Bailed-Out Banks Draw Ire For Sponsoring College Bowl Games

Some of the "biggest sponsors" of college football bowl games this season also were recipients of federal bailout money, including Citigroup, which was presenting sponsor of the Rose Bowl, as well as Capital One Financial and GMAC, according to Michael Crittenden of the WALL STREET JOURNAL. Critics of the federal bailouts "have seized on the high-profile sponsorships to take shots at the financial industry and the government." U.S. Rep. Scott Garrett (R-N.J.) "questioned why banks -- which reportedly aren't using federal funds to lend to consumers as intended -- need to sponsor nationally televised sporting events." Garrett: "The irony is these guys aren't lending to people, so what are they advertising for?" U.S. Treasury Department officials have said that they "didn't want to impose restrictions for fear of reducing participation in" the Treasury's Troubled Asset Relief Program (TARP). Citigroup VP/Public Affairs Luis Rosero said that "all companies need to attract new clients." Rosero added of the company's Rose Bowl sponsorship, "For the last several years this has been part of an integrated marketing strategy and no tax-payer-funded TARP money was used for it." Meanwhile, Crittenden noted Bank of America, which received $15B from TARP, is a sponsor of the Pioneer Las Vegas Bowl, while U.S. Bancorp is a sponsor of the Roady's Humanitarian Bowl. Eagle Bancorp, which received $38.2B from TARP, title sponsored this year's EagleBank Bowl in DC. EagleBank Chair & CEO Ronald Paul said that his bank "committed to the bowl game well before the TARP program and that the game was great marketing." Paul: "For the amount of cost associated with the bowl game, for us, it was a fantastic investment" (WALL STREET JOURNAL, 1/3).

OUT OF BOUNDS: Fox Business’ Cody Willard said, “I love the fact that the GMAC Bowl itself, if you go to the Web site, … their mission, what their marketing, is they’re going to teach people how to be fiscally responsible.” Willard added of Citigroup, “I say let them burn, man. They should not be able to advertise. My welfare dollars are better spent feeding a kid than bailing out Rose Bowl sponsors” (“Happy Hour,” Fox Business, 1/2).