Treasury taking stake as PNC agrees to buy National City

Treasury taking stake as PNC agrees to buy National City

www.marketwatch.com

NEW YORK (MarketWatch) -- In a move that signals