2021 Resolution Plan

Public Section

July 1, 2021 2 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Contents

4 1. Introduction and Our Business

12 2. Our Integrated Approach to Resolution Planning

12 2.1 Our Resolution Planning Priorities

14 2.2 Overview of Resolution Planning

22 2.3 Post-Resolution Size and Operational Capabilities

22 2.4 Our Continued Focus on Resolvability

39 2.5 Our Resolution Governance Structure and Risk Management Processes

44 2.6 Actions to Address the Shortcoming on Governance Mechanisms

44 2.7 Targeted Information Request

46 3. Additional Information

46 3.1 Description of Core Lines of Business

50 3.2 Material Entities

67 3.3 Financial Information

74 3.4 Memberships in Material Payment, Clearing and Settlement Systems

76 3.5 Description of Derivative and Hedging Activities

77 3.6 Material Supervisory Authorities

79 3.7 Principal Officers

80 3.8 Description of Material Management Information Systems

80 3.9 Conclusion

81 3.10 Glossary

3 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 1. INTRODUCTION AND OUR BUSINESS

State Street views prudent management and the operation of our business as a core institutional responsibility.

We understand the importance of (FDIC) (collectively, the “Agencies”). actively managing risk and being A thoughtfully designed resolution plan prepared to weather unexpected can serve to minimize disruption to US events that could place tremendous and global financial markets, protect stress on our financial well-being. client assets and deposits, and avoid One aspect of our commitment to the need for extraordinary government prudent management is our resolution or taxpayer support. To accomplish planning. As part of our resolution these goals, a successful resolution planning, we continually review our strategy must provide for the continuity businesses, operations and legal of our critical operations. We also entities to identify impediments to believe that the resolution strategy resolvability and make changes to must protect our clients by both allowing our processes and structures to continued access to their assets and support resolution. We also created deposits and meeting their transaction and continue to refine a robust processing needs in a potential and executable plan for our orderly resolution scenario. resolution in a hypothetical stress scenario leading to catastrophic failure. The concepts behind our resolution strategy influence the way we manage The global financial crisis of 2008 and our business on a daily basis. We have the recent pandemic experience have embedded resolution planning into highlighted the need for systemically our strategy and operating model. important financial institutions, like us, Significant company-wide resources, to have a credible resolution plan. including executive management focus, The resolution plan is required by the are dedicated to resolution planning. Dodd-Frank Act and rules issued by Our efforts span financial, operational, the Board of Governors of the Federal structural and legal dimensions and Reserve System (Federal Reserve) and are aligned to various regulatory Federal Deposit Insurance Corporation requirements and guidance.

4 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We filed our 2021 Targeted 165(d) As required by the 165(d) Rule, our 2021 Resolution Plan1 (2021 Targeted Plan) Targeted Plan presents our preferred with the Agencies by the July 1, 2021 strategy for a hypothetical resolution deadline set forth in the 165(d) Rule.2 of State Street Corporation (SSC) under The 2021 Targeted Plan details our the US Bankruptcy Code that would be preferred resolution strategy – the executed in severely adverse economic Single Point of Entry strategy – and conditions. Pursuant to the 165(d) Rule, articulates both why this strategy a resolution plan must substantially provides a credible plan for our rapid mitigate the risk that our failure would and orderly resolution in the event of have serious adverse effects on US material financial distress or failure financial stability and must not rely on and why it would substantially mitigate the provision of extraordinary support the risk that our failure, would have by the US or any other government serious adverse effects on US and to prevent our failure. We assume global financial stability. Our Single that our failure is precipitated by the Point of Entry strategy has been in occurrence of a hypothetical loss event effect since the filing of our 2017 that is specific to State Street, rather Resolution Plan. The 2021 Targeted than the broader financial system. Plan also addresses the 165(d) Rule, This proposed failure scenario and the 2019 Guidance,3 the shortcoming the associated assumptions are in our 2019 resolution plan filing hypothetical and do not reflect actual, (2019 Plan) identified by the Agencies current events, or our expectation in their letter to us dated December 16, of future events. The 2021 Targeted 2019 (2019 feedback letter),4 and the Plan in general, and our preferred letter from the Agencies dated June 29, strategy in particular, are not binding 2020 identifying information required on a bankruptcy court, our regulators to be included in our 2021 Targeted or any other resolution authority. In the Plan (2020 targeted letter).5 event of the resolution of our firm,

1 State Street’s ongoing resolution plan, including the preferred resolution strategy and all supporting capabilities and related analysis, is referred to herein as the “Resolution Plan.” Our 2021 targeted resolution plan submission to the Agencies is referred to as the “2021 Targeted Plan” as defined in the Agencies’ letter dated June 29, 2020. Link to document: https://www. federalreserve.gov/newsevents/pressreleases/files/bcreg20200701a1.pdf 2 Resolution Plans Required, 84 Fed. Reg. 59194 (Nov. 1, 2019) (codified at 12 C.F.R. Part 243 and 12 C.F.R. Part 381) (165(d) Rule). Link to document: https://www.federalregister.gov/ documents/2019/11/01/2019-23967/resolution-plans-required 3 Guidance for Section 165(d) Resolution Plan Submissions by Domestic Covered Companies, 84 Fed. Reg. 1438 (Feb. 4, 2019) (2019 Guidance). Link to document: https://www.federalregister.gov/ documents/2019/02/04/2019-00800/final-guidance-for-the-2019. 4 Feedback letter from the Agencies to State Street for the 2019 resolution plan (letter dated December 16, 2019). Link to document: https://www.federalreserve.gov/newsevents/ pressreleases/files/bcreg20191217a7.pdf 5 Letter from the Agencies to State Street for the 2021 targeted plan (letter dated June 29, 2020). Link to document: https://www.federalreserve.gov/newsevents/pressreleases/ filesbcreg20200701a1.pdf

5 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION the strategies implemented by us This Public Section, is intended to or by regulatory authorities and the provide a high-level overview of our associated outcomes could differ, resolution strategy and planning potentially materially, from our process for our key stakeholders. preferred resolution strategy and It is structured as follows: the outcomes we have described. The resolution preparedness efforts Section 1: Overview of our that we have undertaken and continue business and the implications to undertake are intended to improve for resolution planning. our operational readiness and facilitate Section 2: Our approach to the 2021 a potential resolution. In an actual Targeted Plan. This section lays out resolution scenario, this resolution our resolution planning goals, areas plan would inform our key decision of focus, and our resolution strategy makers, who would make decisions and how it would unfold in a resolution based on the facts and circumstances scenario and includes: prevailing at that time and subject to the terms of our Support Agreement. • Our strategy for the provision of continuity, transfer, or orderly The recent pandemic experience wind-down of our entities and has demonstrated that our crisis operations including a description infrastructure supports timely and of the resulting organization upon effective decision making, as we completion of the resolution process quickly leveraged capabilities that were created for resolution event • A description of State Street’s efforts purposes and built upon existing to assess our capabilities against operating processes. While the the 165(d) Rule, the 2019 Guidance pandemic did not trigger a resolution and regulatory feedback to further event, the experience reinforced improve resolvability and integrate the effectiveness of our resolution resolution planning considerations planning efforts (including into our business practices communications, service-level • State Street’s rationale for mappings, and operational playbooks) designating material entities to address similar objectives, as further described in Section 2.7 • The liquidity resources and loss- Targeted Information Request. absorbing capacity of the firm

6 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION • A description of how we have Our Business Model and Core addressed the shortcoming identified Business Lines by the Agencies in the 2019 letter We are one of the world’s premier providers of financial services, operating • A description of linkages between in more than 100 geographic markets our COVID-19 response and and employing over 39,000 people resolution-related capabilities worldwide, across five business units — and lessons learned from the State Street Institutional Services, pandemic experience through State Street Global Markets, State Street December 31, 2020 Global Exchange, Charles River and State Street Global Advisors. These five Section 3: Additional information on business units are operated through our core business lines and material our two core business lines, global entities as well as financial details and custody and investment management, other regulatory required disclosures. the former of which is aligned with the This includes information regarding our investment servicing line of business intragroup financial and operational reported in our Form 10-K. interconnectedness.

7 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 1: Core Business Lines and Business Units

Parent Holding Company

Core Business Line State Street Business Unit Corporation

Global Investment Custody Management

State Street State Street State Street Institutional Global Global Services Exchange Advisors

State Street Global Charles Markets River

Note: As of December 31, 2020

Our global custody business performs transactions on a daily basis in markets core custody and related value-added across the globe. The majority of global functions for primarily institutional custody’s operations are conducted investors including mutual funds, through our main banking subsidiary, collective investment funds and other State Street Bank and Trust Company investment pools, corporate and public (SSBT). SSBT is also the primary entity retirement plans, insurance companies, for access to our network of financial investment managers, foundations market utilities (FMUs), such as central and endowments worldwide. As a global securities depositories, payment custodian bank, we hold and service systems, central clearing providers, assets for clients in multiple jurisdictions sub-custodians, and correspondent around the world. Our financial services banks. We had $38.79 trillion in assets and products allow our large institutional under custody and administration investor clients to execute financial (AUC/A) as of December 31, 2020.

8 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Our other core business line Implications of Our Business Model is investment management. The majority of our total revenue Our investment management business, (81 percent) is derived from fees. conducted under the brand name Our fee-based, service-oriented State Street Global Advisors (SSGA), business model is relatively stable provides a broad array of investment and less complex than most other management strategies and products global systemically important banks for our clients. Our investment in the following ways: strategies and products span the risk/ reward spectrum, including core and • We hold mainly institutional enhanced indexing, multi-asset deposits: As a result of our global strategies, active quantitative and custody business, our client’s fundamental active capabilities, and deposits are mainly institutional alternative investment strategies. deposits; we do not have retail Our assets under management (AUM) deposits and have no retail branch is currently primarily weighted to network. Our balance sheet included indexed strategies. In addition, we $239.8 billion of total deposits as of provide a breadth of services and December 31, 2020. solutions, including environmental, • We do not have an investment social and governance investing, defined banking arm: Because we do not benefit and defined contribution and have an investment banking arm, Global Fiduciary Solutions. SSGA is we are less subject to the risks of also a provider of exchange traded market volatilities and associated funds (ETFs), including the SPDR® ETF revenue volatility from underwriting brand. Our investment management and advisory activities. clients are primarily institutional investors including corporations, public • We do not have a significant funds and other sophisticated investors. derivatives business: Our potential Our products are distributed directly losses from derivatives hedging and through intermediaries using activities are relatively minimal. a variety of investment vehicles, including Our activity in derivatives is limited a wide range of ETFs. We had $3.47 to hedging our own limited exposures trillion in AUM as of December 31, 2020.6 rather than market making.

Additional information on our two core • We provide a limited number of business lines is provided in Section 3.1 loans and leases: We do not provide Description of Core Lines of Business. mortgage loans, credit card loans, or other consumer loans and leases.

6 For additional information, refer to State Street’s Form 10-K released February 19, 2021.

9 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION This reduces our exposure to losses Our Systemic Significance from borrowers not paying their Our systemic significance is derived debts. We have less than $28 billion not from our size or trading activities, in loans and leases outstanding, but rather from the scale and range the majority of which are secured of the global custody and certain types by our clients’ assets under custody of investment management services (AUC). Loans and leases outstanding we provide to our broad range of clients accounted for only 9% of our total and the interconnected nature of those balance sheet assets as of services to the financial system. December 31, 2020. We deliver services to clients in more • Our legal entity structure is than 100 markets, with over 39,000 relatively simple: We benefit from employees. To do this, we leverage having the majority of our business our global network and an integrated conducted through SSBT, which is technology infrastructure to provide our principal banking entity. While our clients with a worldwide platform we have a global business with for growth and create custom-tailored operations across the world’s major solutions that can support investment markets, we do not have a complex strategies in virtually any market. Our legal entity structure. Our entire core business lines comprise a variety operation consists of 200 legal of integrated functions, the various entities as of December 31, 2020, components of which are often including 23 that have been performed by personnel within separate designated as material entities legal entities in different jurisdictions. (as discussed in Section 3.2 For a global custodian like us, certain Material Entities). scalable activities are centralized while specific customer, regulatory, or market Our balance sheet is relatively demands are likely to be delivered in small compared to other US global the local marketplace. systemically important banks. Our balance sheet included $315 billion in assets as of December 31, 2020, which were primarily comprised of cash and liquid securities held for investment purposes and to support our clients’ investment activities.

10 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We recognize our systemic significance if it were to occur. We carefully and have invested a substantial amount review our businesses, our clients, of resources and management attention our services, and our organizational to increasing our financial and structure to enhance resolvability and operational resilience, reducing the identify, understand and address key probability of entering into resolution impediments that might prevent or and minimizing the impact of our delay an orderly resolution. resolution on the financial system

11 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2. OUR INTEGRATED APPROACH TO RESOLUTION PLANNING

We continually strive to build and improve upon our approach to resolution planning.

We have integrated key resolution • Maintaining Uninterrupted Service concepts into the overall management Delivery to Clients: We enjoy deep of our business and devote extensive relationships with our clients and resources to enhancing our capabilities. maintain capabilities to deliver As part of our commitment to continuous continued service to them throughout improvement, we make refinements a resolution scenario. Our resolution whenever necessary to reflect changes strategy is designed to preserve our in our activities and to further support critical operations, housed in both our resolution strategy. our global custody and investment management businesses, in This section describes our integrated accordance with requirements approach to resolution planning and related to operational continuity in the enhancements we made to meet resolution. As such, our strategy is regulatory expectations for our 2021 designed to provide financial support Targeted Plan. Our 2021 Targeted for our designated material entities Plan reflects the efforts we have made throughout a resolution scenario to to adhere to the requirements in the sustain the continuity of our critical 165(d) Rule, the 2019 Guidance, the operations. These material entities 2019 feedback letter and the 2020 provide critical services in support targeted letter. of one or more of our critical operations or core business lines. We continue to monitor critical 2.1 Our Resolution Planning Priorities services that are necessary for the To create and maintain a credible plan, continuity of our critical operations we identified and continue to consider and have intercompany and third- the following as our top priorities in party agreements in place that the event of a resolution scenario: contain provisions that promote resolvability. In addition, we have

12 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION further aligned recovery and our key FMUs that include possible resolution planning (RRP) operational actions to be taken throughout capabilities with our operational resolution, (ii) communications plans resilience program, building off to support information sharing, and of our well-established services (iii) a crisis management team to be taxonomy to create an enterprise- accountable for relevant actions and wide services taxonomy (Enterprise communications. We monitor our Services Taxonomy) that supports FMU capabilities on a regular basis both programs. With this and enhance our reporting improvement, State Street has capabilities accordingly. further enhanced its preparedness • Modeling and Reporting Capabilities: to support continued delivery of We have made significant critical operations in a recovery improvements to the existing and resolution scenario. modeling processes and reporting • Maintaining Access to Financial capabilities to enhance the timeliness Market Utilities: FMUs provide and accuracy of communications to the infrastructure for transferring, executive management and Board of clearing, and settling payments and Directors to facilitate critical decision other financial transactions among making, including Support Agreement or between financial institutions. related methodology results. As part of our global custody Furthermore, we are committed to business activities, we interact carrying continuous improvements with FMUs extensively on a daily to further strengthen production basis to execute our clients’ capabilities and create efficiencies. payment, clearing, and settlement • Maintaining Robust Liquidity activities. These activities are Management Capabilities: integral to many of our critical In a resolution scenario, we need to operations, the continuity of which have sufficient funding to successfully must be maintained in a recovery execute our resolution strategy. and resolution scenario. Our resolution planning efforts are

focused on strengthening liquidity To maintain uninterrupted service management capabilities to address to our clients, it is vital for us to any resolution-specific liquidity maintain FMU access throughout challenges. We have further integrated a recovery and resolution scenario. resolution planning concepts into To continue access and forestall our existing liquidity management adverse actions by the FMUs, we capabilities, including the pre- maintain (i) playbooks for each of positioning of liquidity resources

13 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION at entities where they are most likely strengthening our capabilities to to be needed, the calculation of track and project our capital position resolution liquidity execution needs, over the course of resolution. These the calculation of liquidity needs capabilities support a credible under the resolution liquidity resolution strategy that minimizes adequacy and positioning model the risk of systemic disruptions, and further strengthened protects our clients’ assets and capabilities to track and project facilitates the stabilization of the our liquidity position over the course resulting organization for the value of resolution. These are important of our stakeholders. capabilities to support a credible resolution strategy that minimizes The capabilities that we maintain the risk of systemic disruptions, in relation to the above focus areas, protects our clients’ assets and in conjunction with all of our other facilitates the stabilization of the resolution planning work efforts, resulting organization for the value supports our preferred resolution of our stakeholders. strategy, the Single Point of Entry strategy, that is described in the • Maintaining Robust Capital section below. Management Capabilities: In a resolution scenario, we need to maintain sufficient capital to 2.2 Overview of Resolution Planning successfully execute our resolution strategy. To achieve this end, we The Single Point of Entry strategy have further integrated resolution is our preferred resolution strategy. planning concepts and capabilities Under this strategy, in a failure into our existing capital management scenario, only our parent holding framework, including setting pre- company, State Street Corporation positioning guidelines under our (SSC), would file for bankruptcy and Resolution Capital Adequacy and be subject to bankruptcy proceedings. Positioning framework, establishing This would allow SSC’s resources and capital targets above local well other internal resources to be used to capitalized levels for legal entities preserve SSBT and our other material under our Resolution Capital entities. As a consequence, our material Execution Need framework, the entities, including SSBT, our principal regular measurement of resolution banking entity, would be recapitalized metrics against our RRP trigger and be provided with liquidity to continue framework, and further operations. Our core business lines and

14 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION critical operations would continue We recognize that the successful to operate uninterrupted, although execution of our Single Point of Entry likely reduced in scope. Continuity strategy requires sufficient planning of critical operations (particularly for resolution as well as in the periods Payment, Clearing and Settlement leading up to resolution. Recovery and Activities (PCS)) and the underlying resolution are part of a continuum and critical cervices would provide stability as such, we identified events that would to the financial markets and to our generally be expected to occur over clients. To execute the Single Point a time horizon in a resolution scenario. of Entry strategy, a newly organized To facilitate an orderly resolution, holding company would be created. we developed a clear plan to guide SSC’s equity ownership in SSBT and management starting from a baseline the other remaining entities would operating environment all the way be contributed to the new holding through to the eventual bankruptcy company. The new holding company filing and beyond. As illustrated would be transferred to an independent in Exhibit 2, we segmented this private trust and the subsidiaries progression into distinct stages: would continue their businesses as business-as-usual, recovery, runway non-debtor subsidiaries of the newly period, bankruptcy and the resolution organized holding company. period. We clearly defined and prioritized the actions, decisions and Maintaining continuity of critical governance necessary at each stage. operations in both our investment The key activities and decisions management and global custody assigned to each stage would enable core business lines is important to our management and, as necessary, protect our clients and their assets. our Board of Directors (Board), to take Preserving our operations would the appropriate actions to execute our allow for uninterrupted client access resolution strategy in a timely manner. to accounts, securities and other client property globally.

