State Street Corporation, one of the world's largest custody banks and asset managers, partially recovered from a dire end to 2008 during the first quarter of this year, as the bank's troublesome asset-backed paper portfolio began to slowly recover, although profits declined 10%.

According to its first quarter statement this morning, profits and revenues at both the banks' core businesses declined as the markets fell, eroding the value of the assets State Street looks after and manages, and meaning it can levy less in fees.