Northern Trust to get $1.5 billion from Treasury

Northern Trust Corp., the Chicago- based bank, plans to sell $1.5 billion in stock and warrants to the U.S. Treasury Department as part of a $250 billion program to shore up the financial-services industry.

The government will buy nonvoting senior preferred stock and related warrants, Chicago-based Northern Trust said in a statement today. The bank expects the agreement to be completed within 30 days.

``The program will provide us with additional capital to maximize growth opportunities,'' Frederick Waddell, Northern Trust president and chief executive officer, said in the statement. The bank has enough money in reserves to be considered adequately funded, he said.

Northern Trust, a custody bank that oversees $3.53 trillion, also manages $652.4 billion in mutual funds and institutional accounts. Custody banks keep records, track performance of investment funds and lend securities to institutional investors such as pension plans and hedge funds.

The Treasury plans to buy stakes in thousands of U.S. banks to encourage financing and revive frozen credit markets. Northern Trust's largest rivals, Boston-based State Street Corp. and Bank of New York Mellon Corp., were among nine companies chosen to receive half of the outlay. State Street will receive $2 billion, while BNY Mellon will get $3 billion.