Bank Draws Heat for Parties After Taking Feds’ Money

Northern Trust bank is drawing scrutiny for having thrown parties in Los Angeles this past weekend, despite having received $1.6 billion in (unsolicited) assistance from the federal government.

According to the Hollywood gossip website TMZ.com, the Chicago-based bank sponsored a golf tournament this past weekend, performances by Sheryl Crown and Earth, Wind & Fire, and rented out rooms in pricey hotels for clients and employees.

Northern Trust participated in the Treasury Department’s Capital Purchase Program (CPP) voluntarily, helping meet the government’s goal of gaining the participation of all major banks in the U.S., Northern Trust said in a statement.

“CPP funds are not allocated to operating expenses, including marketing, advertising, corporate sponsorship or charitable activities,” the bank continued. “Unlike common shareholders, U.S. taxpayers are contractually assured a return on their investment.”

The bank laid off four percent of its workforce this past December.