screamThe nerve! Northern Trust, a relatively conservatively managed bank and trust, which had a fantastic 2008 with record profits, had the inglorious idea to sponsor a golf event and additional (admittedly extravagant) festivities. Talking about a public relations disaster (read up on it here).

The media, Barney Frank and other dark knights , tars and feathers at the ready, now want TARP funds repaid and, if possible, heads on silver plates. If not silver, then at least copper plates.

Lessons learned:

- It is irrelevant whether you just had your best year ever or if TARP funds were forced upon you. If you’re a bank, you better cancel all client events that are not hosted by McDonalds.

- It is probably irrelevant whether the total expenditure for client events were unchanged compared to previous years. For example, what if this was Northern’s only annual event for all their biggest clients, compared to several smaller ones for other banks? Still bad? Why, of course.

- It is irrelevant whether these events make you money in the longer run through client retention or new clients that you win.

- It is irrelevant whether these events help keep the battled hotel or convention center industry alive (Keep in mind: one party’s expenditure is another party’s income). Cancel them all. If necessary, Congress will ultimately bail the hospitality industry out (once things get too dire for them).

Northern CEO’s, listen up: next time you better cheat on your tax returns instead of hosting client events. Congress can’t possibly get mad at you over that. They themselves are guilty as sin.