In its 10-Q filing, Northern Trust disclosed that it received a subpoena from the U.S. Securities and Exchange Commission (SEC) this month seeking documents related to Northern Trust’s securities lending activities.
In the same filing, Northern Trust noted that as previously disclosed, the bank is being sued by several clients who participated in their securities lending program. The lawsuits claim that Northern Trust breached their fiduciary duty by imprudently managing the collateral reinvestment pools.
To settle two of these lawsuits, Northern Trust recorded a $19.2 million pre-tax charge in the fourth quarter of 2013, though these settlements are not final, as they require further approvals. Other securities lending related lawsuits are still pending, and Northen Trust did not disclose whether the SEC subpoeana is directly related to these lawsuits.
SEC Subpoenas Northern Trust for Securities Lending Documents
In its 10-Q filing, Northern Trust disclosed that it received a subpoena from the U.S. Securities and Exchange Commission (SEC) this month seeking documents related to Northern Trust’s securities lending activities.
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