, many state plans will soon have to decide whether or not to seek recovery on behalf of their plan participants. Knowing that plan participants expect action, more state plans are likely to seek recovery.
The current management of State Street is clearly concerned that these ongoing lawsuits (and the attendant revelations of new facts regarding current management's practices) will bring about mass public pension plan client defections. In fact, State Street's own home state of Massachusetts recently terminated a contract with the company.
To attempt to combat the growing number of public pension plan defections, this month the company announced that it has hired two new slick marketing gurus to try to persuade public plans to stay put.
State Street Adds Another Two Executives to Growing Us Public Funds Team
BOSTON--(BUSINESS WIRE)--March 04, 2008 State Street Corporation (NYSE: STT), the world's leading provider of financial services to institutional investors, today announced two new appointments who will be responsible for continued outreach to the US public funds market. Mark Doherty has been appointed vice president of State Street's institutional investor sales team and Michael Pettit has been named vice president of client management.
Doherty, who will be based in New York, joins State Street from Northern Trust, where he was senior sales representative responsible for local and national government entities and insurance companies. Prior to this role, he was a senior sales representative and relationship manager with Bank of New York for more than three years.
Prior to joining State Street, Pettit was a senior relationship manager at Northern Trust covering public fund and Taft Hartley pension and health plans for more than four years. Previous to this role, he spent more than a decade with Bankers Trust/Deutsche Bank in the client services group. Pettit will be based in Los Angeles. ...
State Street is the leading provider of services to the US public fund market, providing solutions for more than 40 percent of the industry. Further building on its team of experts, State Street announced the appointment of Catherine Williams to the Chicago office of State Street's US public fund sales team in March of 2007. Williams also joined State Street from Northern Trust.
State Street Corporation (NYSE: STT) is the world's leading provider of financial services to institutional investors including investment servicing, investment management and investment research and trading. With $15.3 trillion in assets under custody and $2 trillion in assets under management at December 31, 2007, State Street operates in 26 countries and more than 100 geographic markets worldwide. For more information, visit State Street's web site at www.statestreet.com.
CONTACT: State Street Corporation Carolyn Cichon, 1-617-664-8672
For ease of reference for concerned public pension plan participants (please submit comments to this blog entry for any missing plans):
* California public employees and teachers
* District of Columbia
* New Hampshire
* New Jersey
* New Mexico
* New York
* North Carolina
* North Dakota
* Pennsylvania*** public employees and teachers
* Rhode Island
* South Carolina
* South Dakota
* West Virginia