Northern Trust will take $328 million in charges

The company will increase the support for some cash investment funds previous covered through some capital support agreements and will add one additional fund to the coverage.

The capital support levels provided by Northern Trust will increase by $321 million to a maximum capital contribution of $550 million. That move will involve a charge of $181 million, or 80 cents per share.

The company will also provide support for securities-lending clients whose cash collateral is invested in five constant-dollar, commingled investment pools, which will incur charges of $94 million, or 42 cents per share.

Finally, the company said it will put in place a program offering to buy some illiquid auction rate securities that were bought through Northern Trust for Personal Financial Services clients, which will cost about $53 million, or 24 cents per share.

The company said it expects total charges of $1.46 per share in the third quarter.

On average, analysts surveyed by Thomson Reuters forecast a quarterly profit of $1.07 per share. The estimates typically exclude nonrecurring items.

The moves come after the Reserve Primary Fund, the nation's oldest money-market fund, suffered a setback that had occurred just once before in the industry's nearly four-decades-long history: Its underlying assets fell to 97 cents for each investor dollar put in, a phenomenon the industry calls "breaking the buck."

Shares fell $10.18, or 13 percent, to close at $69.72, following a broader market sell-off.