More Outrage at TARP-Funded National City Purchase

Ohio Republican Congressman Steve LaTourette has uncovered another bizarre insult to taxpayers in the Federally-funded bailout purchase of distressed National City Bank by PNC Bancorp. In a Securities and Exchange Commission filing, it is documented that PNC could use $80 million of the $5.2 billion purchase for “golden parachutes” to 14 National City executives. According to Radio Station WCPN, a stunned LaTourette said:

“The anomaly here is that OK, we’re [spending] $700 billion of taxpayer money. Shareholders and maybe employees are going to take a bath. And these gentlemen-I don’t know if there are any women involved-are going to get a payout of $80 million.”

Golden parachutes that are taxpayer-funded… now there’s a twist. Thousands of workers will lose jobs and 14 executives responsible for running National City into the ground walk away with $80 million. Do these guys think they work for AIG? The Troubled Asset Relief Program (TARP) is troubled indeed. It has so little transparency, you think Congress was sitting rubber-stamping legislation in Kampala, not Washington.

Related Links

National City Bank Executives Get Golden Parachutes

National City Shareholders Approve PNC Deal

Federal Reserve Approves National City – PNC Deal

A Dozen Lawsuits Put The Breaks on National City Sale

PNC-National City Deal Likely To Go Ahead

LaTourette Criticizes National City Golden Parachutes

Is Treasury Helping PNC Swallow National City?

Sir Evelyn de Rothschild Calls For Action

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Send your comments on the National City-PNC merger to the U.S. Federal Reserve to the attention of Vice President Nadine Wallman, 1455 East Sixth Street, Cleveland, Ohio 44101-2566. Fax 216-579-2932; e-mail nadine.m.wallman@clev.frb.org

~ by deadmanscurve on November 20, 2008.