In short: Passing: one of "the big custodians of this world" IBKR plans to compete with for ETF and mutual-fund custody once chartered.
38:04our performance. — And the big custodians of this world, the Northern Trusts, the State Streets, the JP Morgans, what can you offer that they can't offer? What's your pitch to would-be mutual funds or ETFs? — We offer everything that they offer, and as a matter of fact we do it better, because for example our short inventory is available to see online for our customers, and they can not only see what we have but also our lending rates they can see online. So now many people
In short: Verrone's evidence for the "alpha market": "you're seeing all these asset managers start to break out here for the first time in years… everything from State Street to T. Rowe to Invesco… that's really been the leadership in the asset management space." The active-vs-passive read: they "have been on the wrong side of the passive trade for the better part of the last 15 years in this QE environment," and the tape is now saying that regime is turning.
State Street is a custody and asset-management firm — it safeguards institutional portfolios and runs index funds. It sits in the group Verrone points to as evidence for the episode's biggest structural claim: after fifteen years in which money flowed relentlessly from active managers to cheap passive funds, the traditional asset managers are "breaking out for the first time in years."
Why that matters beyond the sector: if 2026 is "about the E, not the P/E" — earnings doing the work while valuations shrink — then differences between companies start mattering more than the direction of the whole index. Strategas calls that an "alpha market," and the asset-manager charts are their evidence that the market is starting to believe it.
12:22Rowe to Invesco. That's really the leadership within the asset — Yeah, Ben's been a great chart. That's really been the leadership in the asset management space. Interesting. Yeah. And again, I think I can't think of an industry that benefited more from near zero percent interest rates than private equity.
In short: Grouped with Bank of New York as a trust bank that operates "in a world all their own" — a category he has never found much value in following.
State Street is the other big US trust/custody bank, doing the same safekeeping-and-servicing work as BNY Mellon. Eisman groups the two together as a separate species from ordinary banks and says he doesn't follow either. Mentioned as a category, not as a call.
17:44Thanks in advance." With respect to Bank of New York, I have to confess that I have never paid that much attention. Bank of New York and State Street are trust banks and operate in a world all their own. I have never found that much value to focusing on them. Like every other large bank, Bank of New York has done well.
In short: One of the "Big Three" (with BlackRock, Vanguard) holding passive shares — "nobody's on the conference calls," so the market gets "dumber and dumber."
State Street is one of the "Big Three" giant money managers (alongside BlackRock and Vanguard) that run index funds — funds that simply hold a basket of stocks to match the market rather than picking winners.
His concern isn't the company itself but what it represents. So much money now sits in these passive index funds (over half the market) that "nobody's on the conference calls" doing real homework on individual companies. With ownership concentrated at three firms that just track the index, he argues the market gets "dumber and dumber" and slower to react when conditions change — like a huge ship that can't turn quickly. It's a warning about the system, hence a neutral, cautionary stance.
34:43There's no real active manager that's picking winners and losers. It's just a a large group of people that have their shares held at Black Rockck, Vanguard, and State Street. And nobody's on the conference calls. Nobody's actually doing the homework. And so the market gets dumber and dumber and dumber. And so we we argue in the book that when active management versus passive, passive starts to get up near 60%.
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Verbatim excerpts from the public transcripts (auto-pulled at each mention's timestamp, lightly cleaned). Timestamps link into the video; "source page" opens that commentator's full analysis at this row. Click a mention's header line to expand it (one open at a time). For personal study — not investment advice.