15 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION To support our resolution strategy, to support our resolution strategy. we have a legal entity dedicated to In addition, we maintain a secured serving as an intermediate funding support agreement (Support entity to provide capital and liquidity, Agreement) between our parent (SSC) as necessary, to SSBT and the other and our funding entity (as support material entities prior to, and during providers) and our other material entry into, the resolution period. This entities (as support recipients) that funding entity, State Street Intermediate provides for the contribution of Funding LLC (SSIF), has no client-facing capital and liquidity support to those operations and no third-party creditors. material entities in resolution. SSC We have pre-positioned financial continues to make contributions of resources in our material entities and excess resources to the funding entity our funding entity (including a substantial on an ongoing basis as provided for majority of our parent’s liquid assets in the Support Agreement. and certain intercompany debt assets)

Exhibit 2: Recovery and Resolution Stages

BAU Recovery Runway Period Bankruptcy Resolution Period

RRP-2: RRP-3: RRP-6: RRP-0: RRP-1: Early Late RRP-4: Pre- RRP-5: Bankruptcy N1. N2. Post BAU Stress Recovery Recovery Contribution Contribution Filing Stabilization Stabilization

16 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Below is a summary of each of the • Runway Period: This stage represents distinct periods along the recovery and the point at which resolution becomes resolution continuum. a distinct possibility, and the focus would switch to preparations for • Business-as-usual: This stage resolution. Actions in the runway represents general external market period are intended to prepare for and internal business conditions and the timely bankruptcy filing and can include certain levels of stress orderly resolution of SSC. Before that occur in normal business cycles. the bankruptcy filing, SSC would We have a well detailed Enterprise make a final contribution of most Risk Management infrastructure of its remaining resources to our which regularly monitors activities, funding entity, SSIF, as shown in including pre-defined metrics, for Exhibit 3. The contribution to the timely governance. funding entity and the subsequent support to the material entities • Recovery: We would enter the would be legally required under our recovery stage when experiencing Support Agreement, to which SSC elevated stress levels due to and the funding entity are parties. deteriorating macroeconomic The support to the material entities, conditions and material idiosyncratic as needed, from the funding entity loss event(s). At this stage, we may would help stabilize and maintain see capital losses and liquidity operations throughout the strains of increasing severity. resolution period. In the recovery stage, we would still expect to be able to return to • Bankruptcy: At the appropriate a position of financial strength if the time, our Board would make the appropriate actions, such as balance determination for SSC to file for sheet actions or potential business bankruptcy. divestitures, are taken in a timely • Resolution Period: The remainder of manner. Such actions are intended our resolution strategy is designed to stem further deterioration, avoid to bring our material entities back to failure and eventually bring us back stabilized operations. Actions in this to financial health. stage are designed to restore and maintain market confidence in the surviving entities and to prevent or mitigate any adverse effects of our failure on market financial stability.

17 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Mechanically, after a final contribution to fulfill funding obligations. Overall, of resources to our funding entity, SSIF, our preferred resolution strategy, SSC would not provide any support to the Single Point of Entry strategy, is our material entities. Our funding entity, designed so that only SSC files for which has been pre-positioned with bankruptcy, while SSBT and our other recapitalization and liquidity resources, material entities would continue to would facilitate the recapitalization operate under a new holding company of our material entities and the that is owned by an independent private maintenance of appropriate levels trust separate from the bankruptcy of capital and liquidity to enable them proceedings of SSC. to meet regulatory requirements and

Exhibit 3: Parent Contribution to Material Entities

Current State Street Post-resolution State Street Organizational Structure Organizational Structure

Independent Private Trust

1 3 Final Transfer Contribution SSC New Holding Company

2 Provision of capital Material Entities Funding Other Material and liquidity (Including Entity Entities (SSIF) support Funding Entity)

1 SSC makes final contribution to funding entity (SSIF)

2 Funding entity recapitalizes and provides liquidity to other material entities

3 SSC transfers equity interest in subsidiaries to the new holding company

18 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We have taken a number of actions to financial support from government guide management to move from stage sources nor require taxpayer support, to stage in a timely and orderly manner as losses would be borne by SSC’s to facilitate the successful execution of shareholders and creditors. Additionally, our resolution strategy. This includes the Single Point of Entry resolution a series of carefully calibrated triggers strategy avoids competing resolution to govern the transition between stages, proceedings at different legal entities a collection of playbooks outlining because only our parent company, the actions available to be taken at SSC, would file for bankruptcy. Our each stage, and a set of governance other entities that carry out our critical committees to execute key actions, operations would continue to operate. including a robust communication We would be able to facilitate, if required, framework that facilitates appropriate the potential wind-down or divestiture communications to our regulators, of entities or associated asset sales in clients, vendors and employees among an orderly and planned manner. other key stakeholders. This combination of stages, triggers, playbooks, and We are particularly suited to the Single governance provides the foundation Point of Entry strategy as most of our for facilitating execution of required material entities, core business lines, management and board actions at the and critical operations are concentrated appropriate time under our resolution within SSBT and its subsidiaries. strategy. This foundation supports Under the Single Point of Entry strategy, the escalation of information to senior our clients can continue to receive key management and the Board, the timely services throughout resolution because contribution of financial resources and SSBT and our other material entities capital to our subsidiaries, and the timely are preserved as a globally integrated bankruptcy filing of SSC. business operated by the new holding company. We have planned to maintain the necessary operational Effectiveness of the Single Point interconnectedness throughout of Entry Strategy resolution to support our critical operations, including placing our critical In our view, the Single Point of Entry services and key infrastructure/ strategy best serves our goal of relationships, such as FMU memberships, minimizing systemic risk to the in material entities which would be financial system in the unlikely event recapitalized under the Single Point we experience resolution level stress. of Entry strategy. Our plan does not rely on extraordinary

19 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION The Single Point of Entry strategy plans in the 165(d) Rule, 2019 guidance, satisfies our overarching goals of and the 2020 targeted letter, resolution. Additionally, the Single (2) describing and incorporating Point of Entry strategy is the preferred enhancements to our resolution resolution strategy identified by all US governance framework in response global systemically important banks to lessons learned from the recent submitting resolution plans, as well pandemic experience, and (3) addressing as the FDIC’s preferred strategy for the 165(d) shortcoming related to resolving global systemically important governance mechanisms identified banks under Title II of the Dodd-Frank by the Agencies in the 2019 letter. As Act.7 These considerations further a part of our commitment, State Street support our view that the Single Point also updated its Resolution Plan to of Entry strategy would be the right reflect changes to the organization and strategy for our orderly resolution. its business model, which for 2021 include senior management changes and some material and other noteworthy Changes Since Our 2019 Plan changes. We also replaced State Street Since our 2019 Plan filing, State Street Bank Luxembourg S.C.A. (SSBL) as has continued to incorporate recovery a material entity with State Street Bank and resolution planning principles into International GmbH, Zweigniederlassung our business and daily operations to Luxemburg (SSBI GmbH-Lux) after help strengthen and protect our the merger of SSBL into SSBI GmbH in business, our clients and the wider November 2019, and a resulting change financial system. We view resolution in primary regulatory authorities due planning as a firm-wide commitment to this merger. and a key consideration in our day-to- There have been no other material day decision making, and over the past changes to our resolvability framework, two years, we have devoted significant our fundamental resolution strategy or to resources to continue enhancing our how our strategy would be implemented. capabilities and thereby refining our The business changes noted in this resolvability. The most significant section are appropriately addressed in changes to our 2021 Targeted Plan our Resolution Plan and have been include (1) addressing the requirements incorporated into our resolution strategy. and guidance for targeted resolution

7 Federal Register, Vol. 78, No. 243: https://www.gpo.gov/fdsys/pkg/FR-2013-12-18/pdf/ 2013-30057.pdf.

20 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Senior Management Changes Brexit became effective with the UK’s State Street has undergone a number officially leaving the EU on January 31, of noteworthy changes to its senior 2020 and the expiration of the transition management since 2019. period on December 31, 2020. Ronald O’Hanley was appointed Chairman In anticipation of Brexit, State Street of the Board effective January 1, 2020, developed and implemented plans that in addition to his role as President and would allow it to maintain its servicing Chief Executive Officer since January 1, and operational capabilities, in all 2019. David Phelan’s responsibilities as material respects, upon the UK’s exit General Counsel were expanded in July from the EU Consistent with those 2020 to include State Street’s regulatory, plans, State Street has maintained security and corporate administration significant operations in London while functions globally, while also serving as also transitioning certain services to Corporate Secretary. Michael Richards the State Street Bank International was appointed Chief Administrative GmbH, an EU institution, and other Officer in April 2020; Francisco EU affiliates in order to maintain Aristeguieta was appointed Chief continuity of services to its EU clients. Executive Officer of State Street State Street does not believe that these Institutional Services in June 2020 changes have had an adverse effect and Andrew Erickson was appointed on State Street’s resolvability. As there Head of State Street’s International is continuing uncertainty as to what business and Chief Productivity Officer may be the full implications to global in June 2020. Brian Franz joined financial markets of the UK’s exit State Street and was appointed Chief from the EU, State Street continues Information Officer in January 2020. to monitor and coordinate with the Other senior management changes appropriate regulatory authorities to have occurred, as described in maintain its preparedness to address State Street’s public disclosures. any future regulatory requirements.

21 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.3 Post-Resolution Size and of resolution. A sale (or sales) would Operational Capabilities further shrink our post-resolution size, Following the successful execution our operational footprint and number of the Single Point of Entry strategy, of business units. our parent company, SSC, would be in bankruptcy, while our remaining entities (including SSBT and all its subsidiaries) 2.4 Our Continued Focus on Resolvability would continue to operate. In the hypothetical post-resolution world, Resolution planning is an organizational our critical operations, housed in both priority at State Street. Since filing our global custody and investment our 2019 Plan, we have continued to management businesses, would advance our approach to resolution continue. We would also retain the planning and improve our resolvability. ability to provide a range of services We continue to make investments critical to our clients, as our two core to support the ongoing viability of our business lines and underlying business resolution strategy. These investments structure would be maintained. in time, resources and technology serve to embed resolvability principles into Depending on the circumstances our operating model and governance surrounding our recovery and processes, resulting in enhanced resolution, we may also decide to sell operational capabilities, a more discrete portions of our business. We rational legal entity structure, and have designated certain parts of our an even stronger financial position. business as divestiture options based Our executives and senior management on a rigorous selection process that continue to devote their time and takes into account the need to maintain attention by providing meaningful continuity of the critical operations we development, review and challenge provide. These divestiture options, when of the resolution planning process and exercised individually or in aggregate, are familiar with their responsibilities would generate meaningful financial in implementing our resolution strategy. contributions, which in a recovery Additionally, our investments included scenario could help us avoid bankruptcy contributions from personnel across and in a resolution scenario could help our global organization involving us stabilize our post-filing organization. specialists like risk, treasury, technology, legal, human resource, finance and The decision to exercise such operations to fulfill our responsibilities divestiture options would ultimately to our clients, shareholders, regulators depend upon the specific facts and and communities in developing a robust circumstances prevailing at the time resolution plan. The recent pandemic

22 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION experience, together with a number • Capital: describes our efforts to of simulation exercises conducted to enhance our capital management test our resolution capabilities, have framework and provide for sufficient also helped us to further enhance our levels of capital to successfully capabilities and strengthen the recovery implement our resolution strategy and resolution framework. • Liquidity: describes our efforts to In addition, State Street has further enhance our liquidity management aligned its RRP framework with framework and provide for sufficient its operational resiliency program, levels of liquidity to successfully leveraging the existing RRP approach implement our resolution strategy to identifying and mapping critical • Operational: describes our efforts services in order to create an to embed resolvability principles enterprise-wide taxonomy (Enterprise into our operational processes, Services Taxonomy) that supports procedures, and systems, including: both RRP and business continuity and Shared and Outsourced services; operational resiliency. RRP’s critical Management Information Services; services and critical operations have Payment, Clearing and Settlement been incorporated into and informed services the prioritization of our business continuity planning processes. • Legal Entity Rationalization and Separability: describes our efforts to The remainder of this section strengthen our legal entity structure summarizes the key areas that we and facilitate the separability of have maintained and enhanced in potential divestiture options order to support resolvability across our business: We recognize that improving and • Governance Mechanisms: maintaining our resolvability is an describes our plan for identifying iterative process. As our business and responding to stress and entry evolves, we continue to devote the into resolution, comprising stages, resources and talent needed to triggers, and playbooks as well as support resolution planning. an intermediate funding entity and Support Agreement to obligate execution of the Single Point of Entry resolution strategy at the appropriate time

23 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.4.1 Governance Mechanisms We believe that successful execution of our resolution strategy is dependent For our Governance Mechanisms, we maintain on the right people, having the right and update a detailed plan for resolution information, delivered in time for them comprising crisis continuum stages, triggers to make effective decisions. To support and playbooks, including the following: this, we maintain an integrated plan for • Framework with the key stages of recovery recovery and resolution that would help and resolution, starting from BAU, leading senior management and the Board make up to the decision to file for bankruptcy, and appropriate decisions and execute key through to the subsequent stabilization period actions at the right time.

• Capital and liquidity trigger points We have defined clear stages of the calibrated to advance the recovery and recovery and resolution process, starting resolution stages that are linked to specific from BAU, leading up to the decision actions and decisions to file for bankruptcy and through the subsequent stabilization period. A series • Detail on a comprehensive governance of triggers tied to our financial condition committee structure to facilitate the execution mark the transition from one stage to of our resolution strategy the next and move us through the stages • A set of integrated playbooks detailing of recovery and resolution. These triggers the actions available, the types of information are calibrated to allow sufficient time to required and responsible parties at each stage. take the necessary actions. The triggers This framework outlines a clear management minimize discretion regarding playbook decision making and approval process that activations and hold us accountable to coordinates Board of Directors and Executive our recovery and resolution plans by Management actions with the engagement guiding movements between stages using of the businesses. This provides for an measures of our financial condition rather appropriate information flow that supports than qualitative decision-making alone. timely decision making and transparent We believe these triggers are objective, communications. comprehensive and meaningful indicators of deteriorating financial condition. • State Street Intermediate Funding LLC, our funding entity, with appropriate governance including a secured support agreement to provide support to SSBT and other material entities prior to SSC’s bankruptcy filing

24 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We maintain a governance committee Executive Officer and reports directly structure to inform and charge the to the Board, as shown in Exhibit 4. right individuals to take action at the CERT-R is supported by crisis appropriate times in any recovery or management teams linked to specific resolution scenario. The final decision- areas of expertise. Each of these crisis making authority throughout recovery committees is guided by a detailed and resolution rests with the Board, playbook and has clearly defined lines which is guided by the board governance of communication, escalation and playbook. At the senior management decision-making responsibilities. level, decisions are driven by the Crisis The hierarchy, from CERT-R down Executive Response Team for Recovery through the crisis committees and and Resolution Planning (CERT-R). operational teams in our businesses CERT-R is a recovery and resolution- and functions, provides a clear structure specific governance committee that is for escalation of information to the responsible for coordinating execution appropriate parties and execution of our recovery and resolution actions. of responsibilities throughout each CERT-R is chaired by our Chief stage of recovery and resolution.

