Financial Services Democrats Call on Northern Trust to Repay TARP Funds

It is good to see that Congress is paying attention to how our money, given out under TARP is being used. My hat is off to Barney Frank and the other members of Congress who joined him in challanging Norhtern Trust Bank for - as Frank put it - frittering away the money on lavish events.

The entire letter from Barney Frank to Northern Trust is contained in full below as part of this press release email.

For Immediate Release: February 24, 2009

Financial Services Democrats Call on Northern Trust to Repay TARP Funds

Washington, DC - House Financial Services Committee Chairman Barney Frank, along with 17 Democrats on the committee, sent a letter today to Frederick H. Waddell, the President and CEO of Northern Trust, in response to published media reports that, the company hosted a PGA golf tournament and several related parties. Democratic members of the committee “…insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events”

Below is the text of the letter:

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
http://financialservices.house.gov/