US- Chicago-based Northern Trust has said it is working to quickly pay back the US$1.5bn it received under the Troubled Asset Relief Program (TARP) after it was chastised by lawmakers for spending on a golf tournament sponsorship.
Waddell said the TARP funds were not used to sponsor the Northern Trust Open and the sponsorship would have occurred regardless of whether or not the firm received the funds and pointed out that the event has raised more than $50m for charity since inception.
Waddell was responding to a scathing letter written by Frank on 24 February accusing the firm of "irresponsibility and arrogance."
Frank said: "We are dismayed and angered to learn that Northern Trust recently spent millions of dollars on a PGA golf tournament sponsorship and associated parties at the same time it has taken over $1.5bn in federal stabilization funding under the Troubled Asset Relief Program."
Frank's letter cited media reports that claimed northern had spent million on not only sponsoring the golf tournament, but hosting lavish parties and offering Tiffany souvenirs.
Frank continued: "If this is accurate, we are demanding you take corrective action…We insist that you immediately return to the federal government the equivalent of what Northern Trust frittered away on these lavish events."
The firm plans to repay the entire amount it received under the TARP program, confirmed spokesman Doug Holt.
Northern trust has spent a portion of the TARP funds to offer loans to individual and institutional clients, with a 21% increase in loans in leases during 2008, Waddell wrote.
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