State Street: How Power Shapes Our Economy
Explore State Street's deep ties with BlackRock and Vanguard, its global influence, and its historical moves that make it too big to stop.
What if I told you that three companies—just three—hold the strings to nearly every major corporation worldwide?
Sounds like the start of a dystopian novel.
But it’s not fiction. State Street Corporation, along with its counterparts BlackRock and Vanguard, is part of the so-called "Big Three," quietly shaping markets, industries, and possibly even global policy. If you haven’t read up on the other two, you can check them out below:
The Power of Vanguard: How This Financial Giant Shapes the World
Did you know there’s a financial powerhouse quietly influencing nearly every aspect of the global economy? You may not see its name plastered across headlines daily, but its impact is undeniable.
Who is BlackRock? A Deep Dive into the World’s Largest Asset Manager
BlackRock is the world’s largest asset management firm, overseeing trillions of dollars in assets for clients ranging from governments to institutions and individual investors. With a presence in over 100 countries, it has positioned itself as a critical player in global finance.
Together, the three have unprecedented power and influence.
With trillions under management, these giants can sway corporate decisions, shape economic policies, and consolidate wealth like never before. And while much of their work happens behind closed doors, cracks in their façade have raised questions about their true motives.
So, what makes State Street stand out?
Its connections to BlackRock and Vanguard, its historical dealings, and its low-profile yet massive impact on the global economy have caught the attention of skeptics and truth-seekers alike.
Could this be part of a larger agenda?
Or are we looking at the natural evolution of capitalism?
The "Big Three" Nexus: State Street, BlackRock, and Vanguard
These firms are so interconnected that calling them competitors feels almost laughable. Instead, think of them as three sides of the same coin, working in tandem to quietly control a significant chunk of the corporate and financial landscape.
How Are They Connected?
Here’s where it gets interesting.
Both BlackRock and Vanguard hold significant shares in State Street, and vice versa.
In fact, these firms often have overlapping stakes in each other’s funds, creating a web of mutual ownership that blurs the lines between competition and collaboration. This tangled relationship raises a critical question:
are they really acting independently, or is this a coordinated effort to consolidate economic power?
I think you know.
To make matters more intriguing, their influence extends far beyond Wall Street. Through their massive voting power, the Big Three can shape the strategies and decisions of virtually every major publicly traded company.
That’s right—whether it’s Apple, ExxonMobil, or Coca-Cola, chances are these firms have a BIG say in what happens behind the boardroom doors and who is even allowed inside those boardrooms.
The Quiet Monopoly
But wait, isn’t this monopolistic behavior?
Technically, no.
The Big Three don’t own these companies outright; they just manage a mind-boggling number of shares on behalf of investors.
This loophole allows them to wield outsized influence without triggering antitrust alarms. Think of it like owning the remote to someone else’s TV—you don’t own the TV, but you still control what’s on screen.
This level of control has sparked fears of coordinated action.
What if the Big Three align their voting power to push a particular agenda?
From environmental policies to executive pay structures, their ability to influence industries on a global scale would indicate that their reach goes far deeper than meets the eye.
The idea of three firms wielding this much power might sound like a conspiracy theory, but the numbers don’t lie. Their financial dominance, mutual ownership ties, and unified voting influence paint a picture that’s hard to ignore.
If State Street, BlackRock, and Vanguard are the silent kings of the financial world, the question isn’t whether they have power—it’s what they’re doing with it.
And that’s where things get murky.
Suspicious Connections and Networks
If the financial world were a game of chess, State Street would be a quiet yet powerful bishop, moving behind the scenes in strategic, often puzzling ways. The firm's connections—both personal and business-related—shed light on a network that seems far more calculated than coincidental. Let’s break it down.
Person-to-Person Links
Ever hear the term “revolving door”? In the case of State Street, it spins like a carousel. Notable individuals have cycled between positions at State Street, BlackRock, and Vanguard, and influential roles in governmental and international organizations.
Current Position: Chairman and Chief Executive Officer, State Street Corporation.
Past Positions:
President and Chief Executive Officer, State Street Global Advisors (2015–2017).
