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State Street declines comment on Schwab report

US – State Street has declined to comment on a report that it is set to sell the wealth management arm of State Street Global Advisors to Charles Schwab.

Bloomberg News, citing an unnamed source, said the Boston-based bank is to sell SSGA’s private asset management business to US stockbroker Charles Schwab & Co. for 300 million dollars.

“We don’t comment on rumour or speculation,” said a spokeswoman. A Charles Schwab spokesman said he was also unable to comment.

Bloomberg quoted the source as saying State Street would probably announce the sale of the unit, which it says manages 13 billion dollars for wealthy investors, to San Francisco-based Schwab’s US Trust Corp. this week.

Speaking at the William Blair & Co. growth stock conference today, State Street president Ron Logue said the company’s core business was “rock-solid” and that it is continuing to win business worldwide.

In April State Street reported first-quarter net income fell to 96 million dollars from 178 million dollars the year before. And the company has announced a total of 2,800 job losses.

State Street is the world’s largest institutional asset manager and manages around 51 billion euros of European pension fund assets.

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