Banks Using Bailout Money To Party!

Last week Wells Fargo announced it was cancelling a four day business meeting in my hometown of Las Vegas, Nevada after reports said the meeting was a "pricey Las Vegas casino junket."

I have to say this is completely untrue and that it is a shame that this trip had to be cancelled. With all that is going in banking system right now I can understand the perception that the banks are taking government bailout money to party it up, but this simply not the case.

Many banks including the ones I had worked all had these types of trips to reward their hard working sales staff. Whether they were called inner circle, gold club, etc. it is was nice to be recognized by all your peers for all your hard work.

I was glad to see Wells Fargo stood their ground to set the record straight stating, " The event is not a "junket" for executives but a four day business meeting and recognition event for hard working team members who made homeownership achievable and sustainable for borrowers across the nation."

Wells Fargo was of nine banks to receive funds from the first round of government bailout money last fall, but the reports of been called "intentionally misleading."

In one Associated Press story, CNN reported that Wells Fargo was taking a 12 night
trip to Las Vegas and staying at Las Vegas's most expensive hotels. This grew questions and much criticism on Capitol Hill on whether or not Wells Fargo misused taxpayer money with the $25 billion they received from the Treasury's bailout plan.

Andrew Cuomo, New York's Attorney General, said in e-mailed statement to Bloomberg News that, "The question here is whether Wells Fargo is spending taxpayer money to bankroll Las Vegas junkets. That is an answer the American people deserve to know because this is their money."

Wells Fargo refuted the allegations say that Associated Press report "misleads readers by implying Wells Fargo used the governments investment to pay for these events. We've used the government's investment to lend to creditworthy customers and to help homeowners avoid foreclosure."

As reported by Bloomberg, Wells Fargo had added $9.7 billion in loans in the fourth quarter, compared with the $86.4 billion that were declined at Bank of America, Citigroup, and JPMorgan Chase. Wells Fargo has also stated that they do not need any further bailout funds, while Citigroup and Bank of America did receive additional funds.

CNN was told by Well Fargo it had decided late last year to cancel such recognition events for 2009 "except those where the financial commitment was so great that no meaningful savings would occur by canceling them, but in light of the current environment, we have decided to cancel this event as well."

I hope the record has been set straight and people understand the bank was not misusing bailout funds. I know it may seem like the bank was spending money to go live it up in Las Vegas, but really it not like that.

I know I always looked forward to those kind of trips for all my hard work. It is a shame that Wells Fargo cancelled that trip. I feel those types of recognition trips are important to keep staff motivated. What's next no bonuses and no commissions? I have an idea let's work for free.