February 25th, 2009
11:00 AM ET
6 years ago

Bailed-out bank enjoys concerts, dinners, parties

Northern Trust sponsored a Professional Golf Association tournament and associated client events.
Northern Trust sponsored a Professional Golf Association tournament and associated client events.

(CNN) - A bank that received $1.6 billion dollars of the government's bailout money sponsored what reports are calling a lavish series of events in Los Angeles, California, last weekend.

Watch: Bailed-out bank has a blowout

Northern Trust, based in Chicago, Illinois, spent an undisclosed amount of money sponsoring a Professional Golf Association tournament and associated client events, including concerts, dinners and parties, according to celebrity Web site TMZ.com.

The bank spent millions of dollars on the event, which included - on top of the sponsorship costs of the Northern Trust Open tournament - concerts by Sheryl Crow and Earth Wind & Fire, a private party at music venue House of Blues and gift bags from Tiffany & Co., the Web site said.

According to TMZ.com's report, employees and clients attending the tournament dined on seared salmon and petite Angus filet and stayed at some of Los Angeles' most elegant and expensive hotels.

Doug Holt, senior vice president of communication for Northern Trust, confirmed to CNN that his bank sponsored the tournament and its events but, he said, not at taxpayer expense.

Full story


Filed under: TARP
soundoff (235 Responses)
  1. ANGIE-OH

    another bunch of lying greedy money grubbers. doug holt, senior vice president of communication for Northern Trus, give us a break. why do these banks that have taken money from the government keep trying to get away with this mess. they will continue to be exposed for the liars that they are. they must be repubs because they have not learned a damn thing.

    February 25, 2009 11:52 am at 11:52 am |
  2. Virginia

    And we are surprised why?

    February 25, 2009 11:54 am at 11:54 am |
  3. Matthew, Detroit

    NORTHERN TRUST DID NOTHING WRONG.

    READ THE FULL ARTICLE, BUT ALSO DO YOUR HOMEWORK.

    They did not ask for the money. The GOVERMENT jerks asked them to take the money. They wanted all the banks to take the money because they were AFRAID that the banks that TOOK money would have a run on them.

    NORTHERN is a solid bank that did not buy a bunch of crap loans from people who could not afford to get a loan. They run their own business and their practices have not been questioned. They have a solid portfolio with solid investments.

    YOU PEOPLE SPEAK UP WITH OUT KNOWING WHAT YOU ARE SAYING. JUST IGNORANT.

    February 25, 2009 11:54 am at 11:54 am |
  4. desibigb

    If I may ask..... 1) what is being done to stop it. 2) what will be done if a bank shows this kind of shameful behavior. The media does its job by exposing such episodes but nothing is done afterwards. We all now know they misused our money....now what.......bloody do something to stop it.

    February 25, 2009 11:54 am at 11:54 am |
  5. rock star

    we should call them ask for our money back or fire the ceo cfo and coo
    but maybe the worst thing we could due to them is to look at there books. these banks and wall streeters are just scum and they just don't get it

    February 25, 2009 11:55 am at 11:55 am |
  6. Canada

    This's america for you,shouldn't this bunch of idiot face jail to send message to thers?
    God save america frombecoming a third world nation

    February 25, 2009 11:55 am at 11:55 am |
  7. Lia

    So now comapanies can't spend money in the entertainment, convention center, hotel and catering industries, which by the way keep people in these industries employed, in order to rewards their employees who work hard. They didn't use bailout money. They didn't even need or ask for it. They were profitable!

    This story is merely meant to stir up emotions and paint anyone the finance industry as "those greedy bad guys" yet again. Sure there are a lot of crooks, too many to list, in the industry. But this is a huge industry with hundreds of thousands of hard working employees at all levels who volunteer, give to charity and keep other industries alive. I'm tired of everyone in the industry being villianized!

    February 25, 2009 11:56 am at 11:56 am |
  8. George the Democrat Obama fanatic.

    Cnn are you gettin ur breaking news from TMZ?????

    February 25, 2009 11:58 am at 11:58 am |
  9. Jim

    9-5'ers might to understand this, but for most entrepreneurs and upper management, this is a normal way of doing business. Many times events such as these give rise to new business opportunities — as the saying goes, you have to spend money to make money, and treating clients well is almost always rewarded. I'm not defending them if they are wasting taxpayer funds, just saying we should give them the benefit of the doubt.

    February 25, 2009 11:59 am at 11:59 am |
  10. observer

    Northern Trust, we don't trust you.

    The only way these banks will "get it" is for us to withdraw any and all funds we have in their corrupt institutions. Their excuse of "it wasn't taxpayer funds" is utterly hollow.

    If you know anyone who banks with these vultures, ask them to move their funds out of the bank, and be sure to tell them why you are doing it.

    Northern Trust, you are disgusting!

