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Bailout Bank Blows Millions Partying in L.A.

2/24/2009 3:30 PM PST BY TMZ STAFF

A bank that received $1.6 billion in bailout money just spent a fortune last week in L.A. hosting a series of lavish parties and concerts with famous singers ... and TMZ cameras caught it all.

Bail out Bank]

Northern Trust, a Chicago-based bank, sponsored the Northern Trust Open at the Riviera Country Club in L.A. We're told Northern Trust paid millions to sponsor the PGA event which ended Sunday, but what happened off the golf course is even more shocking.

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:

Sheryl Crow: Play videoPlay video

- 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.

Tiffany Gift Bag
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.

Now how's this for outrage? Northern Trust laid off 450 workers in December, 4% of its workforce.

And here's what's absolutely amazing: The United States Government flat out gave Northern Trust the $1.6 billion in bailout money, and the bank didn't even request it!

Northern Trust gave us a statement yesterday before going total radio silence. A rep for the bank acknowledges they paid for the events, but that the bailout money did not pay for the events. He claims it was paid out of the bank's operating expenses. Here's Northern Trust's full statement to us.

Perhaps we're missing something, but money is money. How can they spend like this when they're using taxpayer's money, whether they asked for it or not? And where the hell is Congress in all of this? Is there any oversight or accountability?

Your tax dollars, hard at work. Thomas Jefferson was right -- "A little rebellion, now and then, is a good thing."

285 COMMENTS

No Avatar
91.

cindy    

Not surprised. Not accountability for ANYONE anyone, Not the banks, wall street, nothing. Not even the lazy ass people who dont work for a living, but we get to pay our neighbors mortgages too. What a government we have now, reward the greedy & lazy AND punish the worker bees who played by rules. Well, obama supporters wanted change, HERE IT COMES!!!

Pelosi is a DISGUSTING depiction of our goevernment today & Obama, well, in Washington now there is the PERFECT STORM and we are all going to get swept away...

TIME FOR THE TEA PARTIES & remember in 2010 GET THESE FREAKS OUT OF THE SENATE & change the playing field!!! Welcome to RUSSIA, American Style!

1966 days ago
92.

who has the facts? ME    

That money was distributed during the Bush administration, they were the ones that handed over money to banks with no accountability...
Let's hope that the new administration will be vigilant about cleaning up the incredible amount of doody left by the previous administration. For anyone to blame Obama, after 30 days, is silly. It should not be surprising, though. They are still trying to blame Clinton for 8 years of Bush disasters. They are always the victims of the democrats...

1966 days ago
93.

KDUBBLL    

Anybody who voted Northern Trust is to blame is truly ignorant and in need of a wake up call.

1966 days ago
94.

Anon    

Did anyone bother to read the statement issued by Northern Trust. This was part of a 5 year contractual obligation. This bank employs thousands of people. At least they're still in business.

1966 days ago
95.

KATHY =( ^-^ )=    

LIBERAL DEMOCRATS SPEND SPEND SPEND....AND THE JOKE IS ON YOU LIBERALS THAT DIDN'T SEE THIS COMING!!!!!!! I DID BECAUSE I AM NOT A LIBERAL OR A DEMOCRAT.....AND THE OCTO MOM IS WAITING IN LINE TO GET HER SHARE... NEXT YOU'LL SEE HER UGLY EVIL MUG ON THE RED CARPET NEXT YEAR CAUSE EVERYTHING IS BACKWARDS IN THIS UNIVERSE.....YOU GUYS GET WHAT YOU DESERVE ....I JUST HAVE TO SIT BACK AND WATCH ROME BURN.. ENJOY YOU EMPTY POCKETS

1966 days ago
96.

csd86    

this is nuts its both there fault, think about it

1966 days ago
97.

yourekiddingright    

WHERE THE HELL DO I APPLY FOR A JOB WITH THEM?! I want on this gravy boat too, my back is sore from working myself to death while these people live and play in the lap of luxury, and my ASS is sore from getting fkd by them while they do it!

1966 days ago
98.

Patty    

Complete Bull Sh*t!!!!

1966 days ago
99.

Bex    

KATHY, um, your pockets will be empty, too. You think only the dems are gonna pay? Get a grip on reality.

1966 days ago
100.

sarge1    

#25 FOR PRESIDENT!!!!

1966 days ago
101.

Filipina_Nurse    

Good Morning to all Democrats !!!! So did your OBAMA? Gave 1.6B to this bank wihout being asked for a BAILOUT? Ohhhhh.... Yes They Can !!!!!

1966 days ago
102.

GCanada    

Wow.

I'm not even an American and this pisses me off. I think what the U.S. financial sector obviously needs is angry torch and pitchfork-carrying mobs to burst through their respective doors and start making examples of these morons.

Unbelievable - banks won't lend money out, but the higher ups have no problem giving away cash to maintain their lavish lifestyle, even though the money wasn't even theirs in the first place!

I think I just felt the gap between the rich and poor get a little bigger.

1966 days ago
103.

Ooooo Noooo!    

Northern Trust -- Chicago bank. And you folks are surprised? Welcome to Illinois politics! Strap in for 4-years of total corruption! They got money they didn't even ask for -- trust me -- BIG political campaign contribution coming Obama's way for reelection. This is just the begining!

1966 days ago
104.

Bash a Pap    

HAHAHAHAHA! YOU IDIOTS.... THE BANK BAILOUT HAPPENED UNDER BUSH AND NOT OBAMA! READ A NEWSPAPER AND NOT JUST TMZ!!

1966 days ago
105.

Bex    

I love Tom Cruise and and i hate Jett ski's!!!!


We wouldn't be in this mess if Clinton had dealt with terrorism on his watch!!!

1966 days ago
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