Via The Gavel -- which picks up a story that appears to have originated at, of all places, TMZ.com -- reports that TARP bailout recipient Northern Trust Corp. has been partying it up even as they've been on the dole.
They're into the TARP for $1.5 billion, but still sponsoring golf tournaments and flying clients in, putting them up at ritzy hotels, and hiring acts such as Chicago, Earth Wind & Fire and Sheryl Crow to provide entertainment.
Eighteen Democratic Members of the House Financial Services Committee members, led by Chairman Barney Frank (D-MA-04) strike down upon them with great vengeance and furious anger, insofar as this can be said of a Sternly Worded LetterTM:
Mr. Frederick H. Waddell
President and Chief Executive Officer
Northern Trust
50 South LaSalle
Chicago, IL 60603
Dear Mr. Waddell:
We are dismayed and angered to learn that Northern Trust recently spent millions of dollars on a PGA golf tournament sponsorship and associated parties at the same time it has taken over $1.5 billion in federal stabilization funding under the Troubled Asset Relief Program. According to published media reports, your bank not only sponsored the Northern Trust tournament at the Riviera Country Club, but also hosted clients and employees at places like the Beverly Wilshire and Ritz Carlton hotels and gave away Tiffany souvenirs. If this is accurate, we are demanding you take corrective action.
At a time when millions of homeowners are facing foreclosure, businesses and consumers are in dire need of credit, and the government is trying to keep financial institutions – including yours – alive with billions in taxpayer funds, 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. Federal taxpayers should not and will not stand for such abuses, and we will insist that any future Treasury support for Northern Trust be conditioned on a thorough reform of your company’s policies and practices.
We look forward to your reply and immediate reimbursement of these funds.
Sincerely,
Reps. Barney Frank, Carolyn Maloney, Brad Sherman, Dennis Moore, Wm Lacy Clay, Stephen F. Lynch, Brad Miller, Al Green, Gwen Moore, Paul W. Hodes, Keith Ellison, Charles Wilson, Bill Foster, Andre Carson, Mary Jo Kilroy, Steve Driehaus, Alan Grayson, Gary Peters
It's unclear, of course, whether these Members, the Committee, or even Congress itself is empowered to enforce such a demand. But good on them for at least making it.
You've got to check out TMZ to see just what kind of shenanigans they were up to out there. They even have video of the parties and the Tiffany swag bags.