    February 25, 2009 12:00 pm at 12:00 pm |
  11. Ray Fisher

    Here we go again, they receive money from the government yet contend that money wasn't used for these things??? I guess America will continue to just lie back and take it!!!

    February 25, 2009 12:01 pm at 12:01 pm |
  12. Sam Sixpack

    The Great American "Stimulus" Robbery is still in progress. Why wait until after the money is gone before reporting the theft?

    February 25, 2009 12:01 pm at 12:01 pm |
  13. Laura, Boston

    The government should demand back the bail out money. We will see if Northern Trust will function well after the salmon and steaks are digested from their customers accounts!

    I work in a bank a small community bank in MA! We grew last year and did not take government bailouts. We believe our customer is the reason we have our jobs and everything we do is to better serve our customers.

    If big banks had the same feel for banking as us small community banks, America wouldn't be in the mess it is in!

    Laura, Boston

    February 25, 2009 12:02 pm at 12:02 pm |
  14. Dave

    This is exactly why I'm a member of a credit union...

    February 25, 2009 12:03 pm at 12:03 pm |
  15. Reggie

    People need to understand not all banks asked for money (even though they accepted it.) Some banks (such as Wells Fargo, and the is bank in the story) were told if you don't take it now, we won't help you later if you get in trouble. They are not BOA or AIG begging for money and even more money. You can't put all of them in the same light.

    February 25, 2009 12:03 pm at 12:03 pm |
  16. OBAMA GIRL

    Is anyone really shocked?

    February 25, 2009 12:03 pm at 12:03 pm |
  17. Matthew, Detroit

    CANADA.

    Stay in Canada. Keep your opinions in Canada.

    You have to commit a crime, be prosecuted, and then found guilty by a court of law before you go to jail.

    That was a stupid statement to make ( they should be put in jail).

    Again, like the others here. Stop using generalities. Get your facts straight. Northern Trust is a solid bank that DID not break any laws. It also did not write loans to low wealth individuals that could not qualify for a mortgage. Although, it was Bill Clinton who forced down the regulations to allow low end individuals to buy houses they could not afford. NO one has changed those regulations yet. BARNEY FRANK still will not change it.

    February 25, 2009 12:05 pm at 12:05 pm |
  18. Matthew, Detroit

    CANADA,

    You have to do something illegal and be convicted before you go to jail.

    Please stop spouting things that are just plain stupid.

    February 25, 2009 12:06 pm at 12:06 pm |
  19. Cheryl

    If you want the economy to recover then businesses and individuals need to spend money. That includes corporate events which benefit the restaurant and hospitality industry. Corportations don't hold events and people don't go out to eat then even more people will be thrown out of work and even more small businesses will fail.

    February 25, 2009 12:07 pm at 12:07 pm |
  20. Cheryl

    If you want the economy to recover then businesses and individuals need to spend money. That includes corporate events, which benefit the restaurant and hospitality industry. If corporations don't hold events and people don't go out to eat then even more people will be thrown out of work and even more small businesses will fail.

    February 25, 2009 12:07 pm at 12:07 pm |
  21. RR

    and you thought Obama would change things! Yeah right!

    demand the auto industry come up with a detailed plan for solvency, but the only string attached to bank bailout is on bonuses!

    everything old is new again!

    February 25, 2009 12:11 pm at 12:11 pm |
  22. Raul Dominguez

    I know that business can be conducted with dinners, over golf, etc., but clearly Northern Trust must have known 2 or 3 quarters ago that they were going in the crapper. Successful businesses know when to budget costs including marketing and promotion to weather downturns. Reducing their activities would have been appropriate, but it isn't in the mindset of some who feel they can keep mortgaging debt through schemes and phoney financial devices.

    February 25, 2009 12:11 pm at 12:11 pm |
  23. Political Queen

    Now this is the crap I don't like! This just can't happen and I think the money should be revoked from companies who continue the practices that put them in a position to need a bailout. This is outrageous! It's one thing to reward one's employees, but good Gosh, they can't afford it!

    February 25, 2009 12:12 pm at 12:12 pm |
  24. Ryan

    While I see the benefit of woo'ing potential clients... seriously, who in this economy, no matter what class you are – is that much of a moron to accept the finest wine or fish dinner? Really, who are you that you can't just do business without someone waiting on you hand and foot??

    Supposedly they didn't use tax payer dollars – like it would matter. Like we could stop them? They only way we can send a message to our leaders is to en masse, boycott paying our taxes this year!

    However that's not gonna happen.

    What's funny is, people think they'll go to jail for not paying taxes. Well, they can't throw everyone in jail, and if they did – who would fund the jail since everyone in it refused to pay their taxes?

    Just sayin.

    February 25, 2009 12:13 pm at 12:13 pm |
  25. yuri

    They still do not get it, do they? These economic terrorists must be humanely humiliated and must be brought to financial justice of returnin' the money with compound interest, if it was mis- or abused.

    February 25, 2009 12:13 pm at 12:13 pm |
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