Here’s one answer…having a golf tournament, accepting swag, and gorging themselves at private dinner parties.  Yep, while you’re eating ramen noodles and wondering just how in the world you’re going to catch up on your mortgage payments after you were laid off from the job you’ve slaved at for ten years, bank bigshots are having a high old time playing Caddyshack:

The Chicago-based Northern Trust bank may have received $1.6 billion in federal bailout funds, but that did not dampen the lavish long weekend featuring a golf tournament and headliner music the bank threw in Los Angeles last week, much of which was caught on tape by the celebrity news outlet TMZ. Critics are up in arms over yet another apparent boondoggle hosted by a bank that received federal bailout funds. [...]

This is the second year in a row that the bank has hosted the Northern Trust Open, a golf tournament held at the Riviera Country Club in Pacific Palisades. The bank described it as “an integral part of Northern Trust’s global marketing activities”. But according to TMZ, the parties surrounding the event featured multiple rock concerts, gift bags from Tiffany’s, and private dinner parties at luxury hotels.

TMZ’s cameras were rolling when Sheryl Crow took the stage at the House of Blues in West Hollywood for a small private party.

They also took video of the band Chicago performing at the Ritz-Carlton after a dinner hosted by Northern Trust.

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.”

Their reasoning?  Well, you just gave us the money, we didn’t ask for it:

“The key point is Northern Trust is a business that earned an operating net income of $641 million last year,” said senior vice-president Douglas Holt. “We paid for these events ourselves. They were paid for as part of a business decision regarding an annual event to show appreciation for clients. Northern Trust is not a bank that was or is losing money and therefore had to go to the government for assistance.”

But the bank took a strikingly different tone in December when it announced it would eliminate 450 jobs.

“The macroeconomic environment has been extraordinarily difficult and has impacted all segments of the global economy,” said the bank’s CEO Frederick Waddell.

“Our decisions, while difficult, will further enhance Northern Trust’s position amid challenging conditions, while maintaining our focus on clients and those activities in which we have significant competitive advantage and continue to see opportunities for growth,” said Waddell.

Some in Congress say whether or not the bank sought the funding, once they accepted it they have a responsibility to the taxpayer.

“This type of spending is outrageous and disgraceful. The government did not hand over $1.6 billion for Northern Trust to go off partying or give away taxpayer-subsidized trinkets from Tiffany’s,” said Rep. Elijah Cummings (D-Md.) who sits on the House oversight committee.

“This is money that should be used to expand lending or pay the salaries of the hundreds of employees that the company recently laid off,” said Rep. Cummings.

Northern Trust says it is using the bailout money to support lending and that the expenses for the golf weekend came from their operating expenses, which do not include the federal funds.

And what were they supposed to do, cancel their party or stay in a Super 8?

Critics say even if the bank has contractual obligations, money could have been saved by canceling concerts or staying in budget accommodations.

“That’s really the issue more than prior commitments,” said Schatz. “You can cancel a concert.”

“You’ve recently fired 450 employees,” said Schatz, “so this certainly isn’t great for the morale of other employees or for the morale of taxpayers.”

Well, you know, maybe the combined salary of those 450 employees just covered the cost of the event.  Hey, somebody has to take one for the team.  Tiffany ain’t cheap, y’know.

Whether they asked for it or not, they accepted bailout money.  They are still using money from the taxpayer (that’s you and me, people) for their bank.  And then they go out and do something like this?  Where is the accountability?

And just what did these poor people do at their party?  Stand around a Crock-Pot eating little weenies on a toothpick while listening to CDs out of the dollar bin?

Northern Trust flew hundreds of clients and employees to L.A. and put many of them up at some of the fanciest and priciest hotels in the city. We’re told more than a hundred people were put up at the Beverly Wilshire in Bev Hills, and another hundred stayed at the Loews Santa Monica Beach Hotel. Still more stayed at the Ritz Carlton in Marina Del Rey and others at Casa Del Mar in Santa Monica.

Here are the highlights:

- Wednesday, Northern Trust hosted a fancy dinner at the Ritz followed by a performance by the group Chicago.

- Thursday, Northern Trust rented a private hangar at the Santa Monica Airport for dinner, followed by a performance by Earth, Wind & Fire.

- Saturday, Northern Trust had the entire House of Blues in West Hollywood shut down for its private party. We got the menu — guests dined on seared salmon and petite Angus filet. Dinner was followed by a performance by none other than Sheryl Crow.

There was also a fabulous cocktail party at the Loews. And how’s this for a nice touch: Female guests at the Chicago concert all got trinkets from … TIFFANY AND CO.

So how much did this run, cost-wise?

As for what all that costs: Well, the company isn’t talking. We spoke with a rep from the band Chicago who said Northern Trust paid them around $100,000. A House of Blues source told us it cost more than $50,000 to close the joint down last Saturday night. As for Sheryl Crow’s fee, her rep didn’t get back to us. Earth, Wind & Fire acknowledges payment but won’t say how much.

As for the golf tournament, a rep from the PGA told us Northern Trust wrote one big fat check in order to sponsor the event. That check covers part of the $6.3 million purse, the advertising costs for the spots on CBS (which broadcast the final two rounds of the tournament) and operating costs. The rep says the fee was negotiated and is confidential.

Lots of people from Northern Trust went to the golf tourney … in special Mercedes that shuttled them to and from the hotels. But for those who weren’t into golfing, they could spend a few hours at the Northern Trust seminar on the credit crunch.

Wonder if they’d give me a loan if I asked real nice?  Hey, if they don’t need that $1.6 billion dollars, I got a few bills I could use some help with.  And I’m kind of tired of ramen.  Hey, I ain’t sayin’, I’m just sayin’.

Source: k

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