Randall Posted February 24, 2009 Share Posted February 24, 2009 This is from TMZ but appears to be true. From the Tribune Are they daring Obama to nationalize the banks or just arrogant and dumb? Northern Trust flew hundreds of clients and employees to L.A. and put many of them up at some of the fanciest and priciest hotels in the city. We're told more than a hundred people were put up at the Beverly Wilshire in Bev Hills, and another hundred stayed at the Loews Santa Monica Beach Hotel. Still more stayed at the Ritz Carlton in Marina Del Rey and others at Casa Del Mar in Santa Monica. Here are the highlights: - Wednesday, Northern Trust hosted a fancy dinner at the Ritz followed by a performance by the group Chicago. - Thursday, Northern Trust rented a private hangar at the Santa Monica Airport for dinner, followed by a performance by Earth, Wind & Fire. - Saturday, Northern Trust had the entire House of Blues in West Hollywood shut down for its private party. We got the menu -- guests dined on seared salmon and petite Angus filet. Dinner was followed by a performance by none other than Sheryl Crow. There was also a fabulous cocktail party at the Loews. And how's this for a nice touch: Female guests at the Chicago concert all got trinkets from ... TIFFANY AND CO. As for what all that costs: Well, the company isn't talking. We spoke with a rep from the band Chicago who said Northern Trust paid them around $100,000. A House of Blues source told us it cost more than $50,000 to close the joint down last Saturday night. As for Sheryl Crow's fee, her rep didn't get back to us. Earth, Wind & Fire acknowledges payment but won't say how much. As for the golf tournament, a rep from the PGA told us Northern Trust wrote one big fat check in order to sponsor the event. That check covers part of the $6.3 million purse, the advertising costs for the spots on CBS (which broadcast the final two rounds of the tournament) and operating costs. The rep says the fee was negotiated and is confidential. Lots of people from Northern Trust went to the golf tourney ... in special Mercedes that shuttled them to and from the hotels. But for those who weren't into golfing, they could spend a few hours at the Northern Trust seminar on the credit crunch. Now how's this for outrage? Northern Trust laid off 450 workers in December, 4% of its workforce. And here's what's absolutely amazing: The United States Government flat out gave Northern Trust the $1.6 billion in bailout money, and the bank didn't even request it! Northern Trust gave us a statement yesterday before going total radio silence. A rep for the bank acknowledges they paid for the events, but that the bailout money did not pay for the events. He claims it was paid out of the bank's operating expenses. Here's Northern Trust's full statement to us. Perhaps we're missing something, but money is money. How can they spend like this when they're using taxpayer's money, whether they asked for it or not? And where the hell is Congress in all of this? Is there any oversight or accountability? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 And here's what's absolutely amazing: The United States Government flat out gave Northern Trust the $1.6 billion in bailout money, and the bank didn't even request it! Why are we giving our money to someone who hasn't even requested it? See this is part of my problem with some of this bail out. Quote Link to comment Share on other sites More sharing options...
TimC Posted February 24, 2009 Share Posted February 24, 2009 Why are we giving our money to someone who hasn't even requested it? See this is part of my problem with some of this bail out. Just steal money for whatever you want...nobody really cares anymore. Right? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Just steal money for whatever you want...nobody really cares anymore. Right? Well, had they asked for the money and then done this, I'd have a real problem with it, though more than likely a great deal of it was already planned, and deposits made. It's almost like the government is saying here take this money, so that we can tell you how to handle your business affairs, and turn the public against you. Quote Link to comment Share on other sites More sharing options...
