State Street names new head of investment unit

State Street Corp. today named Scott Powers to head its Global Advisors investment unit, bringing in an outsider to deal with a division battered by the credit crunch.

Powers, 48, will leave his current post heading the US operations of British asset manager Old Mutual plc., State Street said.

At State Street Global Advisors, Powers takes a slot previously held by William W. Hunt, who stepped down in January as the company set aside $618 million to deal with problem investments tied to subprime mortgages. Hunt's temporary replacement, James S. Phalen, will return to his job heading international operations for State Street's investment servicing and investment research and trading business.

Global Advisors is the world's largest institutional asset manager with more than 2,900 clients and $2 trillion in assets under management as of Dec. 31.
(By Ross Kerber, Globe staff)