Skip to main content

State Street

(STT) - Get State Street Corporation Report

plans to offer stock and issue senior notes to repay the U.S. government's investment in the company through the Treasury's Capital Purchase Program.

Boston-based State Street had received a $2 billion loan as part of the government's Troubled Asset Relief Program. The bank said it expects to raise $1.45 billion from the stock offer alone.

Scroll to Continue

TheStreet Recommends

State Street was among 19 banks that underwent the government's so-called stress tests earlier this month, but was found to have enough capital to handle additional losses should the economy worsen. Without having to raise new capital for reserves, State Street plans to raise cash to pay back the government loan.

Copyright 2008 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.