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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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61.

theroyalgs    

FINALLY TMZ DOING SOMETHING WORTHWHILE!!! GIVE US MORE LIKE THIS!!!!!

2034 days ago
62.

jc    

TO: DoctorWu

"THE MONEY THE BANK OWNS BELONGS TO THE BANK- NOT TO YOU, AND NOT TO THE GOVERNMENT AND ITS NOT OF YOUR G-DAMN BUSINESS WHAT THE HELL THEY DO WITH THEIR MONEY!

are you freaking retarded? where do you think the government got the money they gave to the bank? OUR TAXES!

it sure as heck is my business.

and everyone who thinks the bank shouldn't have thrown the party is right. when people are starving and in the streets, to do that is unconscionable, where's the compassion? UNITED we stand, RETARD.

if we don't take care of each other, we're screwed. that money could have helped many people save their homes, THAT's WHAT THEY SHOULD HAVE BEEN THINKING ABOUT.

and to DoctorWu ... if this country goes down because banks are our spending OUR money, in the end, they will go down too. and so will you!

WAY TO GO TMZ!!!



Posted at 10:24AM on Feb 28th 2009 by DoctorWu

2034 days ago
63.

Kerry    

Good job TMZ! Now if we can get Sheryl Crow and the other performers to return the money they got paid! Sheryl Crow is such a hypocrite. One minute she tells us to use "one square of toilet paper" then the next minute she does this? Typical Hollywood. DO AS I SAY, NOT AS I DO.

2034 days ago
64.

bassett1356    

Great job!!! Good for you!!! Keep it up!!!

2034 days ago
65.

gabriela    

Good for you guys!!!! That's why I like you the best!!!!

2034 days ago
66.

cindy    

Good for you TMZ...for exposing stories we wouldn't know nothing about. How dare they do that? What is wrong with the freaking goverment. Our economy is falling apart, millions of americans without jobs and there they go giving money to a bank that didn't even ask for it AND on top of that the bank uses the money for entertainment purposes!!!!! That is why, someone needs to realize that OUR money, taxpayers money is being wasted and spend in a way that is only hurting us more. The american people paid for that party! We are the ones now that are going to endure increase in taxes as to try and repair the damaged goverment that has no money because they chose to spend it unwisely!! Thanks to TMZ for exposing the truth and because of them the bank now, out of shame is going to pay back that bailout money. I am glad, the money should not have been given to them in the first place !!!!!

2034 days ago
67.

Kellikels2    

Good , now they can go back to running their company & pumping money into the ecomony any way they see fit and it's nobodys business. I wish more banks would do that and let the deadbeat people who did not pay their loans back fall on their rear ends. I highly doubt Tmz's story frightened this bank into giving the money they never wanted or spent back. If it, the story contributed at all it was to shame the democrate run congress who wrote & passed the stimulus bill that forced this bank to take the money into taking the money back.

2034 days ago
68.

dbunnies    

I'm just so shocked that no one is thinking about the people who worked these jobs. Thank goodness they threw these parties! With all the lay offs that are going on, I don't think the people getting paid to work these parties is blaming northern trust or any bank for anything. I'm sure none of you have ever worked a catering job or eaten at a restaurant because you'd know how well paid and how huge the profit margins are--NOT.

Because of TMZ, Morgan Stanley won't send anyone to the pga game that bears their name? they won't throw any parties? come on. you just ruined a good group of working people. I'm sure catering companies were already booked and partially paid for all parties planned. I'm sure little valet companies and drivers were scheduled to work. I'm sure TMZ would really love it if there were no more parties but this is ridiculous to think that the money spent was wasted.

Why don't you get mad at hollywood for throwing extravagant awards ceremonies and parties? why don't you get mad at the celebrities who get free dresses but dozens of designers are closing shop because they can't get anymore loans? stop being such selectively bleeding hearts.

2034 days ago
69.

dbunnies    

RE: 59. it was the republican government that forced them to take the money. this was under the first bailout from paulson.

2034 days ago
70.

Annie    

Thank you TMZ for bringing this to light. It's good to see that you guys are exposing & reporting this! You've guys just redeemed yourselves BIG time after all those "looking _____ (honest, deliberate)" articles that had me wondering if you had high school students as journalists.

2034 days ago
71.

LOLA    

Northern Trust is laying people off currently in the United States. More employees were laid off in the USA this week. READ the statement, NT does not say when they will... just 'quickly" than could be years!!! TMZ do more research!!! Theres a HUGE story yet to come! Look at cnn.com and see how much stock these top brass awarded themselves on Feb 16, 2009. MILLIONS!

2034 days ago
72.

I Will Take Being Born White Any Day - Thats Worth Much More To Me, #6    

"As quickly as prudently possible." Translation: "When we damn well feel like it."

2034 days ago
73.

sarah    

I am thankful for the internet, and for sites like this one, I appecite your work TMZ!!! I have noticed some of these news just dont air much on t.v. THank you for keeping us informed! From politics to all these celebrities.!!!

2034 days ago
74.

Just    

WAY TO GO TMZ !!!!!!!!!!!

I really enjoy your site, but this has been by far the best use of your cameras so far. i LOVED IT!!!

KEEP IT UP !!

2034 days ago
75.

Gary    

The people should do a little arithmetic and roughly calculate just how many times they have multiplied this financial hogwallow scenario across the country. The madness of throwing this astronomical amount of money at these fat, wealthy and greedy execs and money managers is just beginning to dawn on the people a little bit, and thanks, TMZ, for the exposé.

2034 days ago
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