The party's over, folks.
That's the message Sen. John Kerry, D-Mass., sent to all the banks receiving funds from the Troubled Asset Relief Program in a bill he introduced Tuesday. Lobbying groups, however, argue that the "parties" in question are the lifeblood of an industry employing hundreds of thousands of people. Kerry's legislation would put even more people out of jobs, the groups claim.
Kerry's bill would prevent TARP-funded banks from "hosting, sponsoring or paying for conferences, holiday parties and other entertainment events." It appears as though Northern Trust Bank's Hollywood getaway was the last straw for Kerry. The bank, which received $1.5 billion in bailout assistance, recently flew hundreds of employees and clients to Los Angeles and reportedly hosted "a series of lavish parties and concerts."
The American Society of Association Executives, the U.S. Travel Association and 10 hotel chains are pushing back. The ASAE sent a letter [PDF] to Kerry Thursday urging him to "consider the unintended fallout of your proposed legislation." Ten major hotel chains, including the Hilton and Marriott, began running online ads on political newspaper sites highlighting the number of travel-related jobs lost in 2008. Geoff Freeman, the travel association's senior vice president of public affairs, called Kerry's bill just the latest move in a government-wide "witch hunt."
Whitney Smith, a spokeswoman in Kerry's office, said the senator has received "overwhelming support" for the bill, and stands by its purpose regardless of lobbyist reaction against it.
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