Northern Trust Corp. said Monday that it had slight exposure to securities tied to failed brokerage Lehman Brothers Holdings Inc.
Concerns over Northerns silence on Lehman weighed on the stock of the Chicago-based trust bank last week, while its main competitors, Boston-based State Street Corp. and New York-based Bank of New York Mellon Corp., had outlined their exposure.
In a news release, Northern said client funds it manages held 7 million shares of Lehman when the company filed for bankruptcy protection last week, and that stake has since been cut to 300,000 shares. In addition, fixed-income funds managed by Northern almost entirely for institutional clients have about $821 million in Lehman-issued bonds. That is less than 0.2% of total fixed-income investments Northern manages for its clients.
Northerns money-market funds designed to be safe, low-yield investments for risk-averse investors have no exposure to Lehman, the company said. Other firms money funds have experienced heavy withdrawals on concerns they held securities that could cause investors to lose principal.
Northerns stock closed down $5.55, or 7.3%, at $71 Monday.
Steve Daniels is a reporter with Crains Chicago Business, a sister publication of Pensions & Investments