Exhibit 4: CERT-R Structure

Crisis Board CERT-R Committee

CERT-R Overview

Membership Responsibilities • • Chief Risk Ocer Chairman, President and • Timely coordination of Chief Executive Ocer (alt. chair) execution of SSC’s recovery (chair) • Chief Administrative and resolution strategy • Chief Operating Ocer Ocer • Monitoring of financial • Chief Financial Ocer • International CEO health of firm • General Counsel • Resolution Ocer • Board escalation (non-voting) • Implementation of timely bankruptcy filing, as directed by the Board

25 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We maintain a set of governance the operational playbooks is to inform playbooks to coordinate the execution a reader how our operations work, of recovery and resolution actions how the operational crisis teams should and decisions required to implement manage and sustain our operations our resolution strategy. Our library in resolution and how coordination of playbooks includes a management between each operational crisis team, master playbook and a communication CERT-R and the other operational areas playbook (together, management should be maintained. In particular, playbooks), operational playbooks, playbooks contain detailed contingency and board playbooks as shown in planning for communications, staffing Exhibit 5. The management master needs, and other contingent actions. playbook sets the foundation for our playbooks by connecting the trigger We have developed board playbooks framework to CERT-R actions to activate that are designed to involve the each stage, activate crisis committees appropriate material entity boards and and their related operational playbooks, governance committees in oversight and coordinate the execution of related and decision-making at each of the playbook actions. The management key points in recovery and resolution. master playbook contains all necessary The playbooks for our most important details for CERT-R processes supporting entities are the most extensive. They recovery and resolution, including provide detailed discussions of board board escalation and notification, actions across each stage, including and stage and playbook activation. detailed actions for the boards in the event of SSC’s bankruptcy filing. Other Our operational playbooks describe board playbooks describe the major the tactical steps to be taken to execute decisions and actions that a board key actions to implement our resolution would need to make with individualized strategy. They contain an analysis of content specific to that entity. the business needs, resource needs, and operational protocols required Simulation exercises have been to maintain operational capabilities conducted globally, for a number throughout a resolution scenario. of years, to test elements from our Some of the topics outlined in the playbooks as well as confirm that operational playbooks include actions our crisis governance framework is to retain key personnel in a crisis, fit for purpose. These have provided actions to maintain FMU access, results that have enhanced our RRP management of our securities lending framework and capabilities as well portfolio, and actions to facilitate client as elevated awareness across transitions. The primary focus of the organization.

26 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 5: Governance Playbooks In addition to the integrated governance plan described above, we have in place two critical elements to support our resolution strategy: a dedicated funding Board Playbooks entity (State Street Intermediate Funding LLC, or SSIF) and a secured support agreement. With the execution of the Governance Support Agreement, our parent, SSC, Framework contributed the majority of its liquid assets and certain intercompany debt

Management assets to SSIF, and it continues to make Playbooks additional contributions to SSIF in accordance with the Support Agreement. SSIF holds pre-positioned resources so Trigger Framework that it is able to recapitalize and provide liquidity support for our material entities in the event of resolution. The Support Operational Agreement is a secured contractually Playbooks binding mechanism designed to provide for the availability of those resources and for their use on a timely basis to recapitalize and provide liquidity to our material entities. The Support Agreement and SSIF together would enable us to separate SSBT and our other material entities from SSC as quickly and cleanly as possible in the event of a bankruptcy filing.

We have further improved our governance processes related to the execution of the Support Agreement in response to the 2019 feedback letter. Refer to Section 2.6 Actions to Address the Shortcoming on Governance Mechanisms for a description of our remediation and enhancement efforts.

27 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.4.2 Capital To enhance our resolvability and to provide for sufficient capital and State Street’s existing capabilities would resources to successfully implement allow for a successful implementation of our our resolution strategy, resolution resolution strategy and the stabilization of our planning concepts are integrated into material entities in a resolution scenario. From our capital management framework. a capital standpoint, these capabilities include: The existing capital management • A comprehensive capital framework that framework addresses potential integrates Resolution Capital Adequacy and vulnerabilities and would allow our Positioning (RCAP) and Resolution Capital recapitalized material entities to meet Execution Need (RCEN) across all material well-capitalized levels throughout entities with regulatory capital requirements a potential resolution period and restore regulator, client and market confidence. • Minimum pre-positioned loss absorbing capacity under the RCAP framework, which Our resolution capital framework incorporates various loss scenarios and comprises RCAP and RCEN: considers any frictions that may exist in • Our RCAP framework is designed to transferring capital between entities in provide for the appropriate positioning a resolution scenario and mix of loss absorbing capacity at • The anchoring of RCEN in specifiedpost- each of our material entities to meet bankruptcy recapitalization targets for regulatory capital requirements and capital ratios at material entities with support the execution of our resolution regulatory capital requirements, with these strategy. Loss absorbing capacity targets above regulatory well-capitalized includes our Tier 1 capital as well as or equivalent levels qualified long-term debt. Our RCAP framework takes into account • Minimum contributable resources held at applicable US and international certain material entities to support subsidiary regulatory requirements, stress capital needs testing analyses, and qualitative • Financial modeling capabilities, including factors. These factors are used in integrated resolution-scenario RCEN our RCAP framework to determine forecasts for material entities with regulatory the balance of pre-positioned loss capital requirements absorbing capacity and contributable resources we need to maintain at each applicable material entity in BAU.

28 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION • RCEN is our estimate of the capital RCAP and RCEN metrics are embedded needed to maintain well-capitalized into our overall governance framework. levels and restore market and client Both metrics represent a critical confidence post SSC’s bankruptcy. indicator that we measure, monitor RCEN includes sufficient capital to and report. RCAP aids management account for any additional capital in determining the balance of pre- needs that may arise post- positioned loss absorbing capacity bankruptcy. Our RCEN targets are and contributable resources we need set for each material entity to meet to maintain at each applicable material regulatory capital requirements entity in BAU. RCEN has been integrated of local jurisdictions. RCEN is a key into our trigger framework to direct our input into our plan for SSC’s progression through key recovery and bankruptcy filing and its timing. resolution stages. These mechanisms would give management and the Board To operationalize these concepts, the information they need, to know we utilize the methodologies defined when to execute our resolution strategy in our framework and the forecasting and ultimately, if necessary, file for capabilities we have developed in bankruptcy when we find ourselves order to calculate RCAP and RCEN in a resolution scenario. periodically in BAU and daily during Collectively, the establishment, stress. Additional resolution measures operationalization, and embedding of (e.g., liquidity, discussed in Section the RCAP and RCEN frameworks into 2.4.3 Liquidity) complement these our BAU practices help material entities resolution capital concepts. Together, maintain sufficient capital to successfully these capabilities allow us to provide implement our resolution strategy, meet management and the Board with the their projected needs, and stabilize information needed to monitor a crisis, following a resolution scenario. make decisions, and take actions in a timely manner.

29 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.4.3 Liquidity

State Street maintains a comprehensive • Methodology and capabilities to set of liquidity frameworks and produce RLAP for each material capabilities supporting the ability to entity, the liquidity needed to cover successfully implement our resolution minimum liquidity requirements strategy and stabilize our material and net outflows over a severe entities in a resolution scenario. 30-day liquidity stress scenario Key elements of these liquidity that reflects the idiosyncratic frameworks and capabilities include: liquidity profile and risk of the firm

• Refined liquidity assumptions • Comprehensive framework that used across RLAP and RLEN, integrates Resolution Liquidity improved modeling capabilities Adequacy and Positioning (RLAP) to enhance data capture and and Resolution Liquidity Execution analytics, and further integration Need (RLEN) across all material of these capabilities across our entities liquidity management frameworks • Determination and monitoring of (RLEN, RLAP, Liquidity Stress minimum pre-positioned liquidity Testing) amounts for each material entity • Incorporated post-bankruptcy under the RLAP framework, which liquidity needs, included in RLEN, incorporates appropriate balancing into the trigger of liquidity resources between SSC, material entities, and funding entities

• Methodology and capabilities to produce RLEN for each material entity, the liquidity needed to execute our resolution strategy, which includes forecasts of minimum operating liquidity requirements, including intraday liquidity to support continuous access to FMUs, and potential peak funding needs to stabilize material entities in a resolution period

30 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION We maintain and continue to enhance Our resolution liquidity framework a comprehensive liquidity management comprises RLAP and RLEN: framework to forecast, monitor, and • Our RLAP framework is designed manage our liquidity needs. In a to measure the liquidity position resolution scenario, we may experience of each material entity and provide the withdrawal of customer deposits, for enough readily available liquidity the unwind of certain businesses, the to meet needs that may arise at each loss of intraday credit from our FMUs material entity. Specifically, RLAP on an uncollateralized basis, and other is the amount of liquidity needed by potentially adverse actions that could each material entity, projected at place significant stress on our liquidity the time of measurement, to endure position. In addition, we may not be able at least 30 days of financial stress to transfer funds freely between our manifested as liquidity stress entities in resolution given that outflows. regulators of each entity could restrict the movement of funds (i.e., “ring- • Our RLEN framework estimates fencing”) – the result of which would the liquidity needed to allow our prevent a funding surplus in one entity remaining material entities to from being available to support funding continue to operate throughout needs in another entity. To support our resolution after SSC’s bankruptcy resolvability, these resolution planning filing. More specifically, RLEN constraints and risks are integrated includes expected liquidity into our RLAP and RLEN frameworks. obligations, referred to as peak These enhancements mitigate potential funding needs, and minimum vulnerabilities and are designed to operating liquidity requirements maintain sufficient levels of liquidity to for each material entity to continue successfully implement our resolution to operate, as shown in Exhibit 6. strategy and to support our material RLEN is a key input into our plan entities, critical operations, and clients for determining when SSC may throughout resolution. need to file for bankruptcy.

31 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 6: Components of RLEN Model

Starting liquidity position

Pre- Liquidity needed Bankruptcy before parent Stress bankruptcy filing

Peak Funding RLEN

Available Liquidity Need (Liquidity needed Bankruptcy Minimum after parent Operating bankruptcy Liquidity filing)

Time

Our RLAP framework is a key component monitoring, and forecasting capabilities of our liquidity management and is allow for periodic measurement of codified in our liquidity policy. We place RLEN in BAU and daily measurement liquidity so that there are resources during stress. Additional resolution readily available to meet needs that may measures (e.g., capital, discussed in arise at any of our material entities. Section 2.4.2 Capital) complement Meanwhile, our RLEN framework is these resolution liquidity concepts. used to estimate our liquidity needs, To determine the level of liquidity risk post-bankruptcy and through resolution. at each material entity on an ongoing Together, these frameworks facilitate basis, we compare the calculated the continuation of operations throughout RLAP and RLEN quantities against resolution by making sure we have our available liquidity resources, which sufficient liquid assets at all times. consist of cash and high quality liquid assets. These capabilities allow us to In addition, these frameworks are provide management and the Board aligned to our internal liquidity stress with the information needed to monitor testing processes and our existing daily a crisis, make decisions, and take liquidity capabilities. Our measurement, actions in a timely manner.

32 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Our enhanced liquidity management Together with the capital work efforts framework is fully embedded into described in Section 2.4.2 Capital, the our overall governance framework. liquidity management framework helps Both RLAP and RLEN are integrated us determine and meet both our short- into our trigger framework to direct our term and long-term financial needs to progression through key recovery and successfully implement our resolution resolution stages. These mechanisms strategy and stabilize following also serve to give management and a resolution scenario. the Board the information needed to know when to execute our resolution strategy and ultimately, if necessary, file for bankruptcy.

2.4.4 Operational

To support operational continuity in resolution, State Street has developed and continues to maintain a comprehensive shared services framework. Capabilities of this framework include detailed mapping of critical services that support the critical operations provided by State Street; identification of legal entity providers and recipients of these services; and mapping of resources such as personnel, technology platforms, and third parties required to perform these critical services.

The Shared Services framework allows State Street to understand the strategic interconnectedness of the service delivery model required to maintain its designated systemically important functions. Key elements of the framework include:

• Services Taxonomy technology platform known as the Atlas Platform, which records criticality designations and detailed mapping

• Centralized service mapping data consolidation and reporting capabilities that facilitate on demand access to resolution critical information

• Intercompany and third party contracts that support critical services with continuity provisions, located in a searchable repository

33 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION A key element in resolution planning we have established governance is providing for the continuity of critical structures in place that embed operations provided by material entities. operational continuity as a key principle Consequently, we continually consider in decision-making as our business our operational interconnectedness and continues to grow and evolve. have a proactive approach to support our resolution strategy. Sections 2.4.2 Shared and Outsourced Services Capital and 2.4.3 Liquidity outline how As a global business that operates in we would set aside sufficient capital many jurisdictions, our material entities and liquidity resources for this purpose, provide and receive services that support but even assuming financial adequacy State Street’s resolution strategy. in our material entities, certain functions In a resolution scenario, we are well and capabilities that are indispensable positioned to maintain continuity of in day-to-day operations may be at critical services provided by material risk in a resolution scenario. Examples entities that support critical operations, include critical services provided under as a result of robust processes in place contracts with third-party vendors and to record the location, required resources, access to management information and recipients of these services. systems capabilities. To mitigate the risk of the loss of these services and Operational continuity in resolution capabilities, we assess our business requirements are embedded in the operations to identify potential key objections of our ongoing Shared weaknesses and implement supporting Services processes. As part of these measures and controls. In addition, objectives, we maintain a comprehensive the infrastructure projects we have services taxonomy, the Services implemented to strengthen our Taxonomy, to categorize all of our management information systems internal services and identify those and information technology keep that are critical services. For these State Street operationally prepared critical services, we identify the to execute our resolution strategy. resources required to support these In particular, these projects enable services in order to maintain continuity the continuity of shared services, in a resolution event. The mapping of including continued access to building critical services informs our planning facilities, IT vendors, and FMUs. We that in turn enables our material also have management information entities to maintain these services systems in place to provide the during resolution by allowing us to necessary information needed to place the resources required to sustain facilitate resolution readiness and these services in the appropriate the orderly execution of our resolution material entities. strategy. Across these work efforts,

34 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION To support our Services Taxonomy, we FMUs. This framework, built on maintain an integrated platform, known quantitative and qualitative parameters as the Atlas Platform, that centrally and reviewed on an annual basis, receives and consolidates key resolution serves as the foundation of our annual information. This platform facilitates identification of key FMUs, i.e. those reporting for material entities, critical FMUs that are critical to our resolution operations, and core business lines, strategy and operational continuity including critical services and required (including central securities depositories, resource mapping (personnel, facilities, agent banks, and payment systems). systems, vendors, memberships, To facilitate continued access to these intellectual property) that support these key FMUs, we maintain playbooks services. The Atlas Platform integrates for each key FMU, conjointly with data from our mapping systems of the respective business unit subject record on a dynamic basis, enabling matter experts, detailing the actions continued resolution preparedness and and decisions that we will take visibility to interconnectedness across throughout recovery and resolution, the organization. with the goal to enable the continuity of our PCS services. In addition, our global policy that governs RRP intercompany and Our FMU framework and PCS Master critical third-party service agreements Playbook, as well as our key FMU requires inclusion of the necessary playbooks are reviewed regularly provisions for maintaining continuity and updated to reflect applicable in a recovery or resolution scenario. regulatory requirements as well as To facilitate the administration of any operational and organizational this policy, we have established the changes within our organization and infrastructure to search, store, review, at the key FMUs. and manage such contracts across the enterprise. We also conduct significant analyses of the liquidity requirements and funding arrangements related to each FMU, Payment, Clearing, and including the intraday needs under Settlement (PCS) Activities recovery and resolution scenarios. In our role as a global custodian bank, As a result of the collaboration between continuity of our critical operations is our payment, clearing, and settlement, dependent on continued access to key and liquidity resolution work, we set FMUs. FMUs are utilities that enable aside, as part of our liquidity framework, payments and the clearing and liquidity resources to maintain FMU settlement of financial transactions. access in times of stress. We have developed and maintain a framework to identify our critical

35 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Management Information Systems Collateral Management Timely access to relevant and accurate As part of our day-to-day business, data is critical for decision-making we pledge collateral to counterparties in a resolution setting. It is also and receive collateral pledged to us by important in BAU settings as we counterparties. This includes collateral- continuously promote resolvability related activity across our various across the enterprise. affiliates. In a resolution scenario, the ability to identify, aggregate, track, In support of these objectives, value and report such collateral is we maintain a centralized catalog integral to maintaining transparency consolidating resolution-critical and facilitating the unwind of positions. reports across various business and functional areas. In resolution, To this end, we have continued to this catalog, known as the Resolution enhance processes and management Critical Reporting Framework, would information systems capabilities for provide information to make timely collateral management so that collateral and well-informed decisions. We have can be more easily tracked and processes and controls in place to managed. This includes digitizing our provide for information that is up-to- collateral contracts so they can be date, reliable, and available at the searched by key contract terms and appropriate level of granularity to enhancing existing capabilities to track guide decision-making. collateral and their sources and uses to support timely reporting. We also We have a governance process in maintain a global collateral management place to continuously review our policy to serve as a single source of management information systems governance overseeing our principal platforms across the organization to collateral management business support resolvability. These governance where we are a counterparty in review efforts not only span across the transactions. many functional areas and business units but also include feedback from senior management to enhance processes as applicable.

