According to FT.com, State Street said it will buy the hedge fund administration arm of Goldman Sach's, as the Boston-based custody bank announced a drop in revenues in the second quarter.
The $550m cash purchase will make State Street the world's largest provider of services to alternative asset managers such as hedge funds, the bank said, as a 1.9% drop in revenues on the year before to $2.43bn illustrated the challenge it faces to grow in volatile markets with interest rates near zero.
