US bankers continue lavish culture on taxpayer's money

09 February 2009

Even after receiving huge bailouts from the US government to either save themselves from bankruptcy or prop up their capital, US bankers refuse to give up their lavish culture; an outcry from US lawmakers, consumer groups and the public put the brakes on Wells Fargo's 12-day corporate junket to Las Vegas.

''Tone deaf and outrageous," was the reaction of the House financial services committee member and US Senate representative, Shelley Moore, who was joined by other lawmakers in criticising the yet again splurging of taxpayers money on sponsorships and lavish spending on employees duiring the current recession, with Americans losing their jobs everyday.

Calling it ''recognition events,'' Wells Fargo, which had received $25 billion as bailout last year, had booked 12 nights at the Wynn Las Vegas and its sister hotel, the Encore Las Vegas for treating its hard-working mortgage officers at a recognition event, which the bank defended saying that ''it was part of their tradition and "culture.''

Reports in the US media say that the Wells Fargo in the past had lavishly hosted the all-expenses paid annual junket for more 1,000 employees, where the staff were put up at some of the most expensive hotels and resorts in the US, with events like wine tasting, horse riding in Puerto Rico, helicopter rides as well as a private concert in the Bahamas by Jimmy Buffett.

The public outcry forced Wells Fargo to issue a statement saying that it was cancelling the event and describing media reports as ''misleading'' because it had scaled down the event compared to lavish jamborees of the past.

Bank of America, which also received $45 billion bailout from the US government, had sponsored a five-day Super Bowl event in Tampa, Florida costing the banker $10 million, which drew widespread flak from lawmakers, who called it ''irresponsible spending''. The bank said the event cost was much lower than what was reported in the media.