According to the LA Times, a fraction of the 1.6 billion dollars given as part of the bailout plan to a Chicago-based bank has been wrongfully used.
Northern Trust, who has recently laid off over 450 employees, recieved 1.6 billion dollars as part of President Obama's bailout plan. The money was intended to help the company keep from filing for bankruptcy. Its use was poorly distributed.
This past weekend, Northern Trust funded many extravagent events and accomodations ranging from golf tournaments and fancy hotel bills. The Northern Trust Open was held, and what surrounded the weekend was parties of all sorts and expenses.
More than 100 employees and clients were set up at the Beverly Wilshire in Beverly Hills, another 100 at the Loews Santa Monica Beach Hotel. More stayed at the Ritz Carlton in Marina del Rey, and others camped out at Casa del Mar in Santa Monica.
The House of Blues was reportedly shut down for almost $50,000 for one night to host a party. Sheryl Crowe and Chicago performed during the weekend, Chicago earning $100,000 and Crowe keeping her earnings confidential. Acording to TMZ.com, the PGA Open held cost nearly $6.3 million dollars.
I was shocked to hear about this. I'm glad the media has the access and privelege to announce this huge issue. Not only is our country going through a recession and millions are losing jobs, but people are spending money supposed to help out the country for stuff as ridiculous as mentioned.
I commend the government for finally noticing this chain of events and hope more action and punishment is given to not only Northern Trust, but all places that manipulate everyone. It is unfair to see people being laid off, and the money that the company recieved could possibly be given to those who have lost their job. But instead, corporations think they can get away with these things. I'm grateful the media posted this, for many more people can see and be aware of these issues and know that it's not right.
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That makes me sick! How did they get away with that? Why wasnt anyone there making sure that they spent their money correctly or why wasnt there a plan written up to ensure they would be spending it correctly. I personally think they should have to pay every cent back. Or they should give the money to the people they made jobless.
ReplyDeleteWow. I cannot believe that they used all of that money to fund balls, parties, and leisurely activities while people suffered from recently losing their jobs.
ReplyDeleteDid they get fined for this action? I'd be curious to know.
I remember Obama saying in a speech the other night that no more would a person be able to escape their life by flying on a private jet to a get-away for the weekend, that we're pretty much all in this together, and now reading this, it makes me wonder just how much of it is true.
It's like we're in a vortex. We are spending, and so people get laid off. The people who get laid off can't buy or borrow money, putting us further into debt. Not only that, people aren't saving money anymore, they're overspending and using funds that they don't have.
I wonder what the consequences will be for Northern Trust Bank, if any at all. Maybe the federal government should take action and dictate what needs to be fixed so that errors like this do not repeat themselves.
This is very surprising to hear, considering the fact that we're in a recession right now. People in this country take a lot of things for granted. This money was suppose to be used to help America out but they used the money for their own selfish needs. People's stupidity amazes me out times.
ReplyDeleteThat bothers me that we have a President whom is trying to change the economyy and these selfish companies are still taking it all for granted.
ReplyDeleteMaybe they need to go completely under in order for them to realize that it's hard times and spending money in this less than responsible manner is why the compaany is in the situation they are now.