Wells Fargo Bank Cancels Vegas Trip After Publicity

After a tremendous amount of taxpayer dollars has been funneled to banks for the purpose of getting loans up and running, you'd think the banks would be a little sensitive about how they spend their money. Wells Fargo Bank is finding out the hard way that the last thing they should be doing is planning swanky Vegas "team building" trips:

WASHINGTON -- Wells Fargo & Co. abruptly canceled Tuesday a pricey Las Vegas casino junket for employees after a torrent of criticism that it was misusing $25 billion in taxpayer bailout money.

The company initially defended the trip after The Associated Press reported it had booked 12 nights beginning Friday at the Wynn Las Vegas and the Encore Las Vegas. But within hours, investigators and lawmakers on Capitol Hill had scorned the bank, and the company canceled.

The conference is a Wells Fargo tradition. Previous all-expense-paid trips have included helicopter rides, wine tasting, horseback riding in Puerto Rico and a private Jimmy Buffett concert in the Bahamas for more than 1,000 of the company's top employees and guests.

"In light of the current environment, we have now decided to cancel this event as well," the company said Tuesday night in a news release that also said the it had never planned to use taxpayer bailout money for the trip.

The Wynn and Encore are two of the priciest properties on the Strip. And the notion that this money would be different from the bailout money just doesn't pass the smell test with most people. When Wells Fargo accepted those bailout funds (even though they were forced on them by Hank Paulson) they effectively became a ward of the federal government which means they no longer have control of their money, whether it's their own or the taxpayer's. Anything like the trip they planned above will result in very negative publicity.

Welcome to the world of nationalized banking, Wells Fargo.

Speaking of Wynn's, they could really use the Wells Fargo business:

LAS VEGAS – Wynn Resorts Ltd. said Tuesday it is cutting wages for all salaried workers at its Wynn Las Vegas casino and reducing work weeks for full-time hourly employees in an effort to save about $75 million to $100 million a year.

As the economic downturn keeps would-be gamblers at home, casino operators have struggled to cut costs and shore up their cash positions. Wynn said the new initiatives also include eliminating 2009 bonus accruals and suspending its 401(k) matching contributions.

"We will make decisions that protect and preserve the stability of the employees and allow the company to optimize its performance," said Steven A. Wynn, chairman and chief executive, in a statement.

You better start checking their website. I have a feeling they'll have some pretty cheap room rates in the near future.