36 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.4.5 Legal Entity Rationalization and Legal Entity Rationalization Separability Principles and Criteria Consistent with sound business To simplify and strengthen our legal entity practice, we have always viewed prudent structure and promote the separability of management of our legal entities as a top our divestiture options, we: priority. Since structural complexity may • Maintain Legal Entity Rationalization impede the successful and orderly (LER) principles and criteria as part of execution of our resolution strategy, we our resolution planning and embedded established and implemented clear and the criteria into our BAU environment to actionable Legal Entity Rationalization guide decision-making concerning our Criteria (LER-C) to promote a simple legal legal entity structure entity structure, as well as embedded resolvability principles in our broader • Maintain clean funding pathways between business processes. material entities to support their capital and liquidity needs under a potential We continually apply the LER-C to our legal resolution scenario entity structure. Our corporate structure was simplified by, among other initiatives, • Maintain a formalized LER governance removing select entities. We continually structure including revised charters, review our existing intercompany policies, processes and procedures to arrangements and funding pathways identify ongoing LER criteria responsibilities to confirm that our structure supports and keep LER integrated in our internal unimpeded delivery of capital and liquidity governance structures to our material entities. • Maintain rational legal entity organizations In addition to aligning our existing legal for each divestiture option that are aligned entity structure and funding arrangements with the LER criteria and facilitate the to our LER-C and our resolution strategy separability of each option needs, we maintain an LER governance • Maintain playbooks and data rooms structure designed to promote compliance for each of the divestiture options to with the LER-C on an ongoing basis. Our support an expedited standing Legal Entity Oversight Committee oversees enforcement of the LER-C across our legal entity structure and we apply integrated resolvability considerations into our governance processes related to new products, business processes outsourcing and intercompany funding/guarantee arrangements. In short, the LER-C serves to embed LER in BAU decision-making, which in turn strengthens our resolvability.

37 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Clean Funding Pathways To facilitate a potential transaction, As a component of evaluating our where needed, we restructured our resolvability, we regularly analyze divestiture options in a manner that our legal entity structure and the enable their efficient sale and separation financial and operational from the rest of State Street. This interconnections among our legal restructuring included separating entities to detect any impediments the legal entities these businesses to the movement of capital or liquidity operate in or receive critical services contemplated under the Support from and designing their funding Agreement and the Single Point of Entry arrangements to facilitate separability. strategy. The purpose of this analysis is The application of the LER-C to our to confirm our ability to provide capital structure has previously resulted in and liquidity support where it organizational changes, including the is needed in a resolution scenario. addition of new entities that facilitate separability, and the LER-C is also We have identified at least one, and applied to proposed changes to our in most cases multiple, clean funding structure to ensure they will continue pathways that would be available, to to facilitate separability. We have the extent necessary, between a source also developed and maintain, for each of such funding, including State Street option, divestiture playbooks designed Intermediate Funding LLC (SSIF), and to expedite decision-making and deal the material entities that would be the execution, including the qualified ultimate recipients of such funding. potential acquirers for each business, as well as data rooms containing Separability information pertinent to a potential In a recovery and resolution scenario, divestiture of the options, each of we retain the option of selling discrete which support the sales process so portions of our business to raise the divestitures can be set in motion additional funds. We have identified four rapidly if needed. divestiture options, each representing discrete operations that could be sold or transferred in recovery or resolution. The options would provide, individually or in combination, a meaningful capital and liquidity infusion to our firm in recovery or resolution under different market conditions.

38 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.5 Our Resolution Governance on the level and types of risk that we Structure and Risk Management are willing to take in the course of Processes executing our strategies and growing Strong and effective governance is our business. Our Enterprise Risk a key component of our approach to Management group is responsible resolution planning. We have enhanced for overseeing the implementation our governance structure and risk and monitoring of our overall risk management processes, and we management infrastructure. continuously seek to strengthen To complement and strengthen our our resolution planning oversight risk management framework, risk and controls. management is instilled in our firm’s culture, with Risk Excellence as our 2.5.1 Approach to Risk Management overarching, top-down, bottom-up approach to risk management across Risk is inherent in operating in the the firm. This starts at the “top of the financial services industry. One of the house” with our Board and extends to most important frameworks guiding each and every employee. We also have our activities is our Risk Appetite three lines of defense to facilitate the Statement. This Risk Appetite implementation of the goals, policies Statement is approved annually by and procedures put in place by the Board the Board and governs SSC and its and management to support a robust subsidiaries on a consolidated basis, risk culture, as shown in Exhibit 7. serving as firm-wide risk guidance

39 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION The first line of defense for our RRP line oversight of business areas Program consists of the business units and corporate functions and their and support groups that are subject conformance with various RRP- matter experts and owners of specific related regulatory requirements. workstreams, working alongside the Lastly, our third line of defense, recovery and resolution planning Corporate Audit, is responsible for office (RRP Office). State Street’s reviewing the effective performance Enterprise Risk Management and of the first two lines of defense. Compliance area represents the These three lines strengthen our second line of defense related to risk risk management framework and management and includes the RRP act as safeguards to mitigate the Office and Compliance. Responsibilities possibility of material risks arising of the RRP Office include second without being addressed.

Exhibit 7: Three Lines of Defense

Governance Strong Board and management oversight sets “tone from the top” and establishes corporate risk appetite and strategy

First Line of Defense Second Line of Defense Third Line of Defense

This includes State Street’s This includes risk oversight This is the Corporate Audit business units and support groups. Their role is to function. Its role is to provide groups. Every employee establish and monitor independent assurance owns and manages risk and adherence to the risk and relative to risk management is responsible for their own control framework. and internal controls. internal control environment.

Culture Overall culture that permeates the organization and prioritizes Risk Excellence in everything we do.

40 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 2.5.2 Resolution Planning Corporate of our organization, as shown in Governance Structure and Processes Exhibit 8. The Board and its Risk We leverage our existing governance Committee oversee the recovery structure and risk management and resolution planning process. processes to oversee resolution Together, they devote substantial efforts, including the development and time and effort to resolution planning. completion of our 2021 Targeted Plan. Prior to submission, the Risk The responsibility for resolution Committee and full Board reviewed planning starts at the highest level and approved the 2021 Targeted Plan.

Exhibit 8: RRP Governance Structure

Board of Directors

Risk Committee

Management Risk and Capital Committee (MRAC)

RRP Executive Review Board (RRP ERB)

RRP Oce

RRP Global Governance RRP Steering Steering Group Committee (RRP SG) (GGSC)

First Line of Defense – Business Units and Working Groups Board Level

Second Line of Defense – Risk Oversight Groups Management Level

Third Line of Defense – Corporate Audit Advisory, Verification and Assurance

41 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION At the management level, senior The Recovery and Resolution Planning executives of the firm are heavily Steering Group (RRP SG) is an advisory engaged with the recovery and group of senior executives from resolution planning process. across our firm. This advisory group is The Management Risk and Capital comprised of global business executives Committee (MRAC) is the executive and subject matter experts from management committee primarily corporate, operations and information responsible for the 2021 Targeted Plan. technology. The RRP SG is regularly The MRAC supports the Board as the updated on the direction of our resolution firm’s most senior risk management plan and provides practical feedback on body and is co-chaired by our Chief the implementation and integration of Risk Officer and Chief Financial Officer. our plan. The recovery and resolution planning Executive Review Board (RRP ERB) Additionally, our Global Governance is a sub-committee of MRAC and Steering Committee (GGSC) oversees is the main governance body that and coordinates our non-US international proactively shaped the strategic recovery and resolution planning direction of the 2021 Targeted Plan efforts which contributes to the global by providing executive oversight, harmonization of our resolution review, and challenge of key aspects preparedness across different of our resolution planning efforts and regulatory regimes. The GGSC, which approach. The RRP ERB is comprised includes US membership, provides of six senior executives: our Chief Risk strategic direction to the development Officer, Chief Administrative Officer, of non-US international recovery and Treasurer, Resolution Officer, Regulatory resolution plans for local regulators. Counsel, and General Auditor. Combined, The Board, Risk Committee, MRAC they have substantial experience across and RRP ERB are collectively risk management, treasury and finance, responsible for governance oversight legal and regulatory disciplines as and accountability for the 2021 well as business controls and audit. Targeted Plan. Equally important is The RRP ERB brings an organization- management responsibility for the wide perspective to resolution planning execution of efforts related to the 2021 execution and instills resolution Targeted Plan and implementation of concepts in business decisions. related regulatory guidance.

42 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION These responsibilities are organized planning, and oversees the execution under the RRP Office, which is led of efforts on a day-to-day basis. by our Resolution Officer, a senior Within the RRP Office are team leads executive who reports directly to responsible for facilitating the our Chief Risk Officer. The RRP Office development of and collaborating guides the creation and refinement on different focus areas of the 2021 of our 2021 Targeted Plan, instills Targeted Plan with oversight and an integrated approach to resolution direction from our Resolution Officer.

Exhibit 9: RRP Office Resolution Plan Focus Areas

Project Management and Program Governance Multiple Resolution and Recovery Planning Teams Capital Shared Services Legal Entity Rationalization Liquidity Collateral Management Communication Strategy Governance: Payment, Clearing and Management Information Playbooks and Triggers Settlement Systems Governance: Pre- Legal Obstacles Personnel Management Bankruptcy Parent Support

Material Entities Global Derivatives Recovery and Separability Client Mobility Contract Documentation Securities Lending

Similar to our overall risk framework, Management, and our Risk we used three lines of defense to Superstructure group. These groups provide review and assurance of review key components of the RRP the 2021 Targeted Plan. framework. In addition, our Model Validation Group also provides second • First Line of Defense: business line support to assess quantitative unit and corporate function owners models developed as part of our of sections serve as the first line resolution planning efforts. of defense for RRP. This is a result of the integration of RRP responsibilities • Third Line of Defense: The third line into business processes and enables of defense is the Corporate Audit appropriate RRP considerations in team. Corporate Audit is responsible day-to-day business decisions. for assessing whether proper controls are in place and whether • Second Line of Defense: The second the structure we designed for the line of defense includes Enterprise resolution planning process is sound Risk Management, including the RRP and being implemented as intended. Office, Global Treasury Risk

43 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION In addition, State Street’s legal team elements of our RRP framework advises each of the three lines of that underpin the operationalization defense throughout the resolution of the Support Agreement. Initiatives planning process which includes supporting these enhancements a review of all critical components received a high level of engagement of the plan to comply with regulatory from State Street’s executive guidance. Additional advisory input management, including comprehensive is sought from relevant subject matter reviews of related governance, experts as deemed necessary reporting, and escalation processes. throughout the planning process. As a result, we implemented Just as important as the planning meaningful enhancements to our RRP process is the operationalization of framework, including refinements to the plan components to maintain forecasting capabilities, controls resolvability as a priority for our execution, management reports, roles organization. We thus strive to fully and responsibilities, and escalation incorporate our resolution planning protocols to support the timeliness of processes into our everyday business communications and decision-making. model and BAU operations. We believe this allows us to maintain our ability to successfully execute the resolution 2.7 Targeted Information Request strategy in the unlikely event of a crisis, The targeted plan structure as outlined even as our business continues to in the 165(d) Rule provides the Agencies adapt, grow and evolve. an opportunity to seek specific information in the form of “targeted information requests,” which are 2.6 Actions to Address the Short- resolution-related key areas of focus, coming on Governance Mechanisms questions, and issues that must also In their 2019 feedback letter, the be addressed as part of a targeted Agencies identified a shortcoming in our plan. For the 2021 Targeted Plan, the 2019 Plan related to the implementation Agencies in the 2020 targeted letter of governance mechanisms intended have asked that we (and the other to facilitate our Single Point of Entry domestic globally systemically strategy through the timely deployment important banks) discuss the linkages of internal capital and liquidity. between our pandemic response and The remediation actions taken to resolution-related capabilities through address this shortcoming include the timeframe ending December 31, process enhancements and additional 2020 as well as lessons learned, capabilities testing focused on core including whether such lessons have

44 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION been or will be incorporated into our continuity of operational services resolution planning infrastructure. and access to required technology. The 2021 Targeted Plan responds to the Similar forums were in place to monitor 2020 targeted letter by describing the financial and market volatility impacts linkages and lessons learned in detail. at the outset of the pandemic. In addition, there were regular and frequent State Street’s response evolved as communications with regulators, clients, the pandemic crisis unfolded across employees and other key third parties. the globe. What began as a health crisis Also, to support business area efforts quickly turned into a unprecedented during this crisis event. State Street’s operational event. Throughout the Enterprise Risk Management (ERM) challenges faced during this event, teams have focused on development the bank consistently prioritized the of pandemic-related stress scenarios, continuity of critical services in order financial exposure monitoring, to maintain the stability of critical completion of service capacity analysis, operations. In addition, at the outset and adjusting oversight of operations of the pandemic when market volatility and technology risk vulnerabilities spiked, State Street closely monitored in order to align with remote its financial position particularly as working conditions. the bank focused on supporting client transaction settlement and supporting The recent pandemic experience Federal Reserve programs. has demonstrated that State Street’s crisis infrastructure supports timely While the situation has now begun and effective decision making. We to stabilize in the US and other regions quickly leveraged capabilities that where we have significant operations, were created for resolution event State Street continues to monitor purposes, which were built upon operations closely, particularly in existing operating processes. locations where the pandemic remains While the pandemic did not trigger an ongoing threat. This includes a resolution event, the experience a careful and measured approach reinforced the effectiveness of our to plans for employees to return to resolution planning efforts to address the office. similar objectives. Throughout the pandemic, State Street was As part of our pandemic response, able to draw upon the enhanced State Street activated its crisis communications capabilities, services response framework, including mapping data, and operational executive forums where reporting playbooks that had been developed and strategy were reviewed to support and refined through resolution rapid decision making to maintain planning efforts.

45 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3. ADDITIONAL INFORMATION

3.1 Description of Core Lines across the globe. As most institutional of Business investors cannot economically or We have two core business lines: efficiently build their own technology and operational processes necessary • Global Custody to facilitate their global securities settlement needs, our role as a global • Investment Management trust and custody bank is generally to aid our clients to efficiently perform We delivered services to clients services associated with the clearing, in more than 100 markets, with over settlement and execution of securities 39,000 employees as of December 31, transactions and related payments. 2020, as shown in Exhibit 10. By These activities are important leveraging the strength of our global to maintaining stability in the network and an integrated technology financial markets. infrastructure, we provide our clients with a worldwide platform for growth Our Global Custody products and and create custom-tailored solutions services include: custody; product that can support investment strategies accounting; daily pricing and in virtually any market. administration; master trust and master custody; depot bank services 3.1.1 Global Custody (a fund oversight role created by non- US regulation); recordkeeping; cash 3.1.1.1 US Business management; foreign exchange, Our global custody line of business brokerage and other trading services; performs core custody and related securities finance and enhanced value-added functions, such as custody products; deposit and short- providing institutional investors with term investment facilities; loans and clearing, settlement and payment lease financing; investment manager services. Our financial services and and alternative investment manager products allow our large institutional operations outsourcing; performance, investor clients to execute financial risk and compliance analytics; and transactions on a daily basis in markets

46 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION financial data management to support markets, including, among others, institutional investors. Australia, Cayman Islands, France, Germany, Hong Kong, Ireland, Italy, Included within our Global Custody Japan, Luxembourg, South Korea business is Charles River Systems, Inc. and the UK. (CRD), which we acquired in October 2018. The Charles River Investment 3.1.1.2 Global Business Management solution is a technology We are one of the few custodians with offering which is designed to automate the ability to provide a truly global and simplify the institutional investment service offering to institutional investors. process across asset classes, from Our clients are typically large entities portfolio management and risk analytics and firms with a need to access multiple through trading and post-trade global markets each day. These clients settlement, with integrated compliance may also have investment decision- and managed data throughout. With makers in multiple jurisdictions. the acquisition of CRD, we took the We have established a global footprint first step in building our front-to- and integrated service delivery model back platform, State Street AlphaSM to meet the global needs of our clients. (State Street Alpha). Today, our Our clients generally transact in mature State Street Alpha platform combines financial markets with liquid currencies portfolio management, trading and with smaller coverage in markets that execution, advanced data aggregation, are less mature and emerging. analytics and compliance tools, and integration with other industry Outside of the US and Canada, we platforms and providers. Our front- provide depot bank services (a fund to-back office platform combines our oversight role created by regulation) core back and middle office services for retail and institutional fund assets, with front office solutions across all as well as custody and other services asset classes for portfolio management, to pension plans and other institutional trading and compliance. Products and clients in Germany, Italy, Luxembourg, services offered through this platform and France. In the United Kingdom, include: portfolio modeling and we provide custody services for pension construction, trade order management, fund assets and administration services investment risk and compliance and for mutual fund assets. We also provide wealth management solutions. custody, accounting and administration services as well as FX and securities We provide some or all of the lending services to clients across the Investment Servicing integrated Asia-Pacific region (APAC), including products and services to clients in Australia, Hong Kong, South Korea the US and Canada, and in many other and Japan.

