State Street Corp (STT)

dinasourneil (99.95) Submitted: 8/31/2007 10:06:24 AM : Start Price: $59.65 STT Score: -13.97

If STT was careful, and these don't pose a problem, then the stock is likely undervalued at these levels, if not it could be a long way down, but again the problem is there is no way for us to know. Investors are forced to rely on the assurances of STT management, which is all the public had leading up to Sachsen LB and IKB Deutsche Industriebank bailouts. All one can do is HOPE that these off-balance sheet entities are structured differently and invest in different assets than the ones that caused the German debacles. Unfortunately, the man primarily responsible for setting up and purchasing assets for the off-balance sheet entity (Rhineland Funding) that eventually did IKB in, was Dirk Röthig. Knowing what ultimately happened, one might be curious as to where he honed his asset purchasing/securitization skills. According to an article by Peter Gumbel, in the most recent issue of Fortune investigating the IKB meltdown , Röthig came to IKB from none other than State Street Bank in Munich. BTW IKB had exposure to conduits of about 15% of assets, whereas State Street's exposure is in the 20% area.Article linked below.http://money.cnn.com/magazines/fortune/f...