Northern Trust taken to task on lavis...

Northern Trust taken to task on lavish parties

There are 419 comments on the Chicago Tribune story from Feb 24, 2009, titled Northern Trust taken to task on lavish parties. In it, Chicago Tribune reports that:

Chicago-based Northern Trust , which has received $1.6 billion in federal bailout money, spent millions on lavish parties in Los Angeles last week connected to the PGA's Northern Trust Open, TMZ.com reported ...

Join the discussion below, or Read more at Chicago Tribune.

Good Luck

Chicago, IL

#22 Feb 24, 2009
This populist sentiment led by Obama has become so stupid, it is making me rethink the intelligence of the average American.

Here is your choice folks, we could have Northern Trust pull out of its contractual commitment to the event. That would likely result in large legal fees for both parties and a financial settlement that would give each party less benefit than adhering to their contract. If that happened, and the event was not able to find a replacement sponsor, which would be hard in this economic environment, they would likely have to lay people off. That would not be in anyone's best interest.

Secondly, Northen Trust is a bank that caters primarily to high net worth clientelle. If you want this bank to remain a viable business, then it must be able to attract the type of clients that would benefit from Northern's specialization. The company is not going to attract high net worth clients by handing out free t-shirts at the local Walmart!

If you are so outraged by the bank's actions, why don't you ask the idiots in congress and the white house why they did not include specific language detailing the specific conduct required to obtain TARP funds?

The short answer would be that they were too busy trying to fill the "stimulus bill" with as much pork as possible, instead of creating legislation that has a clear sense of itself.

If this is the type of phony populism that is going to run the country for the next four years, we are going to see a massive increase in both government and despair.

The two go hand in hand.
ffej

Darien, IL

#23 Feb 24, 2009
stinkin banks
Big Picture

Downey, CA

#24 Feb 24, 2009
If they really wanted to create jobs and boost national morale they would have sponsored an event in Michigan.
Mosie

Palo Alto, CA

#25 Feb 24, 2009
Let's see - if the sponsors, such as Northern Trust, stop paying these huge amounts of money to professional sporting events, the revenue will drop, the tournament will be short on dollars, and the athletes will make much, much less than the millions they do now??? Let them join the ranks of the little people; this is all out of whack anyway.
MDinFL

New Port Richey, FL

#26 Feb 24, 2009
For all the people running Northern Trust under the bus, get a clue!!! They never asked for money from the government. They never participated in the subprime loan market. I'm sure they would love to give the money back but, as of yet, haven't been allowed. This is what happens when big government meddles in private business.
Geena

Chicago, IL

#27 Feb 24, 2009
Anne wrote:
The Post Master General has received a 40% raise in the past year - the government also okays what the Post Office does. Now our government wants to control the banks, your health care, the car companies....
One
Big
A ss
Mistake,
America
The USPS is the only government agency that is self funded. Meaning from stamps, shipping etc..
The article wasn't about the Post office.
We the Sheeple

Ashburn, VA

#28 Feb 24, 2009
Yeah, lets come down hard on one of the banks that is actually making a profit. One of the few banks that received TARP money that might actually be able to pay it back AND give the taxpayers a return on its investment. Lets jump all over this company, because they clearly don't know what they are doing if they are posting record profits.

Clearly what needs to happen is Northern employees need to unionize so that they can make outrageous demands and drive the company to the point where its on government welfare.

Move to Venezuela you socialist scum.
John

Arlington Heights, IL

#29 Feb 24, 2009
Herein lies the slippery slope - what are companies allowed to do with bailout money?

Executive compensation, Sales and Marketing (e.g., the PGA event), vendor restitution - what is permissible?

It is nearly impossible to govern a bailout - and the firms that are in the mess are those that decide how to spend the money. These firms should be allowed to fail - not artificially propped up with taxpayer money.
Tom

United States

#30 Feb 24, 2009
Its good to see that my tax money is being put to use in California instead of here in Illinois.
From IL to FL

Stuart, FL

#31 Feb 24, 2009
Big Picture wrote:
If they really wanted to create jobs and boost national morale they would have sponsored an event in Michigan.
PGA Golf in Michigan during the month of February?
Agree with Good Luck

Winnetka, IL

#32 Feb 24, 2009
Very thoughtful post by Good Luck (#22). I almost posted on TMZ this morning about this being horse-#*#? reporting. Read the full statement from the bank--they didn't want to take the "bail-out" money -- the arm was twisted into it.
So they shouldn't market their services? They shouldn't build relationships with their best customers? While yes, they proably could have toned it down some, marketing drives the sales engine to keep these businesses an on-going concern. They wouldn't do it if there weren't an ROI on the expenditure.
Chris

AOL

#33 Feb 24, 2009
Shameful! Just across the street from them is Harris Bank, which hasn't taken a penny of TARP funds, or any other taxpayer money, and banks like Northern Trust now have an unfair advantage against one of their competitors. If they are taking taxpayer money, they shouldn't be paying any dividends to their investors until every penny of taxpayer dollars are returned to the US treasury.

