Sunday, 8th November 2009

 

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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Brummel

Relocation, relocation, relocation

Banks have never been shy of firing staff at the merest whiff of a downturn. First the fat, then the muscle and finally the bone. In the past, cuts have been so deep that firms have found it hard to benefit when the markets rebounded, paying over the odds to restaff at speed. Such wild oscillations in staffing numbers are known as “doing a Merrill”.

Rich Monitor

Sotheby's 3Q loss widens

Sotheby's third-quarter loss widened as the art auction house posted a worst-than-expected decline in revenue and a tax expense.

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