Reuters: US Dollar Report: State Street signals more cost cutting

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State Street signals more cost cutting Sep 11th 2012, 13:09 BOSTON, Sept 11 | Tue Sep 11, 2012 9:09am EDT BOSTON, Sept 11 (Reuters) - State Street Corp Chief Executive Jay Hooley said Tuesday the custody bank's massive program to streamline its technology infrastructure might not be enough, as weak trading revenue forces him to revisit expense cuts. "We're looking at everything," Hooley said during a presentation at the Barclays Financial Services Conference. State Street is currently in the middle of an IT transformation program that is expected to give the company $600 million in pre-tax savings in 2015. But that might not be enough as foreign exchange revenue and other trading revenue come under pressure amid a global slowdown in capital market activity. Hooley said he will consider additional structural improvements and cutting outside consulting expenses, for example. He said, however, that it is difficult to match cost reductions with trading revenue declines because that business generates a higher profit margin than other company activities.

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