House Dems Ask Obama's Bank to Give Back Bailout Money
[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.
Josh
Elana
Matt
Eric
Not that Northern Trust shouldn't face some punishment for this, but Phil Mickelson won the Northern Trust Open this past week (the former L.A. Open).
February 24, 2009 4:04 PM | Reply | Permalink
Here it is folks - the looters have obtained the keys to the US treasury - a fantasy come true.
Just a few years ago if a looter wanted to get treasury money he had to take several steps : 1.) set up a company that looked at least somewhat legitimate; 2.) sell supplies/ammo/boots/war materiel to the US military; 3.) open up an office/warehouse in Dubai; 4.) pay off the right sort of congressman or lobbyist; 5.) bill the US government at a hugely inflated rate; 6.) wait for checks to pour in.
Now all those intermediate steps are eliminated. Now you just elbow your way to the front of the line and grab loot, straight out of the US treasury, by the billion.
Does anyone think that looters will EVER give this up ? This is like a drug addict getting the keys to the world's biggest pharmacy.
Give the money back, indeed !! What a joke ... HYUK HYUK.
February 24, 2009 4:42 PM | Reply | Permalink
As the Los Angeles Times pointed out, "presidents don't usually call winners of the LA Open, now [named] the Northern Trust. How about never."
wait, are we supposed to be surprised that obama called his friend? seriously?
anyway, it seems like this is fairly pointless if the amount in question is really just 50,000 out of all the money they were given. how about going after one of the banks that wasted millions on bonuses and expensive trips etc. that's the kind of money folks are really upset about. all i see coming of this, is that this gives the republicans another opportunity to lie their way into a manufactured obama scandal; given the opportunity they'll create a scandal per day, the way they did in the 90s.
February 24, 2009 4:57 PM | Reply | Permalink
never mind the first part since it has been edited out, though the article didn't actually say that he got a call from obama, it was written before he won and speculated that he might get one if he won, since they know each other.
but this whole thing still seems pretty pointless over a small sum, i'd rather see them go after the banks that wasted billions in stimulus money on bonuses etc. but i guess that would mean that they were actually trying to do something, rather than just trying to appear as though they are.
February 24, 2009 5:13 PM | Reply | Permalink
and dammit that should say bailout money. boo for no comment editing.
February 24, 2009 5:16 PM | Reply | Permalink