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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
121.

Lord Xenu    

The Democrats are running the show now, blame them. Will they take the money back? Nope. The banks were huge contributors to Democrats in 2008 - they are simply getting what they paid for - crooked Chicago style politicians.

Goldman Sach's gave nearly $1 million to Obama's campaign. What did they get in return? $12 BILLION in connection with AIG courtesy of Tim Geithner - Obama's Treasury Secretary and head of the I R S. Then Goldman SUCKS handed out $14 BILLION in bonuses to rub it in. The Democratic Congress was more than happy to supply the funds. Government corruption is truly bi-partisan.

Id say thats a pretty hefty "return on investment".

2065 days ago
122.

Nikki    

#14 Are you for real. John McCain supported the bailout idiot! Don't you remember him dramatically putting his campaign "on hold" for the week to fly to Washington and personally fix this all up and get the bail-out through? Yes this company should have the money taken backa nd get a public lashing, but don't act like McCain did not support the bail-out.

2065 days ago
123.

Star    

This was very irresponsible on behalf of Northern Trust... but I don't understand why Congress gave them bailout money if they did not ask for it? So now they're just giving out money to anyone? I thought bailout money was to be given to banks & companies that needed it... not just a free handout to anyone!!

2065 days ago
124.

Quit ur bitchin'    

Re: 'toofastforyou!' -----> 'WHAT HAVE I DONE BUT BE BLAZING FAST TO OUT DISTANCE THE REST OF THE PACK & NOW YOU HAVE PUT ME ON THIS 5 minute delay....your ruining my repertation!!! I AM THE FASTED!!!'

_______________________

Yo 'toofastforyou!' .....

You really need to grab a life if your only concern/ambition in life is to be first on these posts!! Think about it......don't you have anything better to do???

Yo momma must be so proud that you strive for such perfectionism!!!

GRAB A LIFE!!!!!

2065 days ago
125.

The REAL DEAL    

Although this seems wrong on many levels - we all are failing to understand that if we stop all activities that we are not part of the economy will fail even quicker. There are countless jobs and industires that are dependant on these activities and the spending of those with money. If we stop all of this out of some misplaced anger then we will force more thousands out of jobs and the economy will suffer greater. I hate what is happening, I lost my job, but I cannot fault every action out of my anger. Think about it . . . .

2065 days ago
126.

Fan Since 2007!!!    



YOO ESS ESS AYY!!!
YOO ESS ESS AYY!!!
YOO ESS ESS AYY!!!

U...S...S...A..!!!

2065 days ago
127.

MrsPete    

Any lady having to listen to the band Chicago IS OWED something from Tiffany.

2065 days ago
128.

jeezlouise    

Outrageous. This is EXACTLY the kind of behavior Obama said will no longer be tolerated under his administration. I know this bank money was distributed under Bush but I hope Obama calls them on the carpet and GETS OUR MONEY BACK from these jerks.

Posted at 12:41AM on Feb 24th 2009 by ljh

Hey Idiot- Your great savior Nobama is right there with the rest spending like a drunken sailor- Get over your hero worship- hes a fraud too.

2065 days ago
129.

David    

So how much money was spent in D.C. for Barack Obama's parties! I think the tax payers should demand their money back too!!!!

2065 days ago
130.

Peep    

Gotta love Northern Trust's attempt at justification and bringing the race card into it no less! Unbelievable.

2065 days ago
131.

918    

You can't defend it but it is it ever possible these funds have been set aside for this very purpose well before they got bailout money?

2065 days ago
132.

What do you look like?    

It doesn't surprise me that the Republicans are now blaming the Democrats for the financial crisis. They are trying to divert attention away from their 8 years of incompetence and catering to the oil companies and their Wall Street buddies.

2065 days ago
133.

.....    

I wonder how much money obama will gift to Hollywood? After all, thats who got him elceted.

2065 days ago
134.

.....    

elected

2065 days ago
135.

REV.MARK-ANTHONY TORRES    

HARVEY 9:21AM 02/24/09
THANK YOU THANK YOU FOR BEING YOU & TMZ, GREAT WORK!PLEASE KEEP ON DUDE!!!!
(OK I WAS ACTING LIKE MAX-SURF 0DUDE)LOL!
REV.MARK-ANTHONY TORRES
LONG BEACH,CA.90801-3242

2065 days ago
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