State Street Reported Ready to Buy Deutsche's Custodial Business

October 29, 2002 ( - Deutsche Bank continued trying to jettison its non-core businesses with word that the giant German bank has worked out a deal to sell its securities services business to State Street Corporation for $1.4 billion.

Reuters, citing unnamed banking sources, reported that the transaction could close as early as this week with the two sides having tried since mid-September to hammer out an agreement.(See  State Street Confirms ‘Exclusive’ Talks on DB Biz ).

According to the report, the deal would make Boston-based State Street the world’s largest custodian in terms of financial assets.  Deutsche declined to comment to Reuters on the status of any talks on the securities business.

The negotiations have focused on Deutsche’s global custody, global fund services, global securities lending, and global performance measurement activities, as well as domestic securities custody and processing businesses in the United States and Britain, Reuters reported.

For Deutsche, the deal will mark another restructuring step aimed at cutting operating costs by two billion euros by 2003, including 14,500 job cuts.