Posted on 02/25/2009 4:11:03 PM PST by Libloather
Democrats demand bank return bailout funds
February 25, 2009
U.S. Rep. Barney Frank, D-Mass., has asked Northern Trust Corp. to return U.S. bailout funds equivalent to the bank's allegedly lavish entertainment expenses.
In a letter to the bank, Frank, chairman of the House of Representatives Financial Services Committee, said we insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events.
The letter, signed by Frank and 17 Democrats, referred in part to the bank's entertainment expenses connected with a PGA golf tournament that the company sponsors, the Chicago Tribune reported Wednesday.
As part of the federal Troubled Asset Relief Program, Northern Trust has accepted about $1.5 billion in federal funds. Last week, it flew hundreds of staff members and customers to Los Angeles for a luxurious retreat that include concerts by Chicago, Earth, Wind & Fire and Sheryl Crow, the newspaper said.
This behavior demonstrates extraordinary levels of irresponsibility and arrogance, the letter said.
A bank spokesman said the entertainment was part of the company's marketing strategy. It's about client relationships and showing appreciation for clients, he said to the Tribune.
TMZ: Barack Silent on Luxe Parties by Bank Who Gave Him Unusually Low Mortgage Rate
debbieschlussel.com
Can I have my tax money back please?
No?
That’s what I thought.
I've also heard they were using their money, the bank is in good shape and didn't even need or want the bailout money.
They ought to wrap it up, give it back to Barney and tell him to shove it.
Then why did they accept it?
If I understand correctly, they had no choice.
“U.S. Rep. Barney Frank, D-Mass., has asked Northern Trust Corp. to return U.S. bailout funds equivalent to the bank’s allegedly lavish entertainment expenses.”
Hey! You!! Give US back our representative Republic, immoral hypocrite!!!
Give back all of your pay, benefits, hush money and sweet hearts deals, GIVE IT BACK SCUM.
Hey, Barney Frank, UP *&%$#!!!
“The House voted Wednesday to kill a resolution calling for an ethics investigation into potential quid pro quo between lobbyist campaign donations and lawmakers.”
http://www.freerepublic.com/focus/f-news/2194120/posts
The following is the email we got today on this:
February 24, 2009
An Open Letter to Northern Trust Stakeholders:
In recent days, questions have been raised regarding Northern Trust’s sponsorship of the Northern Trust Open, a PGA event that has raised millions of dollars for charities, along with client-focused events during the Open.
We understand this is a time of great anxiety and financial distress, and the question of supporting an event such as the Northern Trust Open is legitimate. We came to the conclusion that no public purpose would be served by canceling the Northern Trust Open and related events.
Here’s why:
* Northern Trust had net income last year of more than $640 million, and paid for this event using normal operating funds.
* No Capital Purchase Program funds were allocated for operating expenses, including marketing, advertising, corporate sponsorship or charitable activities.
* Northern Trust did not seek the government’s investment under the U.S. Treasury’s Capital Purchase Program, but agreed to the government’s goal of gaining the participation of all major banks in the United States.
* Northern Trust pays dividends on Treasury’s investment, and will continue to pay them until the capital is returned. Currently, Northern Trust pays the government $78.8 million on an annual basis as a return on taxpayers’ investment - almost $20 million per quarter.
* Capital Purchase Program funds are supporting high quality loan growth, benefiting both private and institutional clients. As of December 31, 2008, our loans and leases grew to more than $30 billion, a 21% increase from December 31, 2007.
* This is the second year of Northern Trust’s five-year agreement to sponsor the Northern Trust Open. The tournament agreement was signed in 2007 and all associated contracts associated with client education and entertainment were signed months before the U.S. government’s Capital Purchase Program was contemplated.
* During tournament week, more than 2,000 clients and prospects from around the globe participated in activities including three financial education seminars for our personal and institutional clients.
* Over the past two years, Northern Trust has raised $3 million dollars for the Los Angeles Junior Chamber of Commerce Charity Foundation and the many non-profit organizations it supports. Over its entire history, this tournament has raised more than $50 million for the Los Angeles community.
At a time when the nation is attempting to rise above its current economic difficulties, it is important for healthy banks like Northern Trust to continue to invest in our clients and the communities we serve. We appreciate the support that you have given us and will continue to keep the lines of communication open.
Rick Waddell200
Frederick H. Waddell
President and Chief Executive Officer
Northern Trust Corporation
As stated above, Northern is quite financially healthy. Did not want or request any money...and it was basically forced on them.
Probably the best thing to do is for the government to waive the penalty for paying the money back, and allow them to get out of the deal.
“it flew hundreds of staff members and customers to Los Angeles for a luxurious retreat that include concerts by Chicago, Earth, Wind & Fire and Sheryl Crow, the newspaper said.”
They’re really probably pissed because they heard Sheryl Crowe used two sections of toilet paper instead of one.
$2,300 to Obama
Excellent letter! Thanks for posting it. That helps clear up a lot.
At this point, Northern Trust (if they have not already done so) should take the TARP money, segregate it into a separate account and leave it there.
If the Feds want it back, Northern Trust can send it back very easily and thereby not be accused of spending the TARP money on something frivolous.
It would be great if the CEO and the CFO of Northernwould charter a jet (a BIG one), take a Limo to the White House and sling the money back over the fence.
..and give Rahm the finger.
Oh, Did you hear the one about how Rahm is going to quit because over the weekend he got his hand caught in the garbage disposal and lost his middle finger, and all ability to communicate?
This is what happens when there is too much government... I applaud Northern Trust for sponsoring the PGA event, for raising millions of dollars for deserving charities, stimulating the local economy in LA, and TURNING A PROFIT ON THE EVENT!!!!!
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