TimC Posted February 24, 2009 Share Posted February 24, 2009 Socialism....yum yum. Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted February 24, 2009 Share Posted February 24, 2009 I don't really have a huge problem with it. Banks budget for corporate events like this all the time. Its part of how they retain their clients, and has been a part of most marketing budgets for years as a way of saying "thank you" to their employess & clients. The fact that the government gave them $1.6B is a completely separate issue...the fact they didn't ask for it is amazing. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 24, 2009 Share Posted February 24, 2009 If i'm an employee of Northern Trust I might have a problem with it, given they cut the workforce by 4% and then spend money like this in this economy. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 If i'm an employee of Northern Trust I might have a problem with it, given they cut the workforce by 4% and then spend money like this in this economy. Like Swammi said this may be customer retention so that they don't have to cut any more. Plus to have events like that you have to book some of that stuff out six months to a year in advance, and have to pay deposits they would have otherwise had to throw away. Quote Link to comment Share on other sites More sharing options...
T-Scorp Posted February 24, 2009 Share Posted February 24, 2009 Where is the outrage over Obama meeting with the Govenors at a fancy pants party???? Didn't we pay for that at a time when we are in a financial crisis??? Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted February 24, 2009 Share Posted February 24, 2009 If i'm a former employee of Northern Trust I might have a problem with it, fixed the article is embellished to a great degree. Rates at top hotels are very modest, even in LA. The gifts from Tiffany's were likely similar to the trinkets they give out at the Oscars for no charge. The entertainment was likely the costliest of the bunch, but other than that, all other costs were not over-the-top, and as Perch mentioned, the deposits for the acts and House of Blues we likely paid long ago. The incremental cost to get everyone there, accommodated & fed were costs they would ahve incurred at any corporate event. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Where is the outrage over Obama meeting with the Govenors at a fancy pants party???? Didn't we pay for that at a time when we are in a financial crisis??? Didn't I hear that he was getting on Air Force 1 to take another bill out of Washington in order to sign it? Does he need a vacation in order to sign each bill? Quote Link to comment Share on other sites More sharing options...
wiegie Posted February 24, 2009 Share Posted February 24, 2009 Why are we giving our money to someone who hasn't even requested it? See this is part of my problem with some of this bail out. They almost certainly gave money to banks who didn't request it so that it wouldn't be obvious which banks were in trouble (and hence set off a run on those banks). Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 They almost certainly gave money to banks who didn't request it so that it wouldn't be obvious which banks were in trouble (and hence set off a run on those banks). I understand that. I just don't understand how anyone thinks it gives the government or for that matter the tax payer the right to gripe about the way that bank is doing it's business. Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 24, 2009 Share Posted February 24, 2009 Probably because the entire banking system (and yes government complacency and complicity) got us all into this hugh economic mess? Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Probably because the entire banking system (and yes government complacency and complicity) got us all into this hugh economic mess? I agree, but should a company that is supposedly in the black, that basically did the government a favor by going along with their ruse, be criticized for carrying on business in the same manner that apparently has kept them profitable. Quote Link to comment Share on other sites More sharing options...
Pope Flick Posted February 24, 2009 Share Posted February 24, 2009 My understanding is that all banks have to take money in order to avoid the sense that "one bank is safer than another" - at least that was the thinking when they forced the 9 major banks to take money, even as some refused. I'm not sure in this case, but it wouldn't surprise me. Quote Link to comment Share on other sites More sharing options...
TimC Posted February 24, 2009 Share Posted February 24, 2009 They almost certainly gave money to banks who didn't request it so that it wouldn't be obvious which banks were in trouble (and hence set off a run on those banks). So they are lying and deceiving to cover the truth. Yes? No wonder they are penny stocks now. Quote Link to comment Share on other sites More sharing options...
MikesVikes Posted February 24, 2009 Share Posted February 24, 2009 (edited) Here's the new Truth in lending as I see it now explained to me. Edited February 24, 2009 by MikesVikes Quote Link to comment Share on other sites More sharing options...
WaterMan Posted February 24, 2009 Share Posted February 24, 2009 Does he need a vacation in order to sign each bill? I bet he's far behind Bush in vacations. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted February 24, 2009 Share Posted February 24, 2009 Each foreclosure should come with an all expense paid weekend in LA. Quote Link to comment Share on other sites More sharing options...