President of Asset Management and Corporate Services, Fidelity Investments (2010–2014).
President and Chief Executive Officer, BNY Mellon Asset Management (2007–2010).
Current Position: President and Chief Executive Officer, State Street Global Advisors.
Past Positions:
Chief Executive Officer, New York Life Investment Management (2015–2021).
Various leadership roles at Bridgewater Associates and Morgan Stanley.
Current Position: Executive Vice President and Global Chief Investment Officer, State Street Global Advisors.
Past Positions:
Chief Investment Strategist, OppenheimerFunds.
Head of Investment Products and Managed Solutions, Citi Private Bank.
Current Position: Executive Vice President and Head of Global Delivery, State Street Corporation.
Past Positions:
Chief Operating Officer for Europe, Middle East, and Africa, BNY Mellon.
Various senior roles at BNY Mellon.
Current Position: Executive Vice President and Chief Financial Officer for Investment Services, State Street Corporation.
Past Positions:
Chief Financial Officer, BNY Mellon Asset Servicing.
Various financial leadership roles at BNY Mellon.
Current Position: Vice Chairman and Chief Financial Officer, State Street Corporation.
Past Positions:
Chief Financial Officer, Citizens Financial Group.
Global Treasurer, General Electric.
Current Position: Executive Vice President and Head of Global Services, State Street Corporation.
Past Positions:
Head of Global Services for Asia Pacific, State Street.
Various leadership roles within State Street.
Current Position: Executive Vice President and Head of Client Impact, State Street Corporation.
Past Positions:
Executive Vice President, Global Head of Client Service, JPMorgan Chase.
Various senior roles at JPMorgan Chase.
Current Position: Executive Vice President and Chief Product Officer, State Street Corporation.
Past Positions:
Managing Director and Head of Global Client Management, Depository Trust & Clearing Corporation (DTCC).
Various leadership roles at Deutsche Bank.
Current Position: Executive Vice President and Head of State Street Alpha, State Street Corporation.
Past Positions:
Chief Executive Officer, Charles River Development.
Partner, PricewaterhouseCoopers (PwC).
And that’s just ten people. From first glance, it would appear they came from all walks of financial life. But peel back the curtain a bit (remember what I said about Vanguard, State Street, and Blackrock all working together) and you’ll see definite patterns:
JPMorgan Chase: Collectively, they own approximately 19.15% of JPMorgan Chase's shares.
State Street Corporation: Collectively, Vanguard and BlackRock own approximately 16.75% of State Street's shares.
BlackRock: Collectively, Vanguard and State Street own approximately 12.9% of BlackRock's shares.
Deutsche Bank: Collectively, the Big Three own approximately 8.1% of Deutsche Bank's shares.
Citizens Financial Group: Collectively, they own approximately 18.5% of Citizens Financial Group's shares.
BNY Mellon: Collectively, they own approximately 18.3% of BNY Mellon's shares.
Morgan Stanley: Collectively, they own approximately 15.8% of Morgan Stanley's shares.
So, do they work for state street? Or did they perhaps work for state street all along?
The blurred line between regulators and the regulated creates a level of coziness that’s hard to ignore. This revolving door has sparked concerns about conflicts of interest, favoritism, and whether policies are being shaped to benefit a select few at the expense of the broader public.
Business-to-Business Links
State Street doesn’t just connect with people; its business ties weave an intricate web across industries. From sectors like defense and fossil fuels to high-stakes pharmaceuticals, State Street’s portfolio reads like a who’s-who of global power players.
Even more intriguing are its partnerships with organizations like the World Economic Forum (WEF). The WEF is known for its ambitious, globe-spanning initiatives—like the Great Reset—that aim to reshape economies and societies.
Could State Street’s involvement signal alignment with these agendas?
Such partnerships appear to point to coordinated efforts to centralize power under the guise of progress.
This network becomes even murkier when you consider how these relationships often overlap with BlackRock and Vanguard, amplifying the influence of the “Big Three” across multiple sectors.
Whether intentional or incidental, the result is a tightly interwoven system of economic and political power.
