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TMZ Story Forces Bank to Return $1.6 Billion!!!!

3/1/2009 5:04 AM PST BY TMZ STAFF

breaking newsHow's this for action. Northern Trust -- the bank TMZ exposed this week for throwing a series of lavish parties and concerts in L.A. -- is giving back the $1.6 billion in federal bailout money!

We had our cameras out as the bank hosted fancy dinners for hundreds of clients and employees. We had video of the Sheryl Crow concert it threw after closing down the House of Blues. And then there were concerts by Chicago, as well as Earth, Wind & Fire ... and the Tiffany gift bags for the ladies.

The story triggered a furor in D.C. ... Congressman Barney Frank demanded that Northern Trust repay the money it blew.

Outrageously, the bank didn't even ask for the bailout money in the first place. But now, under pressure, Northern Trust CEO Frederick Waddell sent a letter to members of the House Financial Services Committee, saying his bank will repay the government funds "as quickly as prudently possible."

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166.

A Concerned Canadian    

Well it is about time,finally someone has stood up and said ENOUGH already.We have the same problems over here in Canada,with the GOVERNMENT always having their hands in our pockets and the AUTO industry problems..CONGRADULATIONS to TMZ for breaking this story.I love your show it is fricking hilarious,some of the stories are riveting well some are just comical,but keep up the GOOD work all you guys are doing down in LA-LA LAND..A conserned Canadian..

1966 days ago
167.

Get the money back    

TMZ,
Now that the bank wants to pay it back, you can turn your cameras on
the government to find out why they won’t take the money right
away! I read the rules for giving the money back at
http://www.treas.gov/press/releases/reports/CPP-FAQs.pdf and the
bank has to notify the Treasury and the bank regulator who then
“consult” before the bank can pay it back. The rules also state
that the government has not defined what the “consultation” will
encompass. Why are there rules to take it back, and why aren't those
rules already in place?

Barney Frank said he “called their bluff” to tell them to pay the
money spent on the parties back. But there were no rules on paying
back early until February 25th, and even then those rules are still
not complete. C’mon TMZ ask Frank why the government is dragging
their feet on getting our money back!

1965 days ago
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