Northern Trust bank blows bucks on lavish L.A. parties!
Chicago-based bank Northern Trust Corp. recently received $1.6 billion in bailout money from the federal government.
According to TMZ, the bank managed to spend a significant chunk of that change hosting several lavish L.A. parties and concerts during last week's Northern Trust Open, a PGA Tour event.
Now the government has found out and is asking for the money back.
Rep. Barney Frank, D-Mass. -- chairman of the House Financial Services Committee -- and 17 Democrats who sit on the committee sent a letter to Northern Trust's CEO asking that the bank repay what it spent on the entertainment during the golf tournament.
The letter read: "This behavior demonstrates extraordinary levels of irresponsibility and arrogance. We insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events."
After laying off 450 employees in December, the bank reportedly flew hundreds of clients and employees to L.A. and housed them at swanky hotels.
More than 100 were put up at the Beverly Wilshire in Beverly Hills. Another 100 bunked at the Loews Santa Monica Beach Hotel. Some stayed at the Ritz Carlton in Marina del Rey, and others camped out at Casa del Mar in Santa Monica.
Here's the fun they all had: first, a fancy dinner at the Ritz, followed by a performance by the group Chicago. Then Northern Trust rented a private hangar at the Santa Monica Airport for dinner, with a performance by Earth, Wind & Fire. 

On Saturday, Northern Trust sponsored a private party at the House of Blues in West Hollywood with a performance by Sheryl Crow, who was pretty darn busy raking in the bucks last week.
Crow performed at the Children Mending Hearts Gala at the House of Blues on Feb. 18 and at Global Green's annual pre-Oscar eco-soiree at the Avalon the night before playing the bank bash.
Northern Trust released this statement yesterday. In it, the bank acknowledges paying for the events, but insists that it didn't use federal bailout money. It says the PGA expenses came out of "operating expenses."
Oh, well, that makes a big difference. Why didn't they say so in the first place?
Wait, isn't money money? No matter what budget it comes from?
How stupid do they think we are?
Are you as mad as I am?
Photo: WireImage
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Just like all the others. Don't worry about expense, people can't do without us and we need fancy parties to help us relax. We work so hard to spend the taxpayers money
And the operating expense fund came from where?
Operating expenses come form operating income - the money that clients pay. The clients are paying the money that is spent on these kinds of events. The clients should be pissed, as they are paying for these events - not the government.
Ooh, I'll try that reasoning with my budget! I'll tell the mortgage company I didn't pay them...but I did have money to go on vacation because that was money in my vacation fund, not my mortgage fund. Completely different monies. Makes perfect sense.
The word you're looking for is 'fungible'.
I'm surprised the Nrothern Trust didn't host the party at Versailles - they're channeling Marie Antoinette. (I'm ready to channel Madame Defarge.)
Disgusting. How awful that this bank and so many other corporate entities are getting away with this. Good for Barack that he's being so tough on them.
email Northern trust executives here:
Frederick_Waddell@ntrs.com
William_Osborn@ntrs.com
Kelly_Welsh@ntrs.com
Aileen_Blake@ntrs.com
Jana_Schreuder@ntrs.com
William_Morrison@ntrs.com
Sherry_Barrat@ntrs.com
Timothy_Theriault@ntrs.com
Stephen_Potter@ntrs.com
Timothy_Moen@ntrs.com
Peter_Cherecwich@ntrs.com
Jennifer_Driscoll@ntrs.com
Peter_Gloyne@ntrs.com
Kelly_Mannard@ntrs.com
James_Rauh@ntrs.com
John_Skjervem@ntrs.com
Susan_Crown@ntrs.com
Arthur_Kelly@ntrs.com
Edward_Mooney@ntrs.com
Harold_Smith@ntrs.com
William_Smithburg@ntrs.com
Robert_McCormack@ntrs.com
John_Rowe@ntrs.com
Dipak_Jain@ntrs.com
Charles_Tribbett@ntrs.com
Nicholas_Chabraja@ntrs.com
Linda_Bynoe@ntrs.com
Enrique_Sosa@ntrs.com
Robert_Browne@ntrs.com
Steven_Fradkin@ntrs.com
If this were a sitcom it would be HILARIOUS!!! It's like the scene in Family Guy where Peter blows the families life savings so he can run a TV ad where he plays "Surfing Bird"!
Unfortunately it's happening in real life which makes we want to bang my head against a brick wall instead. (or better yet bang a banker's head against a brick wall)
I wonder what the annual salaries of the 450 people who are now unemployed by Norther Trust add up to...How many of those people could have had jobs another year if the company passed on this weekend?
The shame we should all feel right now is immense. Shame on them for doing it, shame on us for allowing our elected leaders to turn a blind eye for so long.
We are all to blame.
Is this the same Northern Trust bank in Chicago that gave Obama his sweetheart mortgage along with Tony Resko.