Historical Moves Under Scrutiny
During the 2008 financial crisis, State Street, like many major financial institutions, found itself under the spotlight. While it received bailout funds through programs like the Troubled Asset Relief Program (TARP), critics argued that the company may have exploited these programs to bolster its position rather than stabilize the market.
By January 1, 2009, State Street’s market cap had declined to about $8.26 billion, representing a significant 71.66% decrease.
As of December 2024, it had rebounded to $29.10 Billion
So, the market capitalization of State Street grew about 200% in 15 years.
The lack of transparency during this period only fueled these concerns, leaving many to question how much influence State Street exerted behind the scenes.
Shady Settlements
State Street has faced numerous legal settlements over the years, with accusations ranging from fraud to market manipulation. One of the most notable cases involved the foreign exchange overcharging scandal, where the company was accused of overcharging institutional clients for currency trades.
Foreign Exchange Overcharging Scandal (2017): State Street agreed to pay a total of $382.4 million to settle allegations of fraudulent foreign currency exchange practices. This included a $155 million civil penalty to the United States.
Undisclosed Markups on Expenses (2019): The company was found to have overcharged clients by adding undisclosed markups on expenses, collecting approximately $170 million from 1998 to 2015. State Street has been reimbursing these overcharges to affected clients.
Custody Fee Overcharges (2017): State Street agreed to pay more than $64 million to resolve fraud charges related to secret commissions on billions of dollars of trades.
ERISA Lawsuit Settlement (2024): The company agreed to pay $4.3 million to settle a lawsuit alleging self-dealing in its 401(k) plan.
Sanctions Violations Settlement (2024): State Street agreed to a $7.5 million settlement with the Office of Foreign Assets Control (OFAC) for apparent violations of U.S. sanctions related to Russia.
The resulting settlements amounted to hundreds of millions of dollars, yet critics argue that these fines were a mere slap on the wrist compared to the profits allegedly made through these practices.
And they are.
$628.2 million total. Approximately 2.5% of their total market capitalization.
If compared to the average U.S. citizen earning $70,000 annually, that would be like a fine of $1,750.
The cases highlighted systemic issues within the financial sector, with State Street serving as a high-profile example of what many see as a “too big to punish” culture.
Early Role in the Index Fund Revolution
State Street played a pivotal role in the index fund revolution, which popularized passive investing. While this innovation democratized investing for retail investors, skeptics argue it also paved the way for centralized wealth control.
Through its flagship SPDR ETFs, State Street enabled the accumulation of massive voting power in corporations across industries. By consolidating shareholder influence into the hands of a few asset managers, the index fund boom has contributed to reduced competition and increased market manipulation potential.
Dark Pool Activities
State Street’s involvement in dark pools and off-exchange trading has also attracted criticism. Dark pools are private trading platforms that allow investors to buy and sell large blocks of shares anonymously, shielding their activities from public scrutiny.
State Street Corporation operates BlockCross, an independent dark pool platform designed to facilitate large, anonymous trades for institutional investors. By operating this dark pool, State Street offers:
Anonymity: Ensuring that trade intentions remain confidential until execution.
Reduced Market Impact: Allowing large trades to occur without significantly affecting public market prices.
Enhanced Liquidity: Providing access to a pool of institutional participants, increasing the likelihood of order matching.
While dark pools are not inherently illegal, their opaque nature makes them a lightning rod for insider trading and market manipulation. State Street’s participation in these activities seems to reflect a broader lack of accountability in the financial sector, where the world’s largest institutions operate with near-impunity.
When viewed together, these historical moves paint a picture of a company that has repeatedly leveraged its position to consolidate power and profits. Whether it’s through questionable actions during financial crises, legal settlements that barely dent its bottom line, or eyebrow-raising dark pools, State Street’s track record invites scrutiny from those who question the true cost of its dominance.
As the saying goes, “Follow the money.” And in State Street’s case, the trail is anything but straightforward.
V. Potential Conspiracy Theories and Interpretations
Hidden Agenda Through Shared Ownership:
Speculation on whether State Street, BlackRock, and Vanguard’s dominance is part of a coordinated plan to centralize economic power.
Influence Over Global Policy:
Analysis of how control over key industries could allow them to direct international policy agendas, including topics like climate change, energy, and food security.
