Morgan Stanley suspending most participation at Memorial golf tournament
Entertaining out at Memorial tourney
By Becky Yerak
Tribune reporter
February 26, 2009
Given the criticism Northern Trust Corp. faced for entertaining people at its golf tournament, Morgan Stanley has decided to avoid the links.
Morgan Stanley, which received a $10 billion injection of government funds, will continue to sponsor the Memorial Tournament, but company representatives won't be going. "We're not participating this year due to the environment," a Morgan spokeswoman told the Tribune on Wednesday.
The Memorial Tournament will be held June 4-7 in Dublin, Ohio, outside Columbus.
The decision came a day after Chicago-based Northern Trust came under fire for wining and dining clients at its namesake PGA event.
On Tuesday, the bank, which received about $1.5 billion in November as part of the Treasury Department's Troubled Asset Relief Program, was criticized by several U.S. congressmen for flying hundreds of employees and clients to last week's Northern Trust Open in Los Angeles, putting some of them up at ritzy hotels, and treating them to concerts by Chicago, Earth Wind & Fire, and Sheryl Crow.
Several House Democrats termed the activities irresponsible and called on Northern, which caters to wealthy clients and institutions, to return to the federal government the equivalent of what the bank "frittered away on these lavish events."
Northern said its spending was related to its five-year, $35 million commitment, signed in 2007, to sponsor the tournament, which it uses to maintain client relationships.
The bank also pointed out that U.S. taxpayers are contractually assured a return on their investment. Currently, Northern Trust said, it pays the government $78.8 million on an annual basis as a return on taxpayers' money, or $19.7 million per quarter.
Separately, Northern Trust told the Tribune on Wednesday that it had no policy changes to announce related to the golf tournament, which was held Feb. 19-22.
Northern also has posted a letter to employees, shareholders and clients on its Web site (
www.northerntrust.com) addressing questions about its golf sponsorship.
byerak@tribune.com
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