47 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 10 illustrates our global footprint spanning over 39,000 employees, as of December 31, 2020, supporting the provision of services to clients.

Exhibit 10: Our Global Presence8

39,000+ Employees Worldwide**

AUSTRALIA CHANNEL IRELAND PEOPLE’S THAILAND Melbourne ISLANDS Drogheda REPUBLIC Bangkok Sydney Saint Peter Dublin OF CHINA Port, Guernsey Kilkenny Beijing UNITED ARAB AUSTRIA Saint Helier, Naas Hangzhou EMIRATES Vienna Jersey Hong Kong Abu Dhabi ITALY Shanghai Dubai BELGIUM FRANCE Milan UNITED Brussels Paris Turin POLAND KINGDOM Gdansk Edinburgh BRAZIL GERMANY JAPAN Krakow London Sao Paulo Frankfurt Fukuoka Leipzig Tokyo SAUDI ARABIA UNITED BRUNEI Munich Riyadh STATES DARUSSALAM LUXEMBOURG Arizona Bandar Seri INDIA Luxembourg SINGAPORE California Begawan Bangalore Singapore Connecticut Chennai MALAYSIA Florida CANADA Coimbatore Kuala Lumpur SOUTH KOREA Georgia Montreal Hyderabad Seoul Illinois Toronto Mumbai NETHERLANDS Indiana Vancouver Pune Amsterdam SWITZERLAND Massachusetts Thane West Zurich Missouri CAYMAN Vijayawada NORWAY New Jersey ISLANDS Trondheim TAIWAN New York Grand Cayman Taipei City Pennsylvania Texas

*December 31, 2020 **Employees as of December 31, 2020

8 This exhibit includes the primary locations for offices, branches and entity locations.

48 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION The following table presents financial information with respect to assets held under custody and administration (AUC/A) by our global custody business across major geographic regions.

Exhibit 11: AUC/A by Geographic Region

As of December 31 2020 2019 2018 (in USD billions)

North America 28,245 25,018 23,203

Europe/ Middle East/ Africa 8,101 7,325 6,699

Asia/ Pacific 2,445 2,015 1,718

Total 38,791 34,358 31,620

Source: State Street’s Form 10-K released February 19, 2021

3.1.2 Investment Management ETF brand. While management fees Our Investment Management line of are primarily determined by the values business, through State Street Global of AUM and the investment strategies Advisors (SSGA), provides a broad range employed, management fees reflect of investment management strategies other factors as well, including the and products for our clients. benchmarks specified in the respective Our investment management strategies management agreements related and products span the risk/reward to performance fees. spectrum for equity, fixed income Internationally, our investment and cash assets, including core management business operates and enhanced indexing, multi-asset through a global network of offices, strategies, active quantitative and sales centers, investment centers fundamental active capabilities and (which include both sales and alternative investment strategies. investment professionals) and trading Our AUM is currently primarily weighted desks. The investment centers are to indexed strategies. In addition, supported by trading desks located we provide a breadth of services and in Boston, London, and Hong Kong. solutions, including environmental, Our investment management’s social and governance investing, defined principal geographic locations are benefit and defined contribution and the US, the United Kingdom (UK) and Global Fiduciary Solutions (formerly Ireland, with other branches in the Outsourced Chief Investment Officer). Europe, Middle East and Africa (EMEA) State Street Global Advisors is also and Asia Pacific (APAC) regions. a provider of ETFs, including the SPDR®

49 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION The following table presents financial information with respect to assets under management (AUM) by our investment management business across major geographic regions.

Exhibit 12: AUM by Geographic Region

As of December 31 2020 2019 2018 (in USD billions)

North America 2,414 2,115 1,731

Europe/ Middle East/ Africa 509 493 421

Asia/ Pacific 544 508 359

Total 3,467 3,116 2,511

Source: State Street’s Form 10-K released February 19, 2021

3.2 Material Entities

3.2.1 Overview 3. Engaging with one or more FMUs as A material entity is defined in the 165(d) a member, participant or counterparty rule (12 C.F.R. Part 243 and 12 C.F.R. (“membership holder” or “MH”) Part 381) as “a subsidiary or foreign office of the Covered Company that is 4. Providing staff, facilities, systems significant to the activities of a Critical and critical services (“service Operation or Core Business Line.” infrastructure” or “SI”)

In line with regulatory definitions To assess the client facing nature of our and guidance, our material entity entities, State Street reviews whether determination criteria consider four or not the entity is a client contracting ways in which a legal entity may entity. Other factors, such as local conduct activities that are significant market share (where available) and the to our critical operations and core extent and nature of relationships with business lines: one or more of our global franchise clients may also be considered when 1. Contracting with and managing assessing the materiality of a client key global client relationships facing entity. in the local marketplace (“client facing” or “CF”)

2. Serving as a funding source through deposit-taking activities or financial support agreements (“liquidity provider” or “LP”)

50 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION A core metric we use to measure the and consider all assessment materiality of a liquidity provider is the criteria, including operational volume of deposits, particularly client interconnections, critical services deposits. Other factors, including the and capital and liquidity. funding role a legal entity is expected to play in the context of a resolution Our list of material entities remains scenario, are also considered when substantially unchanged. We identified determining the materiality of 23 material entities for our 2021 a liquidity provider. Targeted Plan, unchanged from the number of material entities that were The key criterion used to assess the identified in our 2019 Plan submission. materiality of a membership holder is Our material entity list includes one whether the legal entity is a member, new material entity, SSBI GmbH-Lux, participant or counterparty to an FMU which replaces State Street Bank that is significant to one or more critical Luxembourg S.C.A. (SSBL), following operations. Other factors include the the merger of SSBL into SSBI GmbH role that the legal entity plays in in November 2019. supporting or facilitating interactions with one or more critical FMUs (e.g., The designated material entities serving as control branch for an FMU). are below (the new material entity is identified in italics): A variety of factors are considered • State Street Corporation when assessing the materiality of service infrastructure entities, • State Street Bank and Trust Company including the number and percentage of critical services provided by the • State Street Bank and Trust Company, entity and the headcount, facilities, Hong Kong Branch (SSBT-Hong Kong) systems, and intellectual property that • State Street Bank and Trust Company, the entity provides in support of critical London Branch (SSBT-London) operations or other material entities. • State Street Bank and Trust Company, The material entity designation Toronto Branch (SSBT-Toronto) process outlined above has been in BAU since 2017, and enables an active • State Street Global Advisors Trust and comprehensive review of our Company (SSGA Trust Co.) entities (existing and new entities and • State Street International Holdings new or changed business processes). (SSIH) The periodic review process allows us to continually fine-tune the process

51 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION • State Street Trust Company Canada • State Street International (Ireland) (SSTCC) Limited (SSIIL)

• State Street Technology (Zhejiang) • State Street Custodial Services Company, Limited (SSTZ) (Ireland) Limited (SSCSIL)

• Statestreet HCL Services (India) • State Street Fund Services (Ireland) Private Limited (SS HCL) Limited (SSFSIL)

• State Street Syntel Services Private • State Street Intermediate Funding Limited (SS Syntel) LLC (SSIF)

• State Street Corporate Services • SSB Realty, LLC (SSB Realty) Mumbai Private Limited (SSCSM)9 • State Street Global Advisors Limited • State Street Bank International (SSGA Ltd.) GmbH (SSBI GmbH) • SSGA Funds Management, Inc. • State Street Bank International (SSGA FM) GmbH, Luxembourg Branch • StateStreet Global Advisors India (aka State Street Bank International Private Limited (SSGAIPL) GmbH, Zweigniederlassung Luxemburg) (SSBI GmbH-Lux)10

• State Street Bank International GmbH, Poland Branch (aka State Street Bank GmbH sp. z.o.o. Oddzial w Polsce) (SSBI GmbH-Krakow)

9 State Street Services India, LLP, a material entity for the 2019 Plan (underneath the bank chain), was created as a placeholder to account for the planned transfer of State Street Corporate Services Mumbai Private Limited (SSCSM), an indirect subsidiary of SSC and outside the SSBT chain. In Q2 2021 a decision was made on the form and type of transfer of the service company underneath the bank chain. State Street is expecting to transfer the shares of SSCSM to SSIH and another subsidiary of SSIH, State Street London Holdings Ltd. SSCSM will continue to serve as a service hub and remain a material entity following the transfer. 10 State Street Bank Luxembourg S.C.A. (SSBL) was merged with and into State Street Bank International GmbH, and all of SSBL’s assets and liabilities, including contracts and employment relations, were allocated to State Street Bank International GmbH’s existing branch in Luxembourg, in Q4 of 2019.

52 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION A simplified organizational chart illustrating the relationship among our material entities is presented in Exhibit 13.

Exhibit 13: Simplified State Street Organization Chart Illustrating Material Entity Relationships

State Street Corporation (SSC)

State Street Intermediate SSB Realty, LLC Funding LLC (SSB Realty) (SSIF)

Excludes non-Material Entity companies for simplicity. State Street StateStreet State Street SSGA Funds Global Advisors Global Advisors Global Advisors Only SSBT,SSB Reality, SSIF, SSGA Ltd., Management, Inc. Limited India Private Trust Company (SSGA FM) and SSGA FM are Direct subsidiaries (SSGA Ltd) Limited (SSGA (SSGAIPL) Trust Co.) of State Street Corporation in this picture. Investment Management Material Entities

Global Custody Material Entities State Street Bank and Trust Company (SSBT) State Street Bank and Trust State Street State Street Company Bank and Trust Bank and Trust Hong Kong, Company London Company Toronto Branch (SSBT- Branch (SSBT- Branch (SSBT- London) Toronto) Hong Kong) State Street International Holdings (SSIH)

State Street State Street Corporate State Street State Street State Street International Services Mumbai International Trust Company Technology GmbH (SSBI Private Limited (Ireland) Limited Canada (Zhejiang) Co., GmbH) (SSCSM) (SSIIL) (SSTCC) Ltd. (SSTZ)

SSBI GmbH, SSBI GmbH, State Street State Street Statestreet HCL State Street Poland Branch Luxembourg Custodial Services Fund Services Services (India) Syntel Services (SSBI GmbH- Branch (Ireland) Limited (Ireland) Limited Private Limited Private Limited Krakow) (SSBI GmbH- (SSCSIL) (SSFSIL) (SS HCL)* (SS Syntel)* Lux)

*51% owned by State Street via non-US Joint-venture holding company. SSBT Branches and Subsidiaries New in 2021 Plan

3.2.2 Interconnectedness jurisdictions. For a global custodian of Material Entities like us, certain scalable activities are Our core business lines are composed centralized while specific customer, of a variety of integrated functions, regulatory, or market demands are the various components of which are likely to be delivered in the local often performed by personnel within marketplace. separate legal entities in different

53 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION A mapping of each material entity to description of each material entity, the core business lines it supports is is provided in the next sections 3.2.3 summarized in the chart shown below. Our Top-Tier Holding Company and Additional detail, including a qualitative 3.2.4 Our Other Material Entities.

Exhibit 14: Mapping of Material Entities to Core Business Lines

Material Entity Global Custody Investment Core Business Management Core Line Business Line

State Street Corporation LP -

State Street Bank and Trust Company CF, LP, MH, SI SI

State Street Bank and Trust Company, Hong Kong Branch LP, MH, SI -

State Street Bank and Trust Company, London Branch CF, LP, MH, SI -

State Street Bank and Trust Company, Toronto Branch CF, LP, MH, SI -

State Street Global Advisors Trust Company - CF, SI

State Street International Holdings LP -

State Street Trust Company Canada CF, MH, SI -

State Street Technology (Zhejiang) Company, Limited SI -

Statestreet HCL Services (India) Private Limited SI -

State Street Syntel Services Private Limited SI -

State Street Corporate Services Mumbai Private Limited SI SI

State Street Bank International GmbH CF, LP, MH, SI -

State Street Bank International GmbH, Luxembourg Branch CF, LP, MH, SI -

State Street Bank International GmbH, Poland Branch SI -

State Street International (Ireland) Limited SI -

State Street Custodial Services (Ireland) Limited CF -

State Street Fund Services (Ireland) Limited CF -

State Street Intermediate Funding LLC LP LP

SSB Realty, LLC SI SI

State Street Global Advisors Limited - CF, SI

SSGA Funds Management, Inc. - CF

StateStreet Global Advisors India Private Limited - SI

54 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.3 Our Top-Tier Holding Company In our resolution strategy, SSC would contribute almost all of its remaining 3.2.3.1 State Street Corporation assets (excluding equity interests in SSC is a Massachusetts-chartered its subsidiaries) to our funding entity, bank holding company that has elected SSIF, which would provide support to financial holding company status under keep our other material entities the Bank Holding Company Act of 1956. sufficiently capitalized and solvent, and SSC is the top-tier holding company of to preserve the continuity of our critical all our entities. SSC is a public company operations. As a result of this support, with stock that is listed on the New York SSBT and our other material entities Stock Exchange (NYSE: STT) and is would continue their operations outside subject to supervision and regulation of any bankruptcy proceeding. by, among others, its primary federal banking regulator, the Federal Reserve. After making its final contribution to our funding entity, SSIF, SSC would file As the ultimate parent company of for bankruptcy. The SSC bankruptcy all our legal entities, SSC’s purpose estate would receive any distributions is to provide financial and managerial made by the trust, which would be support to its subsidiaries. SSC funds distributed to creditors and other its subsidiaries through contributions stakeholders through a bankruptcy of capital as well as short- and long- plan. All material entities would be term subordinated and senior loans transferred to the new holding and other advances. As a result, company and, other than SSC, non- SSC is not a material provider of material entities would be wound down. critical services.

SSC is designated as a material 3.2.4 Our Other Material Entities entity due to its status as the “covered Certain of our legal entities and company” for resolution planning branches have been designated as purposes and its status as a liquidity material based on the significance provider to our critical operations. of the activities they conduct with respect to our core business lines and associated critical operations.

55 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Global Custody Material Entities These service companies do not Material entities that support global contract with clients, do not hold custody may: banking licenses or memberships with FMUs and do not take deposits. • Contract with clients in the local They have been designated as material marketplace to meet particular entities due to the SI, including critical client needs or satisfy local services, that they provide in support requirements (CF) of critical operations or other • Receive deposits from clients in material entities. order to facilitate settlements or meet client cash management Investment Management requirements (LP) Material Entities Investment management material • Directly interface with financial entities, including SSGA Trust Co., market infrastructure, such as are significant to the investment central securities depositories, management core business line payments systems, Foreign primarily because they are authorized Exchange (FX) settlement systems, to act as the legal investment managers, sub-custodians and correspondent fiduciaries or advisors to certain banks (MH) investment vehicles utilized to provide • Provide critical services or other investment management to our clients. service infrastructure supporting A key metric by which to measure the one or more critical operations or materiality of investment management other material entities (SI) entities is AUM. Like global custody, investment management material Often, global custody CF, LP and entities rely on service company MH material entities rely on service affiliates, such as SSGAIPL. SSGAIPL company affiliates, such as SSBI has been designated as a material GmbH-Krakow, SSTZ, SSCSM, SS entity due to the SI, including critical Syntel and SS HCL, to provide the services, that it provides in support critical services and other SI required of critical operations or SSGA to support PCS and other activities. material entities.

