Northern Trust Corporation announced today its participation in the U.S. Department of the Treasurys voluntary Capital Purchase Program.
The Treasury has notified Northern Trust that it intends to invest $1.5 billion in senior preferred stock and related warrants in Northern Trust Corporation as part of the program. It is expected that the terms will be substantially similar to those announced by the Treasury on 14 October, 2008. The issuance of the preferred stock and warrants is subject to documentation, which is expected to be completed within 30 days.
Northern Trust fully supports the US governments efforts to strengthen our nations financial system, says Frederick H. Waddell, president and chief executive officer of Northern Trust. 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.
The investment in Northern Trust is part of the Treasury Departments purchase of up to $250 billion of senior preferred shares on standardized terms, which will qualify as Tier 1 capital. The senior preferred shares will be non-voting.