Bailed out bank throws lavish party
Rep. Barney Frank wrote a strongly worded letter to Northern Trust asking for repayment.
Chicago-based Northern Trust bank got $1.6 billion in cash advances and bailout money from the government.
Nevertheless, the company hosted a pricey event this weekend, complete with celebrity rock concerts, Tiffany party favors and luxury hotels.
Government wants cash advances back
Now, Congress wants Northern Trust to give the government the money it spent on the soiree. The bank’s response: “We didn’t ask for a bailout.”
Northern Trust says it did not approach the federal government for bailout funds, but rather “agreed to the government’s goal of gaining the participation of all major banks in the United States,” according to ABC News.
Banks says it’s doing fine
Furthermore, Northern Trust says it is a lucrative company that made $641 million last year. It says it should not have to pay back the money spent on party expenses because it didn’t use any government cash advances. The company insists it paid for the party itself, and that the event was an important part of the bank’s marketing strategy.
Ex-employees: “Ouch”
That $641 million figure might be particularly difficult for about 450 people out there to stomach. Last year, Northern Trust laid off that many employees. Back then, the bank said “The macroeconomic environment has been extraordinarily difficult.”
Busted
Sheryl Crow is no discount show.
The environment at the bank’s party, which was held in Los Angeles, was anything but difficult. Celebrity gossip web site TMZ had camera operators stationed all over the party, so much of it was caught on tape. TMZ’s footage shows Sheryl Crow and the band Chicago performing at upscale venues.
Amazed and confused
Regardless of whether the bank should have to pay back the party money, I am still left with two questions.
What is a bank that says it is making plenty of money doing taking cash advances and taxpayer-funded bailout money? And what on earth is the government doing giving it to them?
Dumb and Dumber is all I have to say.
I hope they didn’t use taxpayer funding on this. That said, what were they doing taking bailout funds to begin with? If they didn’t need the money, then not taking any money, and therefore no obligations moral or otherwise, would be the smarter move. I understand cooperation, but is it really responsible for them to have done this, especially considering the negative publicity they’re getting for it?
You’re kidding right? How is it that sooooo many Executives and government officials are so completly out of touch with reality. I would love for each and every one of them to live a reqular middle-class lifestyle for a while. This should be complete with a shortage of funds to meet monthly needs. Then have a major applicance or a car break down. As far as I am concerned, I take every irresponsible spending of this bailout money personally because I pay several hundred dollars a month out of MY PAYCHECK on taxes. They need to act responsibly or be unemployed.