Caught on Tape: Bank Parties On After Bailout

"This type of spending is outrageous and disgraceful. The government did not hand over $1.6 billion for Northern Trust to go off partying or give away taxpayer-subsidized trinkets from Tiffany's," said Rep. Elijah Cummings (D-Md.) who sits on the House oversight committee.

"This is money that should be used to expand lending or pay the salaries of the hundreds of employees that the company recently laid off," said Rep. Cummings.

Northern Trust says it is using the bailout money to support lending and that the expenses for the golf weekend came from their operating expenses, which do not include the federal funds.

"The CPP [Capital Purchase Program] capital is also supporting high quality loan growth, benefitting clients and institutions. As of December 31, 2008, our loans and leases totaled $30.8 billion, a 21% increase from 12/31/07 and a 3% increase from 9/30/08," said Holt.

Critics Say Bank Could Have Cut the Costs of the Event

Northern Trust did not reply to ABC News' inquiries about the cost of the performances nor about the costs of the accommodations for Northern Trust's clients and executives. A spokesperson did issue a statement saying the bank signed a five year contract to host the golf open in the fall of 2007, a year before the bank accepted federal funds, but made no comment on when the concert commitments were made. (Click here to read Northern Trust's full statement)

Critics say even if the bank has contractual obligations, money could have been saved by canceling concerts or staying in budget accommodations.

"That's really the issue more than prior commitments," said Schatz. "You can cancel a concert."

"You've recently fired 450 employees," said Schatz, "so this certainly isn't great for the morale of other employees or for the morale of taxpayers."

Click Here for the Investigative Homepage.

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