There is this recursive sort of double-take one does on learning that a firm is on the verge of exhausting its legal reserve. First, that the firm needed a large legal reserve. Second that it was exhausted. Third, that "large" in this instance is $650 million. Whoosh!
Somewhere there is a fantastic punch line in there when the horrified looks are placated by a quick "Yeah, it's State Street Bank." Everyone goes back to drinking a middling California Chardonnay. That this would be soothing should be irritating.
State Street Corp. may deplete the $625 million set aside in 2007 to settle legal claims stemming from losses linked to subprime mortgages.The reserve "may not be sufficient to address ongoing litigation" if the U.S. Securities and Exchange Commission sues State Street and seeks monetary penalties, the Boston-based custody bank said in a regulatory filing today. The SEC told State Street that it might be sued over disclosures about and management of fixed-income investments through 2007, the company said June 25.
"We're not going to speculate as to the amount of any potential monetary penalty," Carolyn Cichon, a spokeswoman for State Street, said in a telephone interview.
No reason, it seems, to be alarmed. Of course the reserve got spent. That's what it is there for.
The company declined 99 cents to $52.87 at 11:06 a.m. in New York Stock Exchange composite trading. It has gained 34 percent this year, compared with the 25 percent rise for the Standard & Poor's index of asset managers and custody banks.
That's a modest decline, isn't it. Lower administration costs now that $625 million no longer resides in the building?
State Street May Exhaust $625 Million Legal Reserve [Bloomberg]
Posted by guest , Aug 10, 2009 3:28PM
I miss muffie. especially now that I want to bone her again.
Posted by guest , Aug 10, 2009 3:41PM
lower administrative costs, i'll have to remember that one...
Posted by guest , Aug 10, 2009 3:52PM
I hear the sound of sucking. And it's not the sound of an Asian typhoon sweeping through the DB office.
The publisher of this site should hang his head in shame.
Can we have Bess back, PLEASE! Bess should be roundly whipped for not slaving over these pages day and night without respite.
Posted by guest , Aug 10, 2009 4:07PM
What a boring article.
Posted by guest , Aug 10, 2009 4:11PM
Is this written in Esperanto? In English it reads like complete gibberish.
Posted by guest , Aug 10, 2009 4:12PM
http://www.nypress.com/imgs/hed/art19320.jpg
a pic from fashion meets finance. grrrrrr!
Posted by guest , Aug 10, 2009 4:14PM
Killing (oneself) is the new killin' it.
6 days down....
Posted by guest , Aug 10, 2009 4:15PM
@1...oh yeah? The only bone you've ever seen is your mother's anorexic ones that developed after she had you.
And you, @3, you're disgusting. Using the word "sucking", "whipped" and "slaving". I thought you only used those words in private when you drugged and handcuffed a Chippendale dancer and had your way with him.
And you, @4, you said "What a boring article..." like you are so great. I bet your doctor gave you a physical and when he asked you to turn your head and cough, he probably said the same thing about your pecker even though you brought him flowers and a note.
Posted by american bandersnatch , Aug 10, 2009 4:17PM
Not only is it gibberish, but I don't think its central theme is even correct.
"May deplete the $625 million set aside" and "may not be sufficient" doesn't mean the funds have been spent, it means they may need to spend more than they set aside. The possible need for adjustments are what make estimates estimates.
Posted by guest , Aug 10, 2009 4:20PM
Did you write this post sometime in the late 18th century? A graphic designer should come up with a font style called "overwrought" reserved expecially for EP's use. Also, aren't people in private equity supposed to somewhat understand accounting and the concept of materiality?
Posted by guest , Aug 10, 2009 4:20PM
@8
Step your game up, son.
-@4
Posted by guest , Aug 10, 2009 4:22PM
@8 weak
Posted by Tax Chick , Aug 10, 2009 4:27PM
@6 - Bedhead is the new killin' it!
Posted by guest , Aug 10, 2009 4:27PM
@8 I enjoy a good insult as much as the next guy but those were pathetic.
Posted by HeadlessHorseman , Aug 10, 2009 4:29PM
Some desperately need help:
First paragraph -
"...verge of exhausting its SIZEABLE legal reserve..." This sets up the second sentence so that it actually makes sense when read. The audience has to be with you to appreciate the (attempted) humor.
Second paragraph -
"Somewhere therein rests a fantastic punch line in which the horrified looks are placated by a quick "Yeah it's just State Street" before everyone tops over another glass of wine."
Fix the sentence structure so it doesn’t leave your readers staggering about looking for a vomitorium. Better yet...find the punch line (it's kind of your job). Oh, and “punch line” is two words.
And why are you quoting the stock price as of 11:06 am? I don’t give a shit what the Bloomberg article says…give me something timely. Surely you’re capable of adjusting Bloomberg’s percentage increases in the five plus hours since Bloomberg ate your lunch?
Second to last sentence before the link - "That's a modest decline, isn't it?" Question marks are used to indicate questions...even when they're rhetorical.
Say my name,
HH
Posted by Tax Chick , Aug 10, 2009 4:32PM
8 almost had the rhythm of those your-mama-is-so-fat jokes we all loved so much in the 6th grade, too bad for 8 we are not still in the 6th grade.
Posted by sourceclosetodiscussions , Aug 10, 2009 4:34PM
nice @hh...perhaps you could find a picture from the web to attach to this post to make it, well - you know, interesting (or attention grabbing, if you like).
Posted by HeadlessHorseman , Aug 10, 2009 4:36PM
@ 9 & 10
Your critiques of the post's substantive deficiencies are right on point. I was just trying to make it readable as a start.
"Overwrought" earned me a few "WTF" stares. Nice work.
Posted by guest , Aug 10, 2009 4:37PM
@17 I wouldn't do that. Posts like these deserve to die a quiet and forgotten death.
Posted by american bandersnatch , Aug 10, 2009 4:41PM
@18 - Agreed. #10's "A graphic designer should come up with a font style called "overwrought" reserved expecially for EP's use." was funny enough to make me glad I slogged through the original post.
Posted by guest , Aug 10, 2009 4:44PM
Cretins.
EP is a stud, or studette, whatever the case may be.
Posted by guest , Aug 10, 2009 4:46PM
1,
She was here a few days ago.
Posted by american bandersnatch , Aug 10, 2009 4:51PM
@21 - In her defense, English is reported to be her third language. I'm sure it would be funnier if she had written it in Romansh.
Posted by guest , Aug 10, 2009 4:58PM
this is a new concept, too broke to sue?
Posted by HeadlessHorseman , Aug 10, 2009 4:59PM
@ 6
Her:
The excessive lipstick and crazy-eyed glare says “It’s time for some jungle love” while the bed head and satin sheet/dress says “I’m all out of needles but I bet this dude’s a diabetic”
Him:
The two-days of beard growth says “Finally found a reason to shower and leave my apartment” while the dopey-eyed grin says “I’d never believe she kept a dildo down the front of her pants if I weren’t feeling it right now…horny little vixen…SCORE!”
Homage to Naked Short.
Posted by guest , Aug 10, 2009 5:07PM
veiled threat to the SEC, don't penalize us too much because we won't pay it.
Posted by Shakes23 , Aug 10, 2009 5:16PM
please self-immolate
Posted by guest , Aug 10, 2009 5:21PM
@25 A worthy effort
Posted by guest , Aug 11, 2009 1:23PM
@1 That's absurd.