Thursday, October 9, 2008

Northern Trust bids to run $700B bailout

Well posted here because Northern Trust has a very nice branch located on 79th & State just off the Dan Ryan Expressway. I wish I had a photograph of the clock tower.

Crain's:
Northern Trust Corp. is partnering with the parent of the New York Stock Exchange in a bid to run the federal government’s $700-billion financial bailout effort.

The Chicago-based bank, which has $4.0 trillion in assets under custody, and NYSE Euronext, which owns the world’s leading stock exchange, submitted a joint proposal to the Treasury Department on Wednesday night, according to people familiar with the situation.

The Treasury Department said Monday night that it is seeking a financial institution with at least $500 billion in assets under custody to run the bailout effort, providing custody of assets, accounting, auction management and other “infrastructure” services. Proposals were due within 48 hours, reflecting the urgency needed to address the mounting global financial crisis.

Bank of New York Mellon Corp. and State Street Corp., the only other two asset custodians considered to be in Northern Trust’s league, also submitted proposals to run the bailout, according to Bloomberg News, which said the firms could not be reached for comment. Spokespeople for Northern Trust and NYSE Euronext declined to comment.
The financial industry is in trouble and there's still something worth bidding on for elements of the financial industry. Could this become business as usual?

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