Jamie Dimon Conducts $1 Trillion Panty Raid On State Street

The Joey Bishop of Wall Street is reminded of the pecking order.
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State Street has always been the Joey Bishop of the Wall Street Rat Pack. While the inner circle hung out together making deals and living the high life on center stage, State Street was just out of frame. Working and oft-forgotten.

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Like Joey, State Street could rely on the vague loyalty of powerful pals in the business. Like BlackRock, who has long given State Street a thick roll of billions to hang on to from time to time, so as not to blow it all in the casino. That has served State Street well over the years, plying its trade on the margins while all the hipper cats engage in that ring-a-ding lifestyle, and it has made State Street a very rich bank.

But like the Rat Pack, you always gotta stay on the good side of the Big Kahuna, the leader, the Chairman of the Board. Because when you're most comfortable is when he is most likely to remind you who's in charge, kid.

State Street Corp on Wednesday reported a 3.4 percent drop in fourth-quarter revenue and said it lost more than $1 trillion in custody assets to JPMorgan Chase & Co Inc, sending State Street stock tumbling as much as 7.5 percent.
State Street is the world's No. 2 custody bank with $28.8 trillion in assets under custody and administration. But the figure could shrink by more than 3 percent after JPMorgan said on Wednesday that it was chosen by BlackRock Inc to be custodian for more than $1 trillion in assets.

$1 trillion?! That's finksville, baby. What gives? Did JPM need the scratch?

For JPMorgan, the deal is more of a feather in its cap than a windfall to its bottom line. The deal boosts JPMorgan's assets under custody, which it pegged at $20.5 trillion at the end of December, by about 5 percent.
The new business is expected to add annual revenue on the order of tens of millions of dollars and be included in the company's securities services revenue, which last year amounted to $3.6 billion. JPMorgan's total reported revenue for the entire company was $95.7 billion in 2016 and its net income was $24.7 billion.

Nope. Jamie and Daniel Pinto clearly just wanted to remind their lil' buddy up in Boston who really runs this crew.

So have a drink and take it like a man, State Street, this is a coo-coo business, and Larry Fink didn't mean nothin' personal...also, don't look at your stock price, cuz that's just gonna hurt.

BlackRock jilts State Street, moves $1 trillion in custody assets to JPMorgan [Reuters]

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