56 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.1 State Street Bank and and Japan. We have separately Trust Company designated SSBT’s branches in Canada SSBT, a Massachusetts-chartered trust (SSBT-Toronto), Hong Kong (SSBT-Hong company, traces its beginnings to the Kong) and the UK (SSBT-London) as founding of the Union Bank in 1792. material entities. SSBT’s current charter was authorized by a special Act of the Massachusetts SSBT operates as a specialized custody Legislature in 1891, and its present bank that services and manages assets name was adopted in 1960. As a state- on behalf of its institutional clients. As of chartered banking institution that is a December 31, 2020, SSBT had revenue member of the Federal Reserve, SSBT’s of $11.06 billion, which represented primary federal banking regulator for 95% of our total revenue of $11.70 billion. its US and non-US operations is the SSBT serves as our central location for Federal Reserve. SSBT is also a FDIC- PCS activities. SSBT’s subsidiaries insured depository institution. SSBT is access these activities through sub- subject to applicable federal and state custody contracts and other agreements. banking laws and to supervision and SSBT also serves as the central liquidity regulation by the Federal Reserve, hub whereby settlement obligations the Massachusetts Division of Banks, are met through SSBT and global the FDIC, and the regulatory authorities investment activities are administered of those states and countries in which by its Global Treasury group. SSBT is a SSBT branch is located. also a significant provider of critical services that support global custody As of December 31, 2020, SSBT had and associated critical operations. three domestic branches, 9 foreign SSBT therefore meets all four of our branches and 11 representative offices. materiality criteria for material entity SSBT also operates internationally designation in that it provides significant through foreign subsidiaries in support to the activities of our critical accordance with the Federal Reserve’s operations and core business lines Regulation K. SSBT’s foreign branches as a client facing entity, a liquidity are located in Australia, Canada, China, provider, a membership holder, and Hong Kong, Japan, Korea, Singapore, a service infrastructure provider. Taiwan, and the United Kingdom, and its wholly-owned banking subsidiaries headquartered in Canada, Germany,

57 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.2 State Street Bank and 3.2.4.3 State Street Bank and Trust Company, Hong Kong Branch Trust Company, London Branch SSBT-Hong Kong is authorized and SSBT-London is authorized and regulated in Hong Kong by the Hong regulated in the UK by the Financial Kong Monetary Authority (HKMA). Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). SSBT-Hong Kong serves as an APAC regional Treasury hub and is SSBT-London supports our custody responsible for managing regional and securities lending businesses deposit liquidity. SSBT-Hong Kong also and also acts as a regional cash plays an essential role in facilitating processing platform for SSBT, its our PCS activities across APAC through branches and subsidiaries. SSBT- its role as a local currency manager. London performs direct clearing In this capacity, SSBT-Hong Kong is and settlement for the UK and Irish responsible for providing adequate markets through its participation in local currency funding to support all Euroclear UK and Ireland and the of our client transactions in a number Clearing House Automated Payment of APAC markets. SSBT-Hong Kong is System. In addition, SSBT-London also licensed under the Hong Kong serves as our European liquidity hub, Banking Ordinance and clears Hong whereby key funding and investment Kong Dollars directly through the activities are locally coordinated by Clearing House Automated Transfer SSBT-London and then administered System (CHATS). by SSBT. It is also a key provider of critical services to global custody SSBT-Hong Kong provides critical and associated critical operations. services related to payment processing SSBT-London therefore meets all and liquidity management support. four of the criteria for material entity designation in that it provides SSBT-Hong Kong therefore meets significant support to the activities three of the four criteria for material of global custody and associated entity designation described above, critical operations as a client in that it provides significant support facing entity, a liquidity provider, to a number of critical operations a membership holder, and a service supporting global custody as a liquidity infrastructure provider. provider, a membership holder, and a service infrastructure provider.

58 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.4 State Street Bank and Trust As a banking entity, SSBT-Toronto Company, Toronto Branch accepts deposits from clients and SSBT-Toronto is an Authorized Foreign facilitates self-clearing of Canadian Bank in Canada pursuant to Canada’s payment activities through its support Bank Act. SSBT-Toronto operates from of SSBT’s participation in the Canadian locations in Toronto, Montreal and Payment Association’s Large Value Vancouver and is regulated in Canada Transfer System (LVTS). SSBT-Toronto by the Office of the Superintendent of also provides critical services to global Financial Institutions (OSFI). custody and associated critical operations. Two Canadian entities are designated as material for purposes of the SSBT-Toronto therefore meets all resolution plan: SSBT-Toronto and four of the materiality criteria for SSTCC. The combined roles of these material entity designation described two entities provide us with the above, in that it provides significant necessary capabilities to offer global support to critical operations custody services in Canada. The supporting global custody as a client division of functional and operational facing entity, a liquidity provider, responsibilities between SSBT-Toronto a membership holder, and a service and SSTCC is due to various infrastructure provider. requirements and restrictions under Canadian law with respect to the types 3.2.4.5 State Street Global Advisors of global custody activities that may Trust Company be conducted by a banking entity SSGA Trust Co. is a Massachusetts- (i.e., SSBT-Toronto) and a trust company chartered, non-depositary, limited (i.e., SSTCC). Regulations from other purpose trust company. It is a wholly- jurisdictions, such as the US, may also owned subsidiary of SSBT and an affect the division of functional and indirect subsidiary of SSC. SSGA Trust operational responsibilities between Co.’s primary regulator is the SSBT-Toronto and SSTCC. Massachusetts Division of Banks. As an indirect subsidiary of SSC, SSGA Trust SSBT-Toronto does not contract with Co. is also subject to supervision by the our clients to provide custody-related Federal Reserve. services; such contracts are with SSTCC in the Canadian market. SSGA Trust Co. was established in Together, SSBT-Toronto and SSTCC December 2016 as an investment represent client facing locations where management-dedicated legal entity to significant clients are serviced. house the investment management

59 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION activities that were previously ownership chain, while others may be conducted by the SSGA division of in need of additional capital or liquidity. SSBT. SSGA Trust Co. is the trustee SSIH maintains cash on hand that can for SSGA’s US unregistered collective be used to provide financial support and common trust funds as well as to its direct and indirect subsidiaries, two SSGA sponsored ETFs. Client as required. SSIH is therefore contracts for SSGA’s separately a potential provider of liquidity and managed accounts are held with the capital to SSIH’s direct and indirect SSGA Trust Co. The entity is the owner material entity subsidiaries. We of SSGA-dedicated infrastructure designated SSIH as a material entity applications and systems. due to the funding role that SSIH could play as a liquidity provider to its direct SSGA Trust Co. therefore meets two and indirect material entity subsidiaries of the four criteria for material entity in the context of a resolution scenario. designation; it provides significant support to investment management 3.2.4.7 State Street Trust and its associated critical operations Company Canada with its service infrastructure and SSTCC is a Canadian trust company acts as a client facing entity. regulated by the Office of the Superintendent of Financial Institutions 3.2.4.6 State Street (OSFI). SSTCC was established as International Holdings a separate legal entity to satisfy legal SSIH is our Edge corporation organized requirements under Canadian law to and existing under the provisions of permit us to provide custody services Section 25A of the Federal Reserve to Canadian public mutual funds and Act. It is a direct subsidiary of SSBT to provide trustee services to our and an indirect subsidiary of SSC. Canadian clients. SSIH has numerous direct and indirect subsidiaries in APAC, EMEA and North SSTCC provides custody services to America, including 9 material entities our Canadian clients and with respect that support global custody and to Canadian securities. In addition, associated critical operations. SSTCC provides self-custody services As a holding company, SSIH does for Canadian securities through its not conduct business operations. membership in Canadian Depository for Securities. SSTCC also provides At any given time, SSIH’s various a number of critical services that subsidiaries may have excess earnings support global custody and associated that can be distributed back up the critical operations.

60 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION SSTCC therefore meets three of the four 3.2.4.9 Statestreet HCL Services (India) criteria for material entity designation Private Limited described above, in that it provides SS HCL, a limited company incorporated significant support to critical operations under the Companies Act, 1956 of India, supporting global custody as a client provides services exclusively to State facing entity, a membership holder, Street and its affiliates. SS HCL is held and a service infrastructure provider. through a joint venture between SSIH and a wholly-owned subsidiary of HCL Technologies Limited, an Indian public 3.2.4.8 State Street Technology company headquartered in New Delhi, (Zhejiang) Co., Ltd India, and is an unconsolidated SSTZ is incorporated in China under subsidiary of SSC. the China Corporation Law. SSTZ is a direct, wholly-owned subsidiary of SS HCL supports our global operating SSIH and an indirect subsidiary of model by providing critical services to SSBT and SSC. Global Custody and associated critical operations. As a result of this service SSTZ provides IT development services infrastructure support, we have to our legal entities and business areas, designated SS HCL as a material entity. as well as operational support to global custody’s associated critical operations. SSTZ does not hold any banking, 3.2.4.10 State Street Syntel Services brokerage or other licenses related Private Limited to the provision of financial services, SS Syntel, a limited company and does not directly contract with our incorporated under the Companies clients. SSTZ is, however, a significant Act, 1956 of India, provides services provider of service infrastructure in exclusively to other SSC entities. support of global custody, through the SS Syntel is held through a joint venture provision of critical services conducted between SSIH and a subsidiary of Atos by staff based in China. As a result Syntel, Inc., a company headquartered of this service infrastructure support, in Bezons, France, and is an we have designated SSTZ as unconsolidated subsidiary of SSC. a material entity. SS Syntel supports our global operating model by providing critical services to global custody and associated critical operations. As a result of this service infrastructure support, we have designated SS Syntel as a material entity.

61 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.11 State Street Corporate and the German Central Bank (Deutsche Services Mumbai Private Limited Bundesbank). SSBI GmbH is a member State Street Corporate Services of the Deposit Protection Fund of Mumbai Private Limited (SSCSM) was the Association of German Banks incorporated in India in 2010 under (Einlagensicherungsfonds des the India Companies Act (1956) as an Bundesverband deutscher Banken). indirect subsidiary of SSC. State Street is in the process of transferring shares SSBI GmbH is an indirect subsidiary of SSCSM to SSIH and another of SSBT and ultimately SSC. It has one subsidiary of SSIH, State Street London domestic branch, located in Frankfurt, Holdings Ltd, subject to receipt of any Germany; six additional European necessary regulatory approval. SSCSM Union branches located in Amsterdam, is expected to continue to serve as a the Netherlands; Krakow, Poland; service hub and remain a material Luxembourg, Luxembourg; Milan, entity following the transfer. Italy; Paris, France; and Vienna, Austria and two additional non-European Union SSCSM is not a regulated entity and branches located in London, UK and does not engage with clients. SSCSM Zurich, Switzerland. SSBI GmbH- Lux is a service entity that provides staff, and SSBI GmbH-Krakow, two branches facilities, systems, and services of SSBI GmbH, are also designated considered significant to the global as material entities. custody core business line and its critical operations; the entity also SSBI GmbH provides global custody provides significant levels of corporate services and investment manager control and support services. SSCSM back and middle office in-sourcing was designated as a material entity services. It is a local depository unit in the fall of 2017 as it met, and and a contractual counterparty for continues to meet, the definition of our global clients’ funds located in a service infrastructure provider. the European Economic Area and Switzerland. In addition, SSBI GmbH is the day-to-day point of contact for 3.2.4.12 State Street Bank clients, sales, relationship management International GmbH and client service support, as well as SSBI GmbH is headquartered in custody-related operational functions Munich, Germany and is a credit that are required to be performed locally institution under German law. due to local regulatory requirements SSBI GmbH is supervised by or client/market practices, such as the ECB (European Central Bank), fund accounting and fund administration the BaFin (Bundesanstalt für services. SSBI GmbH also holds client Finanzdienstleistungaufsicht/Federal cash deposits. Financial Supervisory Authority)

62 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Through its direct participation S.C.A. (SSBL), which merged with and in Clearstream Banking Frankfurt, into SSBI GmbH in November 2019. a German central securities depository, Prior to the merger, SSBL was the key SSBI GmbH provides services to SSBT contracting entity for Luxembourg and its affiliates in support of our core domiciled funds of our global client base, PCS functions. It also provides critical providing a range of core custody, fund services in support of global custody administration, transfer agency and and its associated critical operations. depositary banking services. As part of the merger, SSBL’s contracts, As a result of these activities, SSBI regulatory licenses, and memberships GmbH meets all four of the criteria were transferred to SSBI GmbH, with for material entity designation, in the majority of SSBL’s staff and services that it provides significant support moving to its Luxembourg Branch. SSBI to a number of critical operations GmbH-Lux contracted clients maintain supporting global custody as a client their cash accounts with this entity. facing entity, a liquidity provider, SSBI GmbH-Lux also holds memberships a membership holder, and a service with Clearstream Banking S.A., infrastructure provider. Luxembourg, and Euroclear Bank (EB) and acts as a provider of critical 3.2.4.13 State Street Bank International services supporting global custody and GmbH Luxembourg Branch associated critical operations. SSBI GmbH-Lux is a branch of SSBI GmbH, a credit institution established Following the merger, SSBI GmbH- under German law. SSBI GmbH is an Lux meets four of the criteria for indirect subsidiary of SSBT and material entity designation in that ultimately SSC. SSBI GmbH-Lux is it provides significant support to subject to primary supervision by the a number of critical operations ECB and BaFin and the Deutsche supporting global custody as a client Bundesbank. SSBI GmbH-Lux is also facing entity and is a liquidity provider, supervised by the Commission de a membership holder, and a service Surveillance du Secteur Financier infrastructure provider. (CSSF) for activities that remain in scope of the CSSF remit, such as 3.2.4.14 State Street Bank anti-money laundering activities under International GmbH Poland Branch the Markets in Financial Instruments SSBI GmbH-Krakow is a branch Directive (MiFID), depositary and fund of SSBI GmbH, a credit institution administration activities. SSBI GmbH- established under German law. Lux is a new material entity for SSBI GmbH is an indirect subsidiary the 2021 Targeted Plan, replacing of SSBT and ultimately SSC. SSBI State Street Bank Luxembourg GmbH-Krakow does not engage in

63 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION any banking activities and is registered same entity from providing both in Poland as a “non-banking branch.” (a) custody, depositary and trustee As such, it does not hold any banking, services and (b) fund accounting brokerage or other licenses related and administration services. to the provision of financial services and does not provide such services SSIIL is not a regulated entity and holds directly to clients. SSBI GmbH-Krakow no banking licenses in Ireland. SSIIL is is, however, a significant provider an indirect subsidiary of SSBT and of service infrastructure in support ultimately SSC. Because SSIIL provides of the global custody core business significant service infrastructure that line through the provision of critical supports our critical operations, SSIIL services conducted by staff based is considered a material entity. in Poland. 3.2.4.16 State Street Custodial Services As a result of the critical services (Ireland) Limited provided by SSBI GmbH-Krakow in SSCSIL is regulated by the Central support of our critical operations, Bank of Ireland under the Investment we have designated SSBI GmbH- Intermediaries Act, 1995. SSCSIL is Krakow as a material entity. authorized to provide custody and depositary/trustee services to 3.2.4.15 State Street International collective investment schemes. (Ireland) Limited SSCSIL is a direct wholly-owned SSIIL is incorporated in Ireland subsidiary of SSIIL. under the Companies Act 2014. SSIIL was established primarily as SSCSIL contracts with clients for the a management company to provide provision of services supporting the personnel and operational capabilities global custody core business line and to its two subsidiaries, SSCSIL and associated critical operations. SSCSIL SSFSIL. SSCSIL and SSFSIL (each does not hold a banking license and a subsidiary) have been designated therefore does not accept client deposits. as material entities as they are SSCSIL uses employee resources significant providers of custody and supplied by its parent, SSIIL, to deliver custody related services to clients. critical services. SSCSIL meets the The corporate structure of SSCSIL client facing criteria to be considered and SSFSIL has been designed a material entity. to comply with local regulatory requirements, which prohibit the

64 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.17 State Street Fund Services We designated SSIF as a material (Ireland) Limited entity due to the key funding role that SSFSIL, like SSCSIL, is regulated by SSIF is expected to play as a liquidity the Central Bank of Ireland under the provider to our other material entities Investment Intermediaries Act, 1995. in the context of a resolution. SSFSIL is authorized to provide fund administration and transfer agency 3.2.4.19 SSB Realty, LLC services to collective investment SSB Realty is a Delaware limited schemes. SSFSIL is a direct wholly- liability company and a direct, wholly- owned subsidiary of SSIIL. owned subsidiary of SSC. SSB Realty was formed for the purpose of SSFSIL contracts with clients for the engaging in buying, selling, acquiring, provision of services supporting our improving, leasing, managing and global custody core business line and otherwise dealing with real estate. associated critical operations. SSFSIL uses employee resources supplied by SSB Realty is a significant owner its parent, SSIIL, to deliver critical and tenant of facilities we use in the services. SSFSIL meets the client US, including facilities used by two facing criteria to be considered of our material entities. It is also a material entity. our contracting entity for associated design, engineering, and construction 3.2.4.18 State Street Intermediate contracts for the improvement and Funding LLC maintenance of these facilities, as well SSIF is a Delaware limited liability as for our global facilities management company and wholly-owned subsidiary contract. SSB Realty is therefore a key of SSC that was formed in January 2017 provider of service infrastructure (i.e., to hold and maintain certain pre- facilities), that supports global custody positioned resources that would be and investment management and available for use to provide capital their associated critical operations. and/or liquidity support to material As a result, we have designated SSB entities as contemplated by the Single Realty as a material entity. Point of Entry resolution strategy.

