By Joseph A. Giannone
NEW YORK Feb 25 Morgan Stanley (MS.N), citing
a tougher market and political environment, said on Wednesday
it will not entertain clients and executives as part of a
professional golf tournament it is sponsoring in June.
"We've canceled our participation in the event due to the
environment," a spokeswoman said, though she declined further
On Tuesday, lawmakers railed against Northern Trust Corp
[NTRS.O] amid reports the Chicago investment management
company, which received a taxpayer-funded capital infusion last
year, had hosted "lavish parties" at a Southern California golf
tournament it sponsored.
Bonuses, perks and other spending by banks has become
politically untenable as the U.S. government scrambles to
revive the banking system.
Morgan Stanley will continue to sponsor the event from June
4 through June 7, "The Memorial Tournament presented by Morgan
Stanley," at a Dublin, Ohio, golf club. Typically, sponsorship
deals are subject to contracts that are difficult, and
expensive, to cancel.
The investment bank last fall received $10 billion from the
Treasury as one of the first banks bolstered by the Troubled
Asset Relief Program, or TARP.
On Tuesday, U.S. Sen. John Kerry, a Massachusetts Democrat,
said he will introduce a bill this week to end "extravagant
spending practices of U.S. banks" that receive taxpayer
He said he was prompted by a report that hundreds of
Northern Trust clients and employees were flown in and put up
in luxury hotels for the Northern Trust Open at the Riviera
Country Club in Pacific Palisades, California. Besides the
golf, there were concerts by Sheryl Crow, Chicago, and Earth,
Wind & Fire, it was reported.
(Editing by Jeffrey Benkoe)