Northern Trust: Bailed Out Bank Spends Millions on Lavish Party
Tuesday, February 24, 2009 21:30
Northern Trust, a bank that has received $1.6 billion in bailout money just spent a fortune in L.A. hosting a series of lavish parties and concerts with celebrity entertainers.
The Chicago based Northern Trust bank sponsored the Northern Trust Open event last week in LA. The bank flew hundreds of clients and employees to L.A. and put many of them up some of the best hotels money can buy. Guests stayed at the Beverly Wilshire in Beverly Hills, Loews Santa Monica Beach Hotel and the Ritz Carlton.
Celebrity performers included the group Chicago, Earth, Wind & Fire, and Sheryl Crow.
Northern trust recently laid off 450 workers as the CEO of the company called the current economic conditions “extraordinarily difficult.”
Senator John Kerry called Northern Trust’s L.A. extravaganza “disgusting and stupid and pathetic.” Congressman Brad Sherman said, “Wall Street is laughing at us saying, ‘we got to keep your money and our lifestyle is unchanged.’”
Others from Congress have expressed outrage over the event as members are asking Northern Trust to give back some of bail out money. In a letter to Frederick Waddell, The CEO of Northern Trust, Rep. Barney Frank insisted the bank to “Immediately return the equivalent of what Northern Trust frittered away on these lavish events”
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Jeffry Pilcher says:
February 24th, 2009 at 10:20 pm
Meh… This story seems a tad populist/sensationalistic for you guys.
DV says:
February 25th, 2009 at 4:32 am
This is what you do when you sponsor a golf tournament – it is done by the sponsor at EVERY pro golf tourney. The media is overblowing things again – big surprise. I thought you guys would be better than to pick up on this misguided story.
Karmakaze says:
February 25th, 2009 at 4:47 am
These other two commenters must work for Northern Trust… only an employee or a retard would think this is “no big deal”.
If Northern Trust was in such dire financial straights that they had to take 1.5 BILLION dollars off people who can’t afford to lose it (the average Joe who once again gets to foot the bill) then they shouldn’t be sponsoring ANYTHING, let alone a sport for the spoiled rich.
The entire board, CEO and CFO of Northern Trust should be under investigation. Obviously they didn’t need the bailout, so taking it amounts to massive fraud in my book.
Tar and feathers says:
February 25th, 2009 at 6:35 am
I doubt this will be posted, but seriously….how much longer will this corruption continue before the American population is not only laughed into oblivion by the world, ridiculed for an eternity, camping in HOBO tent cities by the millions, dragged and beaten by burly fascist thugs from Blackwater…will you peoplenot enter into agreement amongst yourselves and begin the final preparations for the hostile takeover? I´d be outrageously ashamed to be an American if I were you, you have a duty to your legacy, or not, take action even if it means loss of libertyor life, otherwise you are doomed, so why not fight on your feet rather than on your knees?
DV says:
February 25th, 2009 at 6:43 am
Guess what dumbass Karmakazi – Northern Trust was PROFITABLE IN 2008. And they were ASKED to take the $1.5B – YES, THEY WERE ASKED TO TAKE IT as part of the bank bailout. They did not need a dime and congress basically told them to take it anyway…congress is the joke, not Northern Trust Do some research before spewing worhthless dribble on blogs. Go to the next pro golf tourney and tell me what the main sponsor is doing – they will all have the same parties for clients that Northern Trust had…it is basically MANDATORY for sponsors to do this stuff. You are clueless Karmakazi, and your probably a liberal to boot.
phishybongwaters says:
February 25th, 2009 at 6:59 am
They HAD to take the money? you are the misguided fool sir, they took a “bailout” to keep them from going under, at the tax payers expense, and what did they do? They fired 400+ people then through a lavish party on YOUR dime.
How is this helping THEM stay afloat? how is this helping the economy?
