[ed. note: This post has been edited from the original, which incorrectly noted that the winner of last week’s Northern Trust golf tournament had received a phone call from the president.]
When it rains, it pours … hours after a major labor group asked the Treasury Department to deny bailout money to a bank that dropped half a million dollars on lobbying in three months, House Financial Services Committee Chairman Barney Frank (D-MA) is telling another bank to give back some of its government aid right now.
In a letter to Northern Trust — which, it should be noted, is the president’s personal bank — Frank and every Democrat on his committee chastise bank president Frederick Waddell for sponsoring a lavish golf tournament in Los Angeles and giving out Tiffany souvenirs to clients while taking taxpayer money.
“We insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events,” the Democrats wrote to Waddell.
The Democrats’ full letter to Northern Trust is after the jump.
Mr. Frederick H. Waddell
President and Chief Executive Officer
Northern Trust
50 South LaSalle
Chicago, IL 60603Dear 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
Late Update: Sen. John Kerry (D-MA) is also on Northern Trust’s case today, introducing a bill that would prevent government bailout beneficiaries from “hosting, sponsoring, or paying for conferences, holiday parties and entertainment events,” according to a release from his office this hour. Any company violating the terms would have to pay a fine and repay part of its government aid.
