Chicago Bank To Get $1.5B From U.S. Treasury

11/27/2008 05:12 am ET | Updated May 25, 2011
  • Paul Merrion Crain's Chicago Business

The Treasury Department will invest $1.5 billion in Northern Trust's senior preferred stock and warrants as part of the federal government's effort to stabilize the financial industry, the bank announced early Monday.

The amount equals 3% of Northern's risk-weighted capital, the maximum allowed under terms set by Treasury.

"Northern Trust fully supports the U.S. government's efforts to strengthen our nation's financial system," said Frederick H. Waddell, president and chief executive officer of Northern Trust, in a statement. "While our capital ratios exceed, by a considerable margin, those needed to earn the designation 'well capitalized,' the program will provide us with additional capital to maximize growth opportunities."