The gossip site TMZ.com, with which BailoutSleuth is familiar only by reputation, reported today that Northern Trust Bank spent millions of dollars last week on a three-day extravaganza in Los Angeles.
The bank's parent company, Northern Trust Corp., received $1.57 billion in taxpayer capital in November through the Troubled Asset Relief Program (TARP). Other TARP recipients, including Bank of America Corp., and American International Group Inc., have come under fire in recent months for questionable spending.
Northern Trusts's weekend of fun revolved around its sponsorship of a PGA tour event, the Northern Trust Open. According to TMZ, the festivities included private concerts by rock acts Chicago, Earth, Wind & Fire, and Sheryl Crow.
Neither Northern Trust nor the PGA of America would disclose how much the bank paid to sponsor the golf tournament, held at the Riviera Country Club in Los Angeles. A PGA representative told TMZ that Northern Trust's fee went toward part of the $6.3 million in purse money, plus advertising costs and other expenses.
According to TMZ, Chicago was paid $100,000 for its appearance. A representative for Earth Wind & Fire and Crow declined to say how much that act received, and a representative for Crow did not respond to TMZ's inquires.
The gossip site also reported that Northern Trust paid for its employees to be put up in some of Los Angeles' swankiest hotels, including the Beverly Wilshire and the Loews Santa Monica Beach Hotel. Female guests received party favors from Tiffany & Co.
Northern Trust said in a statement given to TMZ that no TARP money was used for the golf sponsorship or other weekend events. It noted that banks getting capital through the Treasury Department's stock-purchase program are prohibited from using the funds for marketing, advertising, sponsorships or charitable contributions.
Unlike Bank of America, which spent millions on a Super Bowl party, or AIG, which took employees on a week-long retreat after taking $85 billion in taxpayer money, Northern Trust is still profitable. The firm recently reported net income of $794.8 million for 2008, up 9 percent from 2007. It earned $342.3 million of that in the fourth quarter.
The bank's parent company, Northern Trust Corp., received $1.57 billion in taxpayer capital in November through the Troubled Asset Relief Program (TARP). Other TARP recipients, including Bank of America Corp., and American International Group Inc., have come under fire in recent months for questionable spending.
Northern Trusts's weekend of fun revolved around its sponsorship of a PGA tour event, the Northern Trust Open. According to TMZ, the festivities included private concerts by rock acts Chicago, Earth, Wind & Fire, and Sheryl Crow.
Neither Northern Trust nor the PGA of America would disclose how much the bank paid to sponsor the golf tournament, held at the Riviera Country Club in Los Angeles. A PGA representative told TMZ that Northern Trust's fee went toward part of the $6.3 million in purse money, plus advertising costs and other expenses.
According to TMZ, Chicago was paid $100,000 for its appearance. A representative for Earth Wind & Fire and Crow declined to say how much that act received, and a representative for Crow did not respond to TMZ's inquires.
The gossip site also reported that Northern Trust paid for its employees to be put up in some of Los Angeles' swankiest hotels, including the Beverly Wilshire and the Loews Santa Monica Beach Hotel. Female guests received party favors from Tiffany & Co.
Northern Trust said in a statement given to TMZ that no TARP money was used for the golf sponsorship or other weekend events. It noted that banks getting capital through the Treasury Department's stock-purchase program are prohibited from using the funds for marketing, advertising, sponsorships or charitable contributions.
Unlike Bank of America, which spent millions on a Super Bowl party, or AIG, which took employees on a week-long retreat after taking $85 billion in taxpayer money, Northern Trust is still profitable. The firm recently reported net income of $794.8 million for 2008, up 9 percent from 2007. It earned $342.3 million of that in the fourth quarter.
published February 24, 2009, 0 Comments
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