George S. May Business Blog

Northern Trust would like to thank you for paying for their Sheryl Crow concert

Northern Trust Corp is finding itself in the news as the latest swindler of the American public’s tax dollars. Northern Trust Corp, a Chicago- based custody bank accepted $1.6 billion in U.S. bailout money and now is being criticized by a government watchdog group for lavishly spending on employees and clients at a company-sponsored golf tournament.

Northern Trust received TARP money in October. Now, not four months later, the bank sponsored the Northern Trust Open, a PGA Tour event outside Los Angeles from Feb. 19 through Feb. 22. Over the three days the company, reportedly, hosted parties and concerts that included performances by Sheryl Crow and the band Chicago.

 ”It’s the controllable part of the event, the royal treatment of employees and clients, that shows once again that banks aren’t fully aware of how taxpayers feel about events like this,” Thomas Schatz, president of Washington-based Citizens Against Government Waste, said today in an interview.

Or maybe they just don’t care.

John O’Connell, a spokesman for Northern Trust, said in an email: “The Northern Trust Open is an integral part of Northern Trust’s global marketing activities, focusing on retaining and growing business with existing clients, and attracting new clients”. O’Connell declined to provide details of what the company spent on the events.

Apparently, 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. Reports tell that over 100 people were put up at the Beverly Wilshire in Beverly 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, all reportedly on Northern Trust’s tab.

From what I have read, it is not so much the actual golf tournament that upset CAGW, it was more the festivities off-the-course events that caused a rise.

From TMZ.com, here is the rundown of events:

“- 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.”

Wow. So let me get this straight.

In October Northern Trust took $1.6 billion from the government.

In December they laid off 450 people.

In February they spent upwards of $6 million on party?
How’s that for a kick in the face; to both the former employees of Northern Trust laid off in December and American tax-payers as a whole.
Northern Trust has successfully placed another notch on the belt of Congress’ carelessness when it comes to the hand-out/oversight of TARP funds.

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