Perchoutofwater Posted February 24, 2009 Share Posted February 24, 2009 Each foreclosure should come with an all expense paid weekend in LA. I'm guessing since the bank in question didn't need the governments funds that it was responsible when reviewing mortgage applications, and kicked out those that were wanting to borrow more than they could afford. If that is the case the people that made those decisions probably should be rewarded in some way. Quote Link to comment Share on other sites More sharing options...
Clubfoothead Posted February 25, 2009 Share Posted February 25, 2009 I'm guessing since the bank in question didn't need the governments funds that it was responsible when reviewing mortgage applications, and kicked out those that were wanting to borrow more than they could afford. If that is the case the people that made those decisions probably should be rewarded in some way. Of course. Quote Link to comment Share on other sites More sharing options...
muck Posted February 25, 2009 Share Posted February 25, 2009 (edited) Do any of you really have any idea what sort of bank Northern Trust actually is? They are one of the largest investment management firms / custodial banks / transaction processing banks in the country ... their lending is (generally) only ancillary to their investment advisory business. Quoting from their website: ........................... Northern Trust is a global leader in delivering innovative investment management, asset and fund administration, fiduciary and banking solutions to corporations, institutions and affluent individuals. For nearly 120 years, we have evolved with the changing needs of our clients and our world. As of December 31, 2008, Northern Trust Corporation had: $82 billion in banking assets $3.0 trillion in assets under custody $575.5 billion in assets under management ........................... Why do you think those bullet points are the ones they focus on? Because those are the most important points of their business. Northern Trust is nothing like Citibank (et.al.). Without knowing exactly who was in LA, the vast majority of them were probably investment management clients. Related to this is this, which is on Yahoo finance ... shows their three main competitors as FMR Corp (the parent company for Fidelity, the big money management firm), Bank New York Mellon and State Street. What do those firms have in common? Custody of assets and asset management. Not making loans. Feel free to figure out what you're pontificating on and/or getting all bent out of shape about before actually pontificating or getting bent out of shape. Edited February 25, 2009 by muck Quote Link to comment Share on other sites More sharing options...
i_am_the_swammi Posted February 25, 2009 Share Posted February 25, 2009 Do any of you really have any idea what sort of bank Northern Trust actually is? They are one of the largest investment management firms / custodial banks / transaction processing banks in the country ... their lending is (generally) only ancillary to their investment advisory business. Quoting from their website: ........................... Northern Trust is a global leader in delivering innovative investment management, asset and fund administration, fiduciary and banking solutions to corporations, institutions and affluent individuals. For nearly 120 years, we have evolved with the changing needs of our clients and our world. As of December 31, 2008, Northern Trust Corporation had: $82 billion in banking assets $3.0 trillion in assets under custody $575.5 billion in assets under management ........................... Why do you think those bullet points are the ones they focus on? Because those are the most important points of their business. Northern Trust is nothing like Citibank (et.al.). Without knowing exactly who was in LA, the vast majority of them were probably investment management clients. Related to this is this, which is on Yahoo finance ... shows their three main competitors as FMR Corp (the parent company for Fidelity, the big money management firm), Bank New York Mellon and State Street. What do those firms have in common? Custody of assets and asset management. Not making loans. Feel free to figure out what you're pontificating on and/or getting all bent out of shape about before actually pontificating or getting bent out of shape. Yeah, but seared salmon? You've got to admit, that was over the top! Quote Link to comment Share on other sites More sharing options...
CaP'N GRuNGe Posted February 25, 2009 Share Posted February 25, 2009 I don't think the point of the outrage was what type of banking or investment work they are involved in, it was centered around the simple fact that they received taxpayer dollars and seemed to be partying like it's 1999 like others have done and gotten into PR trouble over. It is a good point though that it probably makes a difference if they didn't ask for it. I forwarded this story to a coworker in our treasury dept. He says we have just shy of $2 billion in Northern Trust's hands. Was a bit more before the hugh economic mess we're now in. Quote Link to comment Share on other sites More sharing options...
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