Charles River purchase drains State Street’s capital
Depleted CET1 capital ratio spells trouble for 2019 stress tests
State Street's buyout of technology provider Charles River Development (CRD) contributed to a $2.1 billion bite out of its Common Equity Tier 1 (CET1) capital in the fourth quarter of 2018, leading to a 150 basis point drop in its core solvency ratio.
The custody bank completed the $2.6 billion purchase of its Boston neighbour, an order-management system (OMS) vendor, in October. The buyout was financed through the suspension of around $950 million of planned share repurchases, and the issue of
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