Your NPR news source

Chicago Bank to Get Federal Cash Injection

SHARE Chicago Bank to Get Federal Cash Injection

Chicago-based Northern Trust will soon get a big cash injection from the federal government. It’s part of the government’s massive financial bailout program.

The Treasury will invest $1.5-billion in Northern Trust. This is part of the $250-billion government plan to shore-up U.S. banks so they’ll be more likely to loan money. Some consumers and businesses have had a hard time getting loans recently.

A Northern Trust spokesperson says the company’s capital position was already in good shape. But he says the injection of federal money is a chance to obtain significant capital on good terms. The company’s stock has lost more than 40-percent of its value since peaking six weeks ago.

I’m Sam Hudzik, Chicago Public Radio.

The Latest