And brags about it because their Tangible Common Equity (TCE) will increase. If however, you put State Street's conduits on their balance sheet their TCE is only 1.19%.
Now by slashing their dividend, State Street will save $396 million dollars of cash that shareholders won't get. And since shareholders won't be getting this cash, State Street has decided to forego some $278 million of "incentive compensation" for it's executives.
Remember State Street has $9 billion of unrealized losses that these executives were able to saddle the company with, and only now they decide to cut some of their compensation?
Also look at the disengeniousness of their press release. State Street says, their unrealized investment portfolio losses improved by $730 million since 12/31/08. They already announced that this portfolio had improved by over $400 million, but State Street is hoping you would of already forgotten that!
The only thing that we know for sure about State Street, is the same things we found out about AIG.
There isn't just one cockroach.
And management's interests come before shareholders!