The Wall Street Journal-20080112-Earnings Digest Brief -- Northern Trust Corp-- Net Income Reduced By Antitrust Settlement
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Earnings Digest Brief -- Northern Trust Corp.: Net Income Reduced By Antitrust Settlement
Northern Trust Corp. said its 2007 fourth-quarter net income will be reduced by $94.2 million, or 42 cents a share, as a result of its litigation accrual of $150 million related to the antitrust lawsuit settlement between Visa Inc. and American Express Co. reached in November. The Chicago multibank holding company said it recorded a $50 million charge for its proportionate share of the settlement between Visa and American Express, according to a Securities and Exchange Commission filing. Northern Trust said that while estimating potential losses is highly judgmental, it has recorded in the 2007 fourth quarter an additional liability and corresponding expense of $100 million, pretax, for the remaining litigation. Under the settlement, Visa agreed to pay American Express $2.25 billion. Visa's U.S. member banks will ultimately pay for the settlement, in part through the proceeds the banks will get from the company's initial public offering.
