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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."

230 COMMENTS

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31.

AnnaBelle    

Great work TMZ. Now if you can just handle everything for the goverment and these other idiots who scam people we might get this economy back in shape. People might get their life's savings/investments back too if you expose and pressure the lowlifes in America.
You can't tell me that all the performers knew nothing of this bank getting bailout money. That's the first question I would have asked before I took the gig with a bank but then I'm well aware of the economy and how people are suffering. I'm not a rich singer and could care less. I will never listen to or buy the music produced by these people.

2063 days ago
32.

dege    

So many of you who are saying that the bank had the right to do this partying with "their money" are really missing the more important point that most news sources are not highlighting:

The bank ls laying off 450 people yet has millions to spend on partying for the upper mangement and executives.
They should be forced to keep those people employed with the party funds. This is the real shame on this story, not the bailout money.

2063 days ago
33.

chris    

Well done TMZ. Now go do some more good journalism.

2063 days ago
34.

Choppy McButtstink    

Since the bank never asked for the money to begin with and can repay it at will, why does anyone care how they spend their own money? There are quite a few banks who had money forced on them even though they did not need it or want it. The only people who should care or have a say in how these banks spend their money are the shareholders.

Great job exposing nothing TMZ.

2063 days ago
35.

Kristina    

I hope they really give back all the money that the government gave them as part of the bailout. It looks like they are doing well, to be able to have these parties, so they should not need tax payers money. Idiots instead of laying off employees, they should have kept them on and paid them with all the money they spent on the lavish parties and gifts.

2063 days ago
36.

whome    

Nice job TMZ! A picture is worth $1.6 billion bucks!

2063 days ago
37.

chie    

GOOD!!!! I am sick and tired of corporations taking advantage of the system. They should have to pay that money back with interest. They forget that they have family and children and grandchildren who also pay taxes and so this is their money too, MORONS!!!

2063 days ago
38.

Laughing on the Inside    

Hey TMZ. Your real story might be why the government forced banks like Northern Trust to take the bailout money. Might want to look into that one. If we coerce them into taking the money, then we can control them and how they do business. Do you really want Barney Frank managing the financial system in this country? NO!!

2063 days ago
39.

Limerick    

Way to go TMZ

2063 days ago
40.

share    

Now TMZ gets the job done!

2063 days ago
41.

kchick4u    

yaaaaay good 4 frank and tmz

2063 days ago
42.

Julia    

thank you TMZ

2063 days ago
43.

Guildish    

This was a terrific thing you did in publicly calling them out on their excesses. However, if you read the banks full statements they only state they will TRY to repay the loan as soon as they can. This sounds more like a publicity stunt on their part to take the heat off with the hope that everyone will forget about them and they will never repay the bailout funds. I hope you will consider staying with this story to make sure they follow through. Thank you again.

2063 days ago
44.

jolicious    

AND WHO SAID TMZ IS ALL ABOUT CELBRITY GOSSIP...AND DRAMA...THATA WHAT I CALL STICKING IT TO DA MAN...GOOD JOB GUYS...

2063 days ago
45.

Victoria    

If TMZ had gone there to EXPOSE Northern Trust - that would have given them "bragging rights" & then they would get my congratulations & kudos for a job well done....... ...but TMZ was there for one thing and one thing only .... to get photo's of celebrities.

2063 days ago
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