State Street & BNY

Why are they getting money. Aren’t they primarily Asset Management/ Custodians. What are they going to do with the capital infusion to help this crisis?

Some of the nation’s largest banks had to be pressured to participate by Treasury Secretary Henry Paulson, who wanted healthy institutions that did not necessarily need capital from the government to go first as a way of removing any stigma that might be associated with banks getting bailouts. Sounds dumb. http://news.bostonherald.com/business/general/view.bg?articleid=1125532

i’m thinking Lehman failure was BIG mistake. they are trying to cover up for it now… my undertanding is STT lent shares to Lehman, who in return lent to hedge fund clients to short, now STT is knocking on the door asking for their shares back from Lehman, but no one is answering…

Makes you wonder about the future of the securities lending programs at conservative asset managers…probably more revenue out the window.