Tell the people living on the street it was mandatory
chartingstocks1 says:
February 25th, 2009 at 7:27 am
not one of our best pieces i assume by the comments
it seemed a bit outrageous though, after laying off 450 people
DV says:
February 25th, 2009 at 7:49 am
They were asked to take the money = TRUE. They were going to go under if they didn’t take the money = ABSOLUTELY FALSE. They needed money to “stay afloat” = FALSE. Fired 4% of its workforce due to major economic slowdown = TRUE. The “lavish” party was on my dime = ABSOLUTELY FALSE ( they made $800M in profits in 2008 enough to throw a few of those parties every single day of the year for a couple years). Bitching about Northern Trust (with false information) is a waste of time. Please, there are much bigger fish to fry than N.T. – they had virtually nothing to do with the problems in wall street and banking in 2008.
Bullish says:
February 25th, 2009 at 9:07 am
Anybody who thinks it is okay for them to take that money and waste it is either a fool or one of them. If they had so much profit they should not have accepted the bailout. Once they took that money they were on the hook with the American people (who do not want them frittering away millions while firing hundreds). Congress should take every cent back. There is absolutely no justification for taxpayer money to be thrown down the well to sponsor celebrity events, CEO bonuses or any other function whatsoever except saving jobs and keeping the bank solvent.
flem says:
February 25th, 2009 at 9:56 am
The same thing that should have been done with the S&L scandal of the first Bush presidency should have been done with the current scandal. Round up everyone involved, Take away every thing they own to pay it back. And throw them in jail. But it didn’t for the same reason. People in the government are involved. Because our government is CORRUPT. “The tree of liberty must be refreshed, from time to time, with the blood of patriots and tyrants.”
Thomas Jefferson, 1787
DV says:
February 25th, 2009 at 10:07 am
I work in a golf related industry and NT never should have been allowed to sponsor this tourney if they would not be allowed to entertain in a fashion that is consistent with the TITLE sponsor. The bitching should have been about sponsorship which was set up years ago, not about the entertaining. If they did not entertain in the manner in which they did then they would have been the first in modern PGA Tour history not to do so. You can’t let someone sponsor one of the biggest tournaments of the year and tell them they have to serve hot dogs and diet cokes and have a guy with an accordian on stage. By the way, anyone care about the charities that benefit from NT sponsoring this event – no, you just want to blame because that’s what we do.
Jeffry Pilcher says:
February 25th, 2009 at 11:33 am
@chartingstocks – Just stick with what you guys do best. I don’t come here to watch you guys goad comments from people who can’t handle rational thought. I want your spin on things, your take. If you’re going to report stories that are designed to get a rise/reaction out of people, can we have a little analysis with it, please?
@karmakaze – I’ll phrase my response in vernacular that you can relate to: “F. U.” To elaborate, I didn’t say anything in my comment about whether Northern Trust’s move was a good idea or not. I merely think this story is not the kind of story Charting Stocks is known for. The fact that you feel compelled to call people names like “retard” (which is equal parts offensive and insensitive) is embarrassing. You need to calm down, and learn how to have a conversation with people you may disagree with without resorting to immature name-calling.
chartingstocks1 says:
February 25th, 2009 at 11:55 am
Jeff….thanks for the input
Karmakaze says:
February 25th, 2009 at 2:13 pm
@Jeffry Pilcher
“I’ll phrase my response in vernacular that you can relate to: “F. U.””
No pal, you are the one getting f*cked. Its not MY tax money being given to thieves and liars.
“I didn’t say anything in my comment about whether Northern Trust’s move was a good idea or not.”
No, you just said the equivalent of “let’s not talk about it” in an attempt to sweep this sort of systemic thievery under the rug. You may not be a Northern Trust employee, but I bet you work for one of the other thieving banks taking this money.
“I merely think this story is not the kind of story Charting Stocks is known for.”