65 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.2.4.20 State Street Global SSGA Ltd. therefore meets two of Advisors Limited the materiality criteria for material SSGA Ltd. is a UK limited liability entity designation, in that it provides company that is registered as an significant support to investment investment advisor in both the US and management and its associated critical UK. In the US, SSGA Ltd. is registered operations as a client facing entity with the SEC under the Advisers Act. and a service infrastructure provider. In the UK, SSGA Ltd. is authorized and regulated by the UK FCA under the 3.2.4.21 SSGA Funds Management, Inc. Financial Services and Markets Act SSGA FM, a Massachusetts corporation, 2000. As a Limited License Firm, SSGA is a direct wholly-owned subsidiary of Ltd. does not hold client assets or client SSC. SSGA FM is registered with the money, does not engage in proprietary Securities and Exchange Commission trading and has a client base that is (SEC) as an investment advisor under wholly institutional or intermediary. the Investment Advisers Act of 1940. SSGA Ltd. is an indirect wholly-owned To perform the full suite of services subsidiary of SSC. as an investment advisor, SSGA FM is also registered as a commodity In the UK, SSGA Ltd. manages trading advisor and commodity pool investments directly or indirectly operator with the National Futures through service agreements with Association and the Commodity Futures other SSGA legal entities for clients Trading Commission (CFTC). SSGA FM, domiciled in over 35 countries. SSGA through its commodity trading advisor Ltd.’s client base includes defined registration, is able to provide benefit and defined contribution individualized advice regarding the pension funds, insurance companies, buying and selling of futures contracts central banks, official institutions, or options on futures, swaps, or certain foundations, charities, family offices foreign exchange contracts. and intermediaries. SSGA Ltd. is the management center for an important SSGA FM serves as the investment part of SSGA’s activities across Europe advisor for SSGA’s suite of registered and the Middle East and houses the mutual funds, ETFs and other European trading desk for SSGA offices investment vehicles and directly around the globe. SSGA Ltd. staff supports investment management’s provides critical services supporting critical operations. SSGA FM is a investment management’s significant contracting entity for SSGA. critical operations.

66 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION SSGA FM therefore meets the client SSGAIPL is an indirect subsidiary facing criteria and is considered of SSC and was designated as a material entity for this reason. SSGA a material entity due to its provision FM is reliant upon staff employed by of staff, facilities, systems, and critical other material entities to provide the services supporting the investment critical services needed to support management core business line and our critical operations. its ETF and MMF critical operations. SSGAIPL meets the definition of a service infrastructure provider. 3.2.4.22 StateStreet Global Advisors India Private Limited (SSGAIPL) StateStreet Global Advisors India Private Limited (SSGAIPL) was 3.3 Financial Information established in 2007 as a private 3.3.1 Summary of Consolidated limited company under the India Financial Information Companies Act, 1956. SSGAIPL was The following tables present formed to provide middle and back consolidated financial information office support services and corporate for State Street. This information is support services to State Street provided in State Street’s Form 10-K affiliates. As the result of the clear for the year ended December 31, 2020 delineation between State Street’s two (on file with the SEC), including related core business lines, non-corporate footnotes and the related management critical services mapped to the global discussion and analysis of financial custody core business line were condition and results of operations. migrated from SSGAIPL to SSCSM in See also our reports subsequently 2017. After the migration, the RRP filed with or furnished to the SEC for Office continued to monitor the additional information. criticality of SSGAIPL to the investment management core business line and its respective critical operations.

67 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 15: Consolidated Statement of Income

Years ended December 31, 2020 2019 (Dollars in millions, except per-share amounts) Fee revenue Servicing fees 5,167 5,074 Management fees 1,880 1,824 Trading services 1,363 1,058 Securities finance 356 471 Software and processing fees 733 720 Total fee revenue 9,499 9,147 Net interest revenue Interest revenue 2,575 3,941 Interest expense 375 1,375 Net interest revenue 2,200 2,566 Other Income Gains (losses) related to investment securities, net: 4 (1) Other Income — 44 Total other income 4 43 Total revenue 11,703 11,756 Provision for loan losses 88 10 Expenses Compensation and employee benefits 4,450 4,541 Information systems and communications 1,550 1,465 Transaction processing services 978 983 Occupancy 489 470 Acquisition and restructuring costs 50 77 Amortization of other intangible assets 234 236 Other 965 1,262 Total expenses 8,716 9,034 Income before income tax expense 2,899 2,712 Income tax expense (benefit) 479 470 Net income 2,420 2,242 Net income available to common shareholders 2,257 2,009 Earnings per common share Basic (actual) 6.4 5.43 Diluted (actual) 6.32 5.38 Average common shares outstanding Basic (#) 352,865 369,911 Diluted (#) 357,106 373,666 Cash Dividends declared per common share (actual) 2.08 1.98

68 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 16: Consolidated Statement of Condition

As of December 31, 2020 2019 (Dollars in millions, except per-share amounts) Assets Cash and due from banks 3,467 3,302 Interest-bearing deposits with banks 116,960 68,965 Securities purchased under resale agreements 3,106 1,487 Trading account assets 815 914 Investment securities available-for-sale 59,048 53,815 Investment securities held-to-maturity 52,228 41,782 Loans and leases (less allowance for losses) 27,803 26,235 Premises and equipment 2,154 2,282 Accrued interest and fees receivable 3,105 3,231 Goodwill 7,683 7,556 Other intangible assets 1,827 2,030 Other assets 36,510 34,011 Total assets 314,706 245,610 Liabilities Deposits Non-interest-bearing 49,439 34,031 Interest-bearing-US 102,331 77,504 Interest-bearing-non-US 88,028 70,337 Total deposits 239,798 181,872 Securities sold under repurchase agreements 3,413 1,102 Short term borrowings under money market liquidity facility 3,302 — Other short-term borrowings 685 839 Accrued expenses and other liabilities 27,503 24,857 Long-term debt 13,805 12,509 Total liabilities 288,506 221,179 Shareholders’ equity Preferred stock Series C — 491 Series D 742 742 Series F 742 742 Series G 493 493 Series H 494 494 Common stock 504 504 Surplus 10,205 10,132 Retained earnings 23,442 21,918

69 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 16: Consolidated Statement of Condition (Continued)

As of December 31, 2020 2019 (Dollars in millions, except per-share amounts) Accumulated other comprehensive income (loss) 187 (876) Treasury stock, at cost (10,609) (10,209) Total shareholders’ equity 26,200 24,431 Non-controlling interest-equity — — Total liabilities and shareholders’ equity 314,706 245,610

3.3.2 Capital market conditions, and idiosyncratic We incorporate capital adequacy events, as well as existing and future and risk appetite into our corporate regulatory expectations. Capital levels strategy and business decisions. incorporated into our Risk Appetite Our Board and senior management Statement position us to have sufficient have established a comprehensive capital to satisfy regulatory requirements strategy for our capital adequacy and maintain the appropriate level process. Our capital adequacy process given our risk profiles. Performance is a holistic and rigorous framework is measured, monitored, and reported for assessing overall capital adequacy regularly to the MRAC, Risk Committee, in relation to our risk profile and is an and Board. integral part of our business planning and performance measurement process. We maintain capital in excess of The capital adequacy process considers the required minimum regulatory all material risks and multiple scenarios, risk based and leverage-based capital with an emphasis on stress scenarios. levels in compliance with all applicable It is designed to assess and maintain regulatory requirements, and exceed an appropriate level of capital, given well-capitalized standards as defined by our risk profile and unique business federal banking agencies. We maintain model, and to determine the our capital at an appropriate level, appropriate level and form of capital not just at a point in time, but over distributions to shareholders. It also time to account for changes in our provides a comprehensive strategy strategic direction and evolving for maintaining appropriate capital economic conditions, including stressed levels in current and future periods, environments and periods of financial accounting for potential changes in and market volatility. As we are strategic direction, economic and a designated global systemically

70 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION important bank, our capital adequacy The following table presents process is also designed to meet regulatory capital ratios and well- regulatory expectations, which are capitalized requirements for both promulgated in Basel regulations SSC and SSBT. We are required to as implemented in the US, and report capital measures under both supervisory guidance from our the advanced and standardized capital regulators, including Supervision adequacy approaches; of the two, and Regulation Letter 15-18, Federal the standardized approach is more Reserve Guidance on Supervisory binding as of December 31, 2020. Assessment of Capital Planning All capital ratios are presented using and Positions for LISCC Firms and the Basel III final capital rule. Large Complex Firms,11 and the 2019 Guidance.

Exhibit 17: Basel III Regulatory Capital Ratios and Related Regulatory Guidelines for SSC and SSBT12

Regulatory SSC SSBT

Basel III Basel III Basel III Basel III Regulatory PCA Well Advanced Standardized Advanced Standardized Capital Ratios Capitalized Approaches Approach Approaches Approach Requirements13 December 31, December 31, December 31, December 2020 2020 2020 31, 2020

Common Equity 6.5% 13.1% 12.3% 16.5% 15.3% Tier 1 Capital Tier 1 Risk-Based 8.0% 15.4% 14.4% 16.5% 15.3% Capital Total Risk-Based 10.0% 16.2% 15.3% 17.4% 16.3% Capital Tier 1 Leverage 5.0% 6.4% 6.4% 6.6% 6.6% Ratio Supplementary 5.0%/6.0% 8.1% 8.1% 7.9% 7.9% Leverage Ratio

Source: State Street’s Form 10-K released February 19, 2021

11 Board of Governors of the Federal Reserve SR 15-18: https://www.federalreserve.gov/ supervisionreg/srletters/sr1508.pdf. 12 Does not include G-SIB surcharge or other capital buffers. 13 Applicable to SSBT. PCA Well Capitalized Requirements do not include a G-SIB surcharge or other capital buffers.

71 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.3.3 Funding and Liquidity the existence of sufficient funds Liquidity is a financial institution’s to replace our maturing liabilities, capacity to meet its cash and collateral accommodate our customers’ obligations without becoming insolvent transaction and cash management or incurring unacceptable losses. requirements, and meet our other Adequate liquidity means the institution funding commitments. In the case has the ability to efficiently meet both of an adverse market event, we its expected and unexpected cash flows are prepared to execute liquidity and collateral needs, without adversely contingency plans. affecting either its daily operations or its financial condition. Liquidity risk is In managing our liquidity, our primary the risk to an institution’s financial source of short-term funding is client condition or safety and soundness deposits (shown in Exhibit 18), which arising from its inability (whether real are predominantly transaction-based or perceived) to meet its contractual deposits from our global custody obligations. To manage our liquidity risk clients, who are typically institutional and protect against severe liquidity investors. Our clients place deposits events, we have risk management with our worldwide branches and standards in place that focus on our subsidiaries consistent with their unique risk characteristics. investment strategies, and such deposits help facilitate payment and Maintenance of adequate liquidity is settlement activities associated with of primary importance to us and is client investment portfolios. These something we take into account in the client deposits are the primary management of our balance sheet. Our source of liquidity and funding for management of liquidity provides for our consolidated balance sheet.

Exhibit 18: Total Deposits

Average Balance (Dollars in millions) December 31, 2020 Year Ended December 31, 2020 Client deposits 239,798 193,225

Source: State Street’s Form 10-K released February 19, 2021

72 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION On-balance sheet liquid assets are of asset liquidity to the US government an integral component of State Street’s and federal agency securities (including liquidity management strategy. mortgage-backed securities), select These assets provide liquidity through non-US government and supranational the maturity of such assets and by securities, as well as certain other high providing State Street with the ability quality securities which generally are to raise funds by pledging the securities more liquid than other types of assets as collateral for borrowings or through even in times of stress. Our asset outright sales. SSBT is a member of liquidity metric is similar to the high the Federal Home Loan Bank of Boston, quality liquid assets under the US and this membership can allow for Liquidity Coverage Ratio (LCR). The advances of liquidity in varying terms average high-quality liquid assets for against high-quality collateral, which SSC, the Parent Company under the helps facilitate SSBT’s asset-and- LCR final rule definition, was $143.61 liability management. Each of these billion and $100.23 billion, post- sources of liquidity is used in prescribed haircuts, for the year ended State Street’s management of its daily December 31, 2020 and December 31, cash needs. Based on our level of 2019, respectively. consolidated liquid assets and our ability to access the capital markets 3.3.4 Intragroup Financial for additional funding when necessary, Interconnectedness including our ability to issue debt and We do not maintain a significant equity securities under our current derivatives book and do not typically universal shelf registration, rely on inter-affiliate guarantees or management considers our overall guaranteed debt issuances that would liquidity as of December 31, 2020 to create additional financial demands, be sufficient to meet our current logistical complications or other commitments and business needs, complexities in a resolution scenario. including accommodating the Since October 2018, SSC enters into transaction and cash management a limited number of uncleared swaps needs of our clients. with SSBT to hedge against interest rate risk as a result of the US clean Central to the management of our holding company requirements, but liquidity is asset liquidity, which these do not have a material impact consists primarily of unencumbered to State Street’s Single Point of highly liquid securities, cash, and cash Entry strategy. equivalents reported on our consolidated statement of condition. We restrict the eligibility of securities

73 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.4 Memberships in Material bank network. On Exhibit 19, we Payment, Clearing and have summarized our direct-member Settlement Systems relationships with payment, clearing We provide our clients with access and settlement systems, mainly held to more than 100 markets for core through SSBT, in seven central custody services. We access payment, securities depositories, seven direct clearing and settlement systems payment systems and one FX net directly through membership in settlement system. FMUs or indirectly through our agent

Exhibit 19: Memberships in Material Payment, Clearing and Settlement Systems

Payment, Clearing and FMU Type Description of the Service Settlement System A national securities book-entry system that is Fedwire Securities Service owned and operated by the Federal Reserve; (Fedwire Securities) conducts real-time transfers of securities and related funds, on an individual and gross basis

Depository Trust Clearing Provides clearing, settlement, safekeeping and Corporation, which includes information services for equities, corporate and Depository Trust Company municipal bonds, government and mortgage- (DTC), National Securities backed securities, money market instruments, Clearing Corporation and over-the-counter derivatives; designated as (NSCC) & Fixed Income systemically important by the Financial Stability Clearing Corporation (FICC) Oversight Council

Canada’s national securities depository, clearing CDS Clearing and and settlement hub. It provides a gateway between Central Depository Services Inc. Canada and the United States to meet the increasing Securities (CDS) demand for cross-border clearing and settlement of Depositories depository-eligible securities CREST (operated by Central securities depository for UK markets Euroclear UK & Ireland and Irish stocks. CREST operates an electronic Limited) settlement system to settle international securities

International central securities depository and settlement services for cross-border transactions Euroclear involving bonds, equities, derivatives and investment funds International central securities depository and settlement services for cross-border transactions Clearstream Luxembourg involving bonds, equities, derivatives and investment funds

Clearstream Frankfurt Central securities depository for the German market

74 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 19: Memberships in Material Payment, Clearing and Settlement Systems (Continued)

Payment, Clearing and FMU Type Description of the Service Settlement System A real-time gross settlement system and wire Fedwire Funds Service transfer services provider that is owned and (Fedwire Funds) operated by the Federal Reserve Banks

Large-value wire transfer payment system with Clearing House Interbank real-time final settlement of payments; designated Payment System (CHIPS) as systemically important by the Financial Stability Oversight Council

Clearing House Automated UK interbank payment system for large value Payment System (CHAPS) sterling payments

Direct Real-time, electronic wire transfer system in Canada Large Value Transfer Payment that processes large-value or time-critical payments System (LVTS) Systems quickly and continually throughout the day Australia’s high-value payments system, which is Reserve Bank Information used to settle payment obligations on a real-time and Transfer System (RITS) gross settlement basis Trans-European Automated Real-Time The settlement system for cross border payments Gross Settlement Express in euro, with settlement in central bank money Transfer System (TARGET2)

Clearing House Automated Real Time Gross Settlement system for the transfer Transfer System (CHATS) of funds in Hong Kong

Multi-currency cash settlement system that settles payment instructions related to trades in FX spot Foreign contracts, FX forwards, FX options, FX swaps, Exchange (FX) Continuous Linked non-deliverable forwards, credit derivatives Settlement Settlement (CLS) and seventeen major currencies; designated as Systems systemically important by the Financial Stability Oversight Council

75 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.5 Description of Derivative and Derivative financial instruments are Hedging Activities subject to credit and counterparty risk, State Street’s activities in the which is defined as the risk of financial derivatives markets are limited in loss if a borrower or counterparty is comparison to other major US banking either unable or unwilling to repay organizations. State Street enters into borrowings or to settle a transaction derivatives transactions primarily as a in accordance with the underlying principal foreign exchange (FX) market contractual terms. We manage credit maker to meet clients’ FX needs and for and counterparty risk by performing hedging purposes to manage interest- credit reviews, maintaining individual rate and foreign currency risk.14 counterparty limits, establishing FX contracts generally involve an netting arrangements, and executing agreement to exchange one currency collateral agreements where appropriate. for another currency at an agreed-upon Collateral agreements govern the rate and settlement date. Interest rate exchange of collateral when required contracts involve an agreement with under regulations, or as a result of a counterparty to exchange cash our internal risk-based assessment. flows based on the movement of We monitor and adjust collateral daily an underlying interest rate index. and generally hold collateral in the form of cash or highly liquid government Our clients typically use derivatives securities. We may be required to to manage the financial risks provide collateral to a counterparty associated with their investment goals in connection with entry into derivative and business activities. As an active financial instruments. Cash collateral participant in the FX markets, we trade received and cash collateral provided in as a market maker in FX forwards connection with derivative financial (deliverable and non-deliverable), spot instruments are recorded in accrued FX, FX swaps, and FX options to meet expenses and other liabilities and other client demand and use similar FX and assets, respectively, in our consolidated interest rate derivatives to manage the balance sheet. risks associated with these activities. In managing interest-rate and foreign currency and funding, we also utilize interest rate and FX derivatives, such as FX and interest rate futures and interest rate swaps, and manage these positions within established risk limits.

