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Exclusive: Will Northern Trust End Up Holding the Bag for Massive Pension Losses?

Wouldn't you also have to net out any gains that these pension funds gained during their participation in these securities lending pools -- and over the life of the agreement. That is, if they had gained 5-20 bps per year, but suffered some losses... these gains should be subtracted before you question the merits of this program. Also, give the sophisticated nature of a client such as Exxon -- they didn't enter into this arrangement uninformed... and NT certainly didn't invest the funds unilaterally without consent.