Northern Trust reveals $525m hit to help cash funds
Northern Trust has revealed that it will take a pretax hit of $525m (€366m) in the third quarter to offer financial help to certain investment funds the US custodian bank sponsors, according to a report in Chicago Tribune.
Citing “extraordinarily challenging market conditions”, Northern said it will record a charge of $290m for backing money market funds to enable them keep a net asset value of $1.
The firm will also register nearly $150m in pretax hit to cover institutional investors whose cash collateral is invested in five so-called "constant dollar" investment pools, the report said.
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