[Congressional Record Volume 155, Number 32 (Tuesday, February 24, 2009)]
[Senate]
[Page S2429]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. KERRY:
  S. 463. A bill to impose limitations on certain expenditures by 
participants in the Troubled Asset Relief Program; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. KERRY. Mr. President, today I am introducing the TARP Taxpayer 
Protection and Corporate Responsibility Act of 2009. Recently, it was 
reported that the Northern Trust Corporation threw lavish events in 
conjunction with the Northern Trust Open. Last year, Northern Trust 
Company received approximately $1.6 billion in funds from the Troubled 
Relief Asset Program and laid off almost 450 employees.
  At a time when banks are not lending and need federal assistance, 
they should not be treating themselves to lavish parties with 
performances by Sheryl Crow. I supported the Emergency Economic 
Stabilization Act of 2008 because I believe that we need to help our 
financial institutions in order to stabilize our economy. However, I 
firmly believe that every institution receiving funds has a 
responsibility to appropriately use the federal assistance provided by 
taxpayers.
  I am sick of hearing about financial institutions that are receiving 
funds and behaving inappropriately. CEOs need to exert leadership 
during these trying economic times. If they don't, they should repay 
taxpayers out of their own pocket. Now is not the time to be throwing 
lavish parties, giving out excessive bonuses, and spending on 
unnecessary renovations. It is time to focus on how best to restore the 
economy and for the banks, this means responsible lending.
  Northern Trust is not the first TARP recipient company to spend 
foolishly, but I want it to be the last. For this reason I am 
introducing the TARP Taxpayer Protection and Corporate Responsibility 
Act of 2009 which would prohibit TARP recipients from sponsoring, 
hosting, or paying for entertainment or holiday events during the year 
in which they receive assistance or the following year. The legislation 
would give the Secretary of the Treasury the authority to issue waivers 
and would become effective as of March 1, 2009.
  I applaud the action the Obama Administration has taken to address 
executive compensation and the provisions included in the American 
Recovery and Reinvestment Act of 2009, but I believe we must do more. 
The American Recovery and Reinvestment Act requires the Treasury 
Department to publish guidelines on the use of funds. However, I 
believe we need to do more than providing guidelines for the use of 
these funds. As we all know, money is fungible and a TARP recipient can 
always explain that TARP funds were not used for questionable purposes.
  During these difficult economic times, we need to send a message to 
the American people that we are responsible stewards of public funds. 
We must try to help companies, but only if they operate in an 
appropriate and responsible manner which values the assistance of the 
American taxpayer. At a time when banks are not providing enough 
lending to small businesses and others, they should not be throwing 
lavish parties at taxpayer expense, and the claim that these 
``parties'' came out of ``operating expenses'' rather than taxpayer 
funds does not pass the laugh test.
  I urge my colleagues to review this important legislation.
                                 ______