Links to Elite Organizations:
Connections to groups like the Bilderberg Meeting, Trilateral Commission, and others frequently tied to theories of a "New World Order."
Connect the Dots
The dominance of State Street, BlackRock, and Vanguard is not coincidental. Together, these three asset management giants operate as the architects of a coordinated plan to centralize economic power on a global scale.
Through mutual ownership structures and overlapping stakes in nearly every major corporation, they have effectively eliminated competition in the financial sector. This consolidated power enables them to wield outsized influence, dictating corporate strategies and even national economic policies under the guise of passive investing.
Their strategy is clear: accumulate voting power in the world’s largest companies, subtly enforce their agenda, and reduce accountability through complex ownership webs.
By controlling industries ranging from technology to energy, these firms have established themselves as the de facto rulers of the global economy, reshaping markets to align with their own interests.
Influence Over Global Policy
State Street, BlackRock, and Vanguard do not merely influence markets—they control international policy agendas. With their dominance over key industries such as fossil fuels, food production, and pharmaceuticals, they have secured a direct line to policymakers and global institutions. Their involvement in Environmental, Social, and Governance (ESG) initiatives allows them to dictate how industries evolve.
Take climate change, for example. These firms have used their influence to push policies that benefit their portfolios, often at the expense of smaller competitors and consumer choice. If you’re not “green”, then you’re not “certified.”
In the energy sector, they strategically back technologies and resources that align with their long-term goals, sidelining alternatives that might threaten their monopoly.
In the realm of food security, their stake in agribusiness giants ensures control over the global food supply chain, granting them unprecedented power to shape what people eat and how it’s produced.
This influence underscore their role in advancing the “New World Order” agenda, a plan aimed at consolidating wealth and power into the hands of a select few. Through these policies and alliances, they set the stage for decisions that affect billions, bypassing democratic processes and ensuring their interests remain paramount.
The Big Picture
State Street, BlackRock, and Vanguard are not just asset managers—they are global overlords, operating behind the scenes to consolidate wealth, control policy, and manipulate markets.
Their shared ownership structure, policy influence, and elite connections reveal a deliberate and well-coordinated effort to centralize power and shape the future of the world according to their design. The implications of their dominance extend far beyond the boardroom, raising profound questions about the nature of democracy, economic freedom, and global sovereignty.
If you want a THOROUGH walk-through of how these companies all interact together and who (possibly) owns them, watch Ian Carroll’s 4-hour walkthrough in the link below:
Appendix
Timeline of Key Events
1972: State Street Global Advisors is founded, establishing its presence in investment management.
1993: Launch of the SPDR S&P 500 ETF, the first U.S.-listed ETF, revolutionizing passive investing.
2008: State Street receives $2 billion under the Troubled Asset Relief Program (TARP) during the financial crisis.
2010: Legal challenges arise regarding custody fee overcharges, leading to heightened scrutiny of State Street’s practices.
2017: Settles for $382.4 million over allegations of fraudulent foreign exchange practices.
2024: Expands into alternative investments with innovative products targeting hedge fund replication.
Notable Figures
Ronald P. O’Hanley
Current Position: Chairman and CEO of State Street Corporation.
Notable Achievements: Instrumental in steering State Street through periods of market turbulence and expansion into global markets.
Larry Fink
Current Position: Chairman and CEO of BlackRock.
Connections: Founding member of BlackRock, which has extensive mutual ownership ties with State Street.
Yie-Hsin Hung
Current Position: President and CEO of State Street Global Advisors.
Background: Former CEO of New York Life Investment Management with expertise in asset management.
Tim Buckley
Current Position: CEO of Vanguard.
Contributions: Led Vanguard’s growth to over $8 trillion in assets under management, further entrenching its role alongside State Street and BlackRock.
Resources for Further Research
Public Financial Reports
Legal Documents
Whistleblower Accounts
Investigative articles and reports detailing insider perspectives on corporate practices at major asset managers:
This appendix serves as a guide for readers to delve deeper into the history, key players, and controversies surrounding State Street, BlackRock, and Vanguard. It offers a starting point for further exploration of their profound influence on global finance.