AlphaNinja - Northern Trust (NTRS) announced today that it has fully paid back the US taxpayer, and that they really didn't need need the help after all.
CHICAGO, Aug. 26 /PRNewswire-FirstCall/ -- Northern Trust Corporation (Nasdaq: NTRS - News) announced today that it repurchased for $87 million the warrant issued to the U.S. Treasury to purchase approximately 3.8 million shares of common stock as part of the TARP Capital Purchase Program.
With the repurchase of the warrant today, Northern Trust will have paid to the U.S. Treasury an aggregate of more than $1.709 billion, which includes the repurchase of the preferred stock and the warrant together with all dividends paid on the preferred stock. In aggregate, the Northern Trust payments represent a 14 percent annualized return on investment to the U.S. Treasury and taxpayers.
"Although Northern Trust consistently has been a healthy bank, we participated in the Capital Purchase Program to support an important element of the government's effort to stabilize the nation's financial system at a critical time."
Well if we're going to be doing "bailouts," or offering "stimulus," this is the way to do it - we're paid back within a year and the taxpayer made 14% annualized....not bad.
While on the subject of Northern Trust, their July market commentary offers a slew of "big picture" data to chew on. One chart that caught my eye was the following-->>with consumer spending accounting for nearly 70% of GDP, we'd better hope we're not reverting to the mean in terms of personal outlays: