June 10, 2008 at 1:00 am by Tom Lydon
When the waters ahead look turbulent, it’s best to prepare, and the parent of exchange traded fund (ETF) provider State Street Global Advisors is the latest firm to do just that.
Several banks and financial firms are still reeling from the credit crunch, and State Street Corp. (STT) is among several that are trying to raise capital ahead of more expected writedowns, reports Donna Kardos for MarketWatch.
The corporation began a common stock offering of $2.5 billion, seeking additional investment as the near future could present more write-downs and a credit downgrade.
The main concern of State Street is a deteriorating market value of securities held within its investment portfolio, and Fitch Ratings gave warning in April that the corporation’s credit rating would drop as a result.
Many other companies have been feeling the effects of the credit crunch, the latest among them Lehman Brothers (LEH), which announced yesterday that a $2.8 billion loss was expected.
Tags | Financial
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