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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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106.

Curly    

BRAVO TMZ!!! Great job!! Keep up the good work. Maybe you should start monitoring more of the recipients of our tax dollars!!

1961 days ago
107.

Elle    

I THINK YOU HAVE FOUND YOUR CALLING, MUCH BETTER THAN STALKING CELEBS! THIS IS GREAT NEWS, CONGRATS ON A JOB WELL DONE!

1961 days ago
108.

Proud American    

Good job TMZ!!

1961 days ago
109.

OClady    

WHY IS THIS THE ONLY SITE THAT IS TALKING ABOUT THIS??? NOT ON CNN OR FOXNEWS OR ANYWHERE ELSE?

1961 days ago
110.

sail2maui    

THANK YOU !!!!!!!!!! TMZ FOR GETTING THEM TO DO THE RIGHT THING !!! Keep it up and try to make more of the banks to do the same.... and just do the right thing................

1961 days ago
111.

C.P.    

Excellent Job TMZ!!

1961 days ago
112.

YA YA    

You are my hero TMZ..........................

1961 days ago
113.

Just Me    

#13: The money the bank has DOES NOT belong to the bank. Where do you think they got it from? The depositors. That's you and me. And the money the gov't. gave them? Yep, you got it. Yours and my tax money. So the money the bank (and the gov't.) has and spends is yours, not theirs. Therefore it IS our business what they do with it.
My question is, according to the story, Northern Trust Bank didn't ask for nor did they want the gov't. bail out money but, and I quote, " 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."
If they didn't need the money, why isn't it available now for repayment? I guess one must guess they used the money for something, and therefore it isn't readily available for repayment right? Wonder where it disappeared to so fast?
Any answers from Northern Trust Bank?

1961 days ago
114.

YA YA    

# 13 You don't know what you are talking about. GO BACK TO SCHOOL.

TMZ we all all proud of what you did.

Keep up the good work.

1961 days ago
115.

Rachel    

good job.

1961 days ago
116.

James    

Will California give back the taxes they recieved,? will the maids give back the tips?, how about the lavish hotels, will they give it back ? will the pilots and crews that flew hundreds to L.A. give thier money back? will the roadies give up the money they made ? I hope they all brought sack lunches. i would hate to think about those Double rich restuarents making any money. remember if you will those lavish Mercedes shuttles had drivers, I only hope they give back the money.

I hope the L.A open can't find a sponser next year, maybe that would make the short sighted, small thinking Barney kind happy.

1961 days ago
117.

dazzling d.    

You go TMZ no wonder I love reading your site. Stay on top of them ; you did a great job! it should be more people keeping an eye on these crooks.

1961 days ago
118.

Mplschick    

Great job TMZ!

1961 days ago
119.

FLTom    

TMZ ownership and staff and most of the readership EMBARRASSED themselves by the attack on Northern Trust, a company whose completely justifiable marketing efforts were absurdly portrayed as evil. Do any of you business geniuses have any clue how much further our economy would collapse if companies discontinued ad and marketing campaigns en masse? Northern Trust's cave in demonstrates the perverse power of media to rabble rouse the uninformed and bully victims into unwise decisions out of panic. What a farce this whole thing has been.

1961 days ago
120.

Hello Kity Girl    

Hey, the bank was only trying to stimulate the economy by keeping those poor hotel workers, caterers, rock stars, waiters, etc employed... :-)

1961 days ago
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