Oh I see, you aren’t interested in the overall health of the economy etc… no you only care about how YOU can profit from it. Sounds just like a banker to me.
“The fact that you feel compelled to call people names like “retard” (which is equal parts offensive and insensitive) is embarrassing.”
You should be embarrassed. As I said, only a thieving banker or a retard would think this was OK, and you seem to have no problem with it.
“You need to calm down, and learn how to have a conversation with people you may disagree with without resorting to immature name-calling.”
What conversation? YOU were trying to STOP the conversation, so your opinion is worthless.
-
Do you guys want to know why nothing will really be done about this?
“The company managed George W. Bush’s investments in a blind trust during his presidency. Obama and his wife, Michelle, had their checking account and home mortgage with Northern Trust as of mid-January. ”
http://www.bloomberg.com/apps/news?pid=20601087&sid=ag_SN2YjFVv0&refer=home
Yep, these guys can spend all the taxpayer money they want. No one is going to stop them.
As for the retards saying they were “forced” to take the money. Fine, give it back then like the congresscritters are demanding, obviously Northern Trust doesn’t need it. Think of it as good PR. They spent millions on a golf tournament for advertising purposes, why not give millions back for the same reason? Let people see that not all banks are thieving liars…
I won’t hold my breath though.
Jeffry Pilcher says:
February 26th, 2009 at 10:44 am
What a fucking asshole — a rude, fucking asshole…
Jeffry Pilcher says:
February 26th, 2009 at 10:45 am
Use your real name, asshole.
You fucking coward.
BK says:
February 26th, 2009 at 2:05 pm
Saying “no” to the Federal Government, the same Federal Government that decides which banks get hit with exhorbitant regulatory fines (which are highly subjective in their assessment, I might add), is a difficult choice to make. When the government says they want you to take the money, even though you have absolutely no need for it, you still might have to take it to “wink wink”, avoid a subjective regulatory fine. That’s what Northern Trust did, they gave a prudent “yes” to money they did not need. I don’t work there. Nor do I bank there. Not only do I hope that Northern Trust returns the money that Barney Frank says was “frittered away”, I hope they return the 1.6 B in full. They can. They have it to spare. It would open the eyes of the American public that our government strong-armed them into taking it in the first place. Those of you who are so naive to think that Northern could have said “no” to the government’s request to participate frighten me. It amazes me that a company as profitable as Northern Trust, would be ridiculed for spending money on the tournament and its activities. Think of all the companies who had revenues thanks to the tournament and the activities. Think of all of the local workers who set up the tents, the stages, the sound equipment, the catering events. Think of all the hotel employees who were busy making beds, cleaning rooms. All of that business would have been adversely impacted had Northern backed out of the event. How very naive we have become!!!
DV says:
February 26th, 2009 at 3:19 pm
Well said BK. There have been dumb moves made by bailout recipiants but this was not one of them. NT did not deserve the condemnation – especially from people that have no clue.
Carol Galle says:
February 27th, 2009 at 2:10 pm
OK, I agree elected officials should not be sunning themselves in the Caribbean at the taxpayer’s expense, but not every business meeting is boondoggle! Events, meetings and travel can be strategic cost effective ways to retain and develop employee talent, build engagement, generate ideas, and share knowledge that drives business growth. As a professional meeting planner, I see it every day.
Unfortunately, because a few executives displayed incredibly poor judgment by hosting flashy gatherings while receiving TARP funds, the meeting industry’s reputation has taken a significant hit.
According to the U.S. Travel Association, meetings and events are responsible for 15 percent of all travel spending and generate more than 1 million jobs and nearly $40 billion in tax revenue. Our industry does not deserve to become the sacrificial lamb of this recession.
Face-to-face meetings and idea sharing can help move this country forward. Given a chance, professional meeting planners can help their clients make responsible decisions and host events that generate significant ROI. I hope our government leaders will take this into consideration before passing any legislation that stifles this growth and shuts down a viable industry.
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