Northern Trust, and the US government, should be ashamed that they have chosen to put the interest of well healed individuals and institutions over others. That is fundamentally un-American - and no matter what semantic games the government or business like Northern make, this corporate welfare and isn't a "taxpayer investment".
Buster

Chicago, IL

#34 Feb 24, 2009
Bob Dylan wrote:
<quoted text>
Northern Trust is one of the best capitalized banks in the country. They didn't need the governments' money and only took it after being asked multiple times by the government to accept it.
You have no idea what it would take and how much it would cost to back out of the deal with the PGA. You are most likely correct that they should have toned down the entertaining. But think about all those jobs they created in southern california by spending their money there.
Let me guess...spent a little time in SoCal on TARP money lately?
Ex-BallHawk

Naperville, IL

#35 Feb 24, 2009
I dunno about the PGA, but a USGA tournament charges their (volunteer) workers for the opportunity to be in the event. Used to be $150-200 and you got two tee shirts and maybe a chance to drive a Buick to the airport to pick up the millionare golfers or work a score board. So much for job creation.

The main reason anyone hosts these events is so the top brass and their clients can schmooze with the PGA players on the Pro-Am day before the tournament starts. I don't mind that, but the PGA prize money is way too much.

I gotta pay 1.30 cents more to ship a package because FEDEX wants to pay Tiger and Vijay 20 million?



will

United States

#36 Feb 24, 2009
Mosie wrote:
Let's see - if the sponsors, such as Northern Trust, stop paying these huge amounts of money to professional sporting events, the revenue will drop, the tournament will be short on dollars, and the athletes will make much, much less than the millions they do now??? Let them join the ranks of the little people; this is all out of whack anyway.
That, or since they win millions and tax them to death.

The band, Ten Years After, I believe, had a song years ago. Lyrics....."tax the rich to feed the poor..until there are no poor no more".

And that is exactly where we are heading.
Andy

New York, NY

#37 Feb 24, 2009
please banks, once you accept gov't money, never again try to entertain clients. we wouldn't want you to actually try to keep clients happy so you can make actual money ever again. better that you remain troubled and dependent on gov't forever.

or, maybe marketing, even marketing that tmz writers and tribune commenters don't get to enjoy, is a cost of doing business for Northern Trust. If Congress wanted restrictions on how companies operate after accepting TARP funds, they should have imposed them.
Agent Orange

Ashburn, VA

#38 Feb 24, 2009
Thank you "Good Luck" for explaining what Northern Trust is all about.

Obviously Mary from Massapequa is ignorant about how Northern Trust makes money.

Northern's typical client has between $1-10 million in investable assets.
Ticketmaster

Seattle, WA

#39 Feb 24, 2009
The only thing that Barney Frank should be concerned with is that Earth Wind and Fire got paid to do this event! Man, if you're going to use my tax money get some decent bands.
John

Chicago, IL

#40 Feb 24, 2009
So, if this golfing event happened 5 years ago, would be be saying that Northern Trust is using our bankinging accounts to pay for the event?

No, they would be utilizing money from an income account.
Agent Orange

Ashburn, VA

#41 Feb 24, 2009
Chris wrote:
Shameful! Just across the street from them is Harris Bank, which hasn't taken a penny of TARP funds, or any other taxpayer money, and banks like Northern Trust now have an unfair advantage against one of their competitors. If they are taking taxpayer money, they shouldn't be paying any dividends to their investors until every penny of taxpayer dollars are returned to the US treasury.
Northern Trust, and the US government, should be ashamed that they have chosen to put the interest of well healed individuals and institutions over others. That is fundamentally un-American - and no matter what semantic games the government or business like Northern make, this corporate welfare and isn't a "taxpayer investment".
Chris, Harris didn't get TARP money because they are owned by the Bank of Montreal - a Canadian bank. Read a little, ok?

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