Barney Frank shows his Ignorance

(CBS) Massachusetts Congressman Barney Frank is demanding that Northern Trust, a bank that received $1.6 million in bailout funds, pay the government back for the money it spent on lavish parties and concerts last week in Los Angeles, according to entertainment Web site TMZ.

Frank, the Chairman of the House Committee on Financial Services, is sending the letter on behalf of the committee, TMZ reports.

Northern Trust sponsored a PGA event, the Northern Trust Open last weekend at the Riviera Country Club in Los Angeles. According to TMZ, the bank flew out hundreds of employees and clients to stay at lavish hotels, and attend parties and concerts with acts like Earth, Wind & Fire, as well as Sheryl Crow.

The bank responded to TMZ’S claims by arguing that 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.”

Northern Trust also said that the bank did not seek the government’s help during the November 2008 Capital Purchase Program when it was issued $1.6 billion in preferred stock and warrants, but agreed to the “government’s goal of gaining the participation of all banks in the United States.” The bank has said that none of the CPP funds are allocated to operating expenses, including marketing and advertising.

Frank told TMZ that the bank should have spent the money making loans and stimulating the economy, and that the Open was an “ego thing” that had nothing to do with good business. - CBS News

Barney Frank is an Idiot to say the least. Details have been slowly leaking out over the last month about the bailout funds that were given to banks. The Government didn't just bail out banks that were in peril, but they gave all banks money in an effort to get more money flowing in the lending market. Now calls like this from ignorant Lawmakers and Media Outlets trying to gain some viewers. These Banks who did not need the money were basically forced to take it, and now are under intense scrutiny to do things the way the Government wants to do things. Obviously with the Deficit Mess the Government has, that is a good thing to do!?

The Government wanted every bank to be influxed with cash to try and get money moving through the economy. Quite Stupid, but that was the plan. It still seems to be the plan. How about putting that money in the hands of Americans? That way money will move. Anyways, after pushing every bank to take on these funds, they now want to decide how business should be run. Again, do we really want businesses running the way the Government runs. Especially Congress.