State Street Corpse?

State Street Corp announced today that more layoffs were coming, all within this quarter. The bank fired 1,800 mid-to-upper-level managers (the type of folks who could afford houses in Greenwich) last December, but that was before it admitted today that it was sitting on $9 billion in worthless paper. Question: since much of this worthless junk was tied to Lehman, how long did State Street know that it had this little problem, and what finally forced it to fess up today?

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3 responses to “State Street Corpse?

  1. Flyover Girl

    “what finally forced it to fess up today?”

    First slow news day in a few weeks…it’s a federal holiday and the media and the citizens are preoccupied with the coronation.

    Plus I’m sure they’re betting on an Obama honeymoon market surge. However, I expect his honeymoon will last no more than a week, if that.

  2. anonymous

    Some of these financial companies are so well-known for lacking any IQ in the management ranks that it’s likely a combination of stupidity and lack of honesty (once damaged realized)

    Lots of layoffs of those who never deserved the excessive pay of their jobs anyway…

    Hopefully, some shrewd short-seller who realized the sham earlier than the clueless shareholders made a few bucks (for himself, his employees and investors) for insightful bets….stuff that keeps markets sharp….