14 According to the Quarterly Report on Bank Trading and Derivatives Activities for the Fourth Quarter 2020 released by the Office of the Comptroller of the Currency, as of December 31, 2020, State Street’s consolidated derivatives positions comprised approximately 1% of the sum of Top 25 Holding Companies’ derivatives positions based on notional amounts..

76 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION If a derivative contract is considered SSC now enters into a limited number to be an accounting hedge, then on the of uncleared swaps with SSBT to hedge date on which the derivative contract against interest rate risk, but these is entered into, we designate the are not expected to have a material derivative as: impact to State Street’s Single Point of Entry strategy. • A hedge of the fair value of a recognized fixed-rate asset or liability or of an unrecognized firm 3.6 Material Supervisory Authorities commitment Our US and non-US operations are • A hedge of a forecasted transaction subject to extensive regulation. The or of the variability of cash flows Federal Reserve is the primary federal to be received or paid related to banking agency responsible for a recognized variable-rate asset regulating SSC and our subsidiaries, or liability including SSBT and SSGA Trust Co., for our US and non-US operations. • A foreign currency fair-value SSBT is a member of the Federal or cash-flow hedge Reserve and is an FDIC-insured • A hedge of a net investment in depository institution. In addition to a non-US operation supervision and regulation by the Federal Reserve and the FDIC, SSBT is subject to supervision and regulation Lastly, we use FX derivatives for by the Massachusetts Division of Banks risk management and liquidity and the regulatory authorities of those needs and these are recognized states and countries in which a branch as economic hedges. of SSBT is located. Our non-US banking Following the adoption of the US subsidiaries are also subject to QFC Stay Rules, State Street has regulation by the regulatory authorities also completed efforts to conform its of the countries in which they are derivative trading qualified financial located. Our businesses are regulated contracts (QFCs) to the requirements extensively by non-US governments, of those rules, which facilitates the securities exchanges, self-regulatory Single Point of Entry strategy by organizations, central banks and ensuring that the default of SSC (or regulatory bodies, especially in those any other affiliate) is not an event of jurisdictions in which we maintain default under the QFC and by ensuring an office. that there are no impermissible The following table lists key regulatory restrictions on transfer of the QFC. authorities for our material entities. In addition, following adoption of the clean holding company requirements,

77 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Exhibit 20: Key Regulatory Authorities

Primary Regulatory Secondary Regulatory Legal Entity Authority Authority Federal Reserve State Street Corporation N/A Massachusetts Division of Banks State Street Bank and Federal Reserve FDIC Trust Company Massachusetts Division of Banks State Street Bank and Trust Federal Reserve Hong Kong Monetary Authority Company, Hong Kong Branch Massachusetts Division of Banks Securities and Futures Commission State Street Bank and Trust Federal Reserve PRA Company, London Branch Massachusetts Division of Banks FCA State Street Bank and Trust Federal Reserve OSFI Company, Toronto Branch Massachusetts Division of Banks State Street Global Advisors Federal Reserve N/A Trust Company Massachusetts Division of Banks State Street International Federal Reserve N/A Holdings State Street Trust Company OSFI N/A Canada State Street Technology N/A N/A (Zhejiang) Company, Limited Statestreet HCL Services N/A N/A (India) Private Limited State Street Syntel Services N/A N/A Private Limited State Street Corporate Services N/A N/A Mumbai Private Limited15 State Street Bank International BaFin German Central Bank GmbH European Central Bank (ECB) State Street Bank International BaFin German Central Bank GmbH Luxembourg Branch European Central Bank (ECB) CSSF State Street Bank International BaFin German Central Bank GmbH Poland Branch ECB State Street International N/A N/A (Ireland) Limited State Street Custodial Services Central Bank of Ireland N/A (Ireland) Limited State Street Fund Services Central Bank of Ireland N/A (Ireland) Limited State Street Intermediate N/A N/A Funding LLC

SSB Realty, LLC N/A N/A

State Street Global Advisors FCA SEC Limited SEC SSGA Funds Management, Inc. NFA CFTC StateStreet Global Advisors India N/A N/A Private Limited

15 State Street Corporate Services Mumbai Private Limited (SSCSM) is currently an indirect subsidiary of SSC (outside of the SSBT chain); State Street is expecting to transfer the shares of SSCSM to SSIH and another subsidiary of SSIH, State Street London Holdings Ltd. SSCSM will continue to serve as a service hub and remain a Material Entity following the transfer.

78 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.7 Principal Officers The following table lists the principal officers of SSC and SSBT as of June 30, 2021, all of whom are appointed by our Board.

Exhibit 21: Principal Officers

Name Position

Ronald P. O’Hanley Chairman, President and Chief Executive Officer

Eric W. Aboaf Executive Vice President and Chief Financial Officer

Executive Vice President, Global Controller and Ian W. Appleyard Chief Accounting Officer

Executive Vice President and Chief Executive Officer of State Street Francisco Aristeguieta Institutional Services

Executive Vice President, Chief Productivity Officer and Andrew J. Erickson Head of International

Executive Vice President and Chief Human Resources and Kathryn M. Horgan Citizenship Officer

Andrew P. Kuritzkes Executive Vice President and Chief Risk Officer

Louis D. Maiuri Executive Vice President and Chief Operating Officer

David C. Phelan Executive Vice President, General Counsel and Secretary

Michael L. Richards Executive Vice President and Chief Administrative Officer

Cyrus Taraporevala President and Chief Executive Officer, State Street Global Advisors

79 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.8 Description of Material 3.9 Conclusion Management Information Systems We view resolution planning as We maintain comprehensive integral to our overall risk management management information systems framework and consider resolvability to support timely access to accurate as one part of our day-to-day business accounting, finance, regulatory, risk strategy and operating model Significant management and operational reporting. resources, including executive Our management information systems management focus, are devoted to include a combination of proprietary resolution planning. Our overall and third-party systems, including resolution strategy seeks to minimize global data warehousing applications risk to the financial system. that allow us to identify, monitor and manage risks such as counterparty Our preferred resolution strategy, exposures, market risk, interest rate the Single Point of Entry strategy, risk, and operational risk. These tools has been evaluated and analyzed also allow us to produce timely and from a number of perspectives, and accurate financial information to tested, to confirm its feasibility and manage our businesses and support soundness. Our resolution strategy regulatory reporting. is designed so that key components of our businesses and the critical Through the issuance of regulatory operations we perform would be able guidance, the Agencies have outlined to continue after the failure of SSC; management information systems thereby minimizing any disruption capabilities required for resolution to our clients and to the stability of preparedness. To address these the US and global financial system. requirements and support our recovery and resolution strategy, we maintain a centralized global inventory of management information systems capabilities, including resolution critical reports and the associated management information systems that store and maintain the firm’s resolution critical data.

80 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION 3.10 Glossary

Term Definition

The final rule implementing Section 165(d) of the Dodd-Frank 165(d) Rule Act jointly issued by the Federal Reserve and the FDIC. Final rule printed in the Federal Register on November 1, 2019. Final Guidance released by the Board of Governors of the Federal 2019 Guidance Reserve System and the Federal Deposit Insurance Corporation and printed in the Federal Register on February 4, 2019.

Feedback letter from the Agencies to State Street for 2019 feedback letter the 2019 resolution plan (letter dated December 16, 2019).

2019 Plan State Street’s Resolution Plan submitted by July 1, 2019

Letter from the Agencies to State Street for the 2021 targeted plan 2020 targeted letter (letter dated June 29, 2020)

2021 Targeted Plan State Street’s Resolution Plan submitted by July 1, 2021

Board of Governors of the Federal Reserve System and Agencies the Federal Deposit Insurance Corporation

APAC Asia Pacific

AUC Assets Under Custody

AUC/A Assets Under Custody and Administration

AUM Assets Under Management

Bundesanstalt für Finanzdienstleistungaufsicht BaFin (German Federal Financial Supervisory Authority)

BAU Business-As-Usual

Board State Street Corporation’s Board of Directors

CDS Clearing and Depository Services Inc.

CERT-R Crisis Executive Response Team for RRP

CF Client Facing

CFTC Commodity Futures Trading Commission

CHAPS Clearing House Automated Payment System

CHATS Clearing House Automated Transfer System

CHIPS Clearing House Interbank Payments System

CLS Continuous Linked Settlement

81 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Term Definition

CREST Certificateless Registry for Electronic Share Transfer

CSSF Commission de Surveillance du Secteur Financier

Dodd-Frank Act Dodd-Frank Wall Street Reform and Consumer Protection Act

DTC Depository Trust Company

ECB European Central Bank

EMEA Europe, the Middle East, and Africa

ETFs Exchange Traded Funds

FCA Financial Conduct Authority

FDIC Federal Deposit Insurance Corporation

Federal Reserve Board of Governors of the Federal Reserve System

Fedwire Funds Fedwire Funds Service

Global Markets State Street Global Markets Business Unit

Institutional Services State Street Institutional Services Business Unit

HKMA Hong Kong Monetary Authority

Investment management Investment Management Core Business Line

LCR Liquidity Coverage Ratio

LER Legal Entity Rationalization

State Street’s principles and criteria for a rational and LER-C less-complex legal entity structure

LP Liquidity Provider

LVTS Large Value Transfer System

MH Membership holder

MRAC Management Risk and Capital Committee

NSCC National Securities Clearing Corporation

OCIO Outsourced Chief Investment Officer

82 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Term Definition

OSFI Office of the Superintendent of Financial Institutions

PCS Payment, Clearing and Settlement

PRA Prudential Regulation Authority

RCAP Resolution Capital Adequacy and Positioning

RCEN Resolution Capital Execution Need

A plan for rapid and orderly resolution in the event of material Resolution Plan financial distress or failure

RITS Reserve Bank Information and Transfer System

RLAP Resolution Liquidity Adequacy and Positioning

RLEN Resolution Liquidity Execution Need

RRP Recovery and Resolution Planning

RRP ERB Recovery and Resolution Planning Executive Review Board

RRP Office Recovery and Resolution Planning Office

SEC Securities and Exchange Commission

SI Service infrastructure

Single Point of Entry State Street’s preferred resolution strategy

SS HCL Statestreet HCL Services (India) Private Limited

SS Syntel State Street Syntel Services Private Limited

SSTZ State Street Technology (Zhejiang) Co., Ltd.

SSB Realty SSB Realty, LLC

SSBI GmbH State Street Bank International GmbH

SSBI GmbH - Krakow State Street Bank International GmbH Poland Branch

SSBI GmbH - Lux State Street Bank International GmbH Luxembourg Branch

SSBL State Street Bank Luxembourg S.C.A.

SSBT State Street Bank and Trust Company

83 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Term Definition

SSBT - Hong Kong State Street Bank and Trust Company, Hong Kong Branch

SSBT - London State Street Bank and Trust Company, London Branch

SSBT - Toronto State Street Bank and Trust Company, Toronto Branch

SSC State Street Corporation

SSCSIL State Street Custodial Services (Ireland) Limited

SSCSM State Street Corporate Services Mumbai Private Limited

SSFSIL State Street Fund Services (Ireland) Limited

SSIF State Street Intermediate Funding LLC

SSIH State Street International Holdings

SSIIL State Street International (Ireland) Limited

SSGA State Street Global Advisors

SSGA FM SSGA Funds Management, Inc.

SSGA Ltd. State Street Global Advisors Limited

SSGA Trust Co. State Street Global Advisors Trust Company

SSGAIPL StateStreet Global Advisors India Private Limited

SSTCC State Street Trust Company Canada

State Street Corporation, together with its subsidiaries on State Street a consolidated basis An agreement entered into by SSC, the funding entity, the material entities and certain intermediate entities to provide capital and Support Agreement liquidity resources to material entities pursuant to the Single Point of Entry strategy Trans-European Automated Real-Time Gross Settlement Express TARGET2 Transfer System

84 STATE STREET 2021 RESOLUTION PLAN – PUBLIC SECTION Where you can find more information State Street Corporation (SSC) files annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (SEC). SSC’s SEC filings are available to the public over the Internet at the SEC’s website at sec.gov. Copies of certain information filed by SSC with the SEC are also available on SSC’s website at statestreet.com. Neither the SEC’s nor SSC’s website are a part of this document. You may request a copy of these filings, at no cost, by writing or telephoning SSC at the following address: State Street Corporation One Lincoln Street Boston, Massachusetts 02111 Telephone: +1 617 786 3000 Attn: Corporate Secretary

State Street Corporation One Lincoln Street, Boston, MA 02111 www.statestreet.com

Except as specifically incorporated by reference into this document, of future results. Management’s expectations and assumptions, and information contained in these filings is not part of this document. Certain the continued validity of the forward-looking statements, are sub information in this document has been extracted from SSC’s Annual ject to change due to a broad range of factors affecting the national and Report on Form 10-K for the year ended December 31, 2020 (the “2020 global economies, regulatory environment and the equity, debt, currency Form 10-K”) and its Quarterly Report for the period ended March 31, 2021 and other financial markets, as well as factors specific to SSC and its (the “First Quarter Form 10-Q”) filed with the SEC. Information contained subsidiaries, including State Street Bank and Trust Company. SSC cannot in reports and other filings SSC makes or had made with the SEC anticipate all developments that may adversely affect its business or subsequent to the date of the 2020 Form 10-K and First Quarter Form operations or its consolidated results of operations or financial condition. 10-Q may modify or update and supersede the information contained in the 2020 Form 10-K, the First Quarter Form 10-Q and provided in this Actual outcomes and results may differ materially from what is expressed document. It should be assumed that the information appearing in this in SSC’s forward-looking statements and from SSC’s historical financial document that was extracted from the 2020 Form 10-K is accurate only results due to, among others, the factors disclosed in SSC’s SEC filings, as of the date of the 2020 Form 10-K and that the information appearing including the risk factors discussed in the 2020 Form 10-K. Forward- in this document that was extracted from the First Quarter Form 10-Q looking statements included in this document should not be relied on as is accurate only as of the date of the First Quarter Form 10-Q. SSC’s representing SSC’s expectations or beliefs as of any date subsequent to business, financial position and results of operations may have changed the time this document is submitted to the Board of Governors of the since those dates. Federal Reserve System and the Federal Deposit Insurance Corporation, and forward-looking statements in any of SSC’s filings with the SEC Forward-Looking Statements should not be relied on as representing SSC’s expectations or beliefs as This document, SSC’s filings with the SEC and any documents of any date subsequent to the time such documents were filed with the incorporated by reference in this document contain statements that SEC (or, if earlier, the time indicated in such filings). SSC undertakes no are considered “forward-looking statements” within the meaning of US obligation to revise its forward-looking statements after the time they securities laws. Terminology such as “plan,” “expect,” “intend,” “objective,” are made. “forecast,” “outlook,” “believe,” “anticipate,” “estimate,” “seek,” “may,” “will,” “trend,” “target,” “strategy” and “goal,” or similar statements or variations SSC’s Resolution Plan, which is summarized in this document, is not binding of such terms, are intended to identify forward-looking statements, on a bankruptcy court or other resolution authority and the proposed although not all forward-looking statements contain such terms. failure scenario and associated assumptions are hypothetical and do not necessarily reflect an event or events to which SSC is or may become subject. Forward-looking statements are subject to various risks and uncertainties, which change over time, are based on management’s expectations and ©2021 State Street Corporation and/or its applicable assumptions at the time the statements are made, and are not guarantees third party licensor. All Rights Reserved.