CHICAGO, Feb. 27 (UPI) -- Northern Trust Corp. proposes to repay bailout funds to the U.S. government after negative publicity about its sponsorship of a golf tournament in California.
U.S. Rep. Barney Frank, D-Mass., asked the company this week to return bailout funds equivalent to the amount it spent to sponsor the PGA Northern Trust Open in Los Angeles last weekend. Frank, chairman of the House Financial Services Committee, said "we insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events."
The golf tournament featured events including performances by Sheryl Crow and Earth, Wind & Fire.
In a letter to Frank Friday, Northern Chief Executive Officer Frederick H. Waddell said the bank was consulting with regulators "with the goal of repaying" $1.6 billion in bailout funds. Waddell noted in the letter to Frank that Northern Trust, based in Chicago, reported net income of $795 million in 2008, up 9 percent from 2007, Crain's Chicago Business reported Friday.
Northern Trust would be the first bank to return bailout funds it had received, Crain's said.
"We understand this is a time of great anxiety and financial distress, and your question regarding our support of an event such as the Northern Trust Open is legitimate," Waddell wrote to Frank. "We deeply regret that some of the events associated with the Northern Trust Open have distracted from the positive nature of an event that has raised more than $50 million for charity since its inception."
