State Street (NYSE:STT) fell during the quarter as expectations for renewed Fed rate cuts increased. Earnings in trust banks like State Street and Bank of New York are pressured in a lower rate environment; however, State Street’s valuation is low, with the bank selling at about ten times earnings.
From Yacktman Asset Management (Trades, Portfolio)'s Yacktman Fund (Trades, Portfolio) second-quarter 2019 shareholder letter.
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