Frank Demands Bank Give Bailout Funds Back

Massachusetts Congressman Barney Frank is demanding that Northern Trust, a bank that received $1.6 million in bailout funds, pay the government back for the money it spent on lavish parties and concerts last week in Los Angeles, according to entertainment Web site TMZ.

Frank, the Chairman of the House Committee on Financial Services, is sending the letter on behalf of the committee, TMZ reports.

Northern Trust sponsored a PGA event, the Northern Trust Open last weekend at the Riviera Country Club in Los Angeles. According to TMZ, the bank flew out hundreds of employees and clients to stay at lavish hotels, and attend parties and concerts with acts like Earth, Wind & Fire, as well as Sheryl Crow.

The bank responded to TMZ'S claims by arguing that the Northern Trust Open is "an integral part of Northern Trust's global marketing activities, focusing on retaining and growing business with existing clients and attracting new clients."

Northern Trust also said that the bank did not seek the government's help during the November 2008 Capital Purchase Program when it was issued $1.6 billion in preferred stock and warrants, but agreed to the "government's goal of gaining the participation of all banks in the United States." The bank has said that none of the CPP funds are allocated to operating expenses, including marketing and advertising.

Frank told TMZ that the bank should have spent the money making loans and stimulating the economy, and that the Open was an "ego thing" that had nothing to do with good business.

[slmjkk]

Barnie Frank is a joke. Give back the money great idea. If every company gave up marketing thet would all go bust. It's one of the most important things any business spends money on. Barney helped create this mess why does he get a free pass on this.

[warbman]

This demand is too little too late. It is time to become civilly disobedient. We have waited patiently for almost two years for justice. Nada. We will never see justice while the elites are safe from any form of justice.

Americans are now the innocent victims of a war waged by CEOs on the public. The only option left is to wage open war on CEOs. We can do that by committing any form of sabotage on the executives. It is the only way to fight back.

I suggest goggling for a virus builder and arming yourselves with weapons to attack these CEOs. Other forms of sabotage are welcome.

[cplaw]

If a bank was solvent when it was asked to take the federal money (as Northern Trust was) and if Northern Trust was allocating the federal money for appropriate use (which the facts show it was) What gives anyone the right to tell them what to do with separate, previously allocated promotional funds? Is this the Soviet Union or something?

Barney should think before he talks.

[jkelley761]

Yea, you are all fools, this is the great American con game. they are all involved ( government and business). while they are arguing and fighting at day for our benefit in front of the cameras and press, they meet at night, to laugh at all of us for our stupidity and ignorance. It's all a show for our benefit, believe me.
When will we start the revolution that will stop all this? never.
We would rather sit, watch these ignorant and stupid sitcoms, eat our fill (which makes us to content, lazy and fat to do any thing about it) That's why it does not affect too many of us to start the revolution that could set it all right.
Socialism is the word the rich and powerful dread. What it really means, if done right, is all of us, caring for all of us.
Don't be too afraid, it was what started this country of ours, neighbors caring and helping neighbors.
the rich, powerful and intelligent have got us all figured out. Slavery never ended, it expanded to include everyone, regardless of religion, color or social background.
We are all basically f****d. And ain't nothing going to change that now until we are all really ready to sacrifie.
IT'S TIME FOR FRENCH REVOLUTION...AMERICAN STYLE.
and if you are not ready.... then shut the f**k up, accept it and quit complaining.

[hdc77494]

The only thing that's going to turn the economy around is spending money. The bank sponsers a golf tournament. Of course they are going to spend money to capitalize on the event. They'd be stupid if they didn't. If the banks stop spending money, the US Government won't get their money back because the banks won't make any profits. Stop spending, lay off everyone? great ideas morons.

[Jared_B]

How refreshing it would be if some of the mouthbreathers would do their homework before they comment. (This would include CBS). Northern Trust never asked for the "bailout" funds. They were virtually told to take them in order to provide anonymity to the floundering banks, and protect stock values. Northern Trust posted profits of 640 million last year, and should do whatever the h*ll they want with their money, including wining and dining their incredibly rich clientele. It is a sad day when a successful business is forced by government to accept bailouts it didn't ask for, then told they can't operate in the manner that made them thrive in the first place. It's even sadder that CBS won't even COME CLOSE to telling you the whole story.

[sondra2009]

To punkinpie1: Barney Frank marched by the beat of his own drum alright, right to the bank to collect all the money rewarded to him by the banks he was supposed to be monitoring. He was never for the American people. He was for himself and still is. He was just awarded $12,000,000 from Fannie Mae from our bailout money that was sent to them. That was another one of his kickbacks from them. He's for the American people alright..................get a life!

[punkinpie1]

Frank is condescending? You got to be kinding? If anybody who was condescending it
was G. W. Bush. How many time did cowtoe to the special interest groups? How many
times did he catered to the upper 10% income people. All I've seen in the years I've
looked and studied Congressman Frank he always seemed to march by the beat of his
own drum. He always seemed to be more for the common people of the country. I just
don't see what everybody else sees. Please explain how you see where he
condescends to special interests.

[punkinpie1]

Well I feel that almost all the banks should pay back the money. It boils down to what
the banks have done is to be construed as criminal. I know that Bank of America and
Chase both do some loan sharking practices. I feel they should pay back the money
they conned congress out of. They should never get bonuses when there are too many
people who don't even have a job to rely on. Shame on all of Washington as well as
Wall Street!!!

[unijuglr]

This is an awesome story... Yeah!!!