We never really thought we could say this ... but TMZ just helped enrich America ... to the tune of nearly $1.6 billion.
Remember
our story about Northern Trust -- the bank that took federal bailout money and then hosted a lavish golf tourney in L.A. and catered swanky dinners with live entertainment from
Sheryl Crowe,
Chicago and
Earth, Wind & Fire? And all the ladies got Tiffany gift bags. And we got video of the whole thing....
Well
Barney Frank and other members of Congress were so pissed, Northern Trust agreed to return the money. We checked every week to see if the money was returned ... nothing. Until a few weeks ago!
Northern Trust has returned $1,576,000,000 -- that's $1.576 billion returned to the government.
You're welcome.
Happy birthday to 69-year-old
Barney Frank. The congressman from Eastern Massachusetts will have a "nice, private dinner" with his boyfriend tonight. As for gifts, the Chairman of the House Committee on Financial Services reminded us of that pesky federal law ...
We think we like this Barney even more than the dinosaur!
How'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."
TMZ just obtained
this letter that Congressman Barney Frank wrote to the president of Northern Trust:
Congressman
Barney Frank just told TMZ he is sending a letter to Northern Trust, demanding that the bank pay the government the equivalent of what it spent last week on
lavish parties and concerts in L.A.
Frank, Chairman of the House Committee on Financial Services, is sending the letter on behalf of the Committee.
Frank is also asking Northern Trust to return the $1.6 billion in bailout money to the government. Northern Trust didn't ask for the money when Former Treasury Secretary Henry Paulson doled it out. The new law actually allows banks that didn't need the money to return it.
Frank also scoffed at the boondoggle, saying
Northern Trust should have spent that money making loans and stimulating the economy. He called the Northern Trust Open an "ego thing" that has nothing to do with good business.
Senator John Kerry also weighed in on TMZ's story, calling Northern Trust's L.A. extravaganza "disgusting and stupid
and pathetic."
UPDATE: Congressman Brad Sherman said, "Wall Street is laughing at us saying, 'we got to keep your money and our lifestyle is unchanged.'"
Senator Sherrod Brown said, "A lot of banks seem to be talking out of both sides of their mouths. When we ask what they are doing with taxpayer funds, they claim it's impossible to track the money because it is fungible. But when it comes to paying for parties, all of a sudden an enormous wall divides the TARP money from everything else. They cannot have it both ways."
See what other congresspeople have to say... after the jump.
The Congressman from Massachusetts only had one piece of advice for the stars who can't get their grubby little mitts on a ticket to the Obama inauguration ... "run for Congress!"
Maybe Scarlett Johansson can score an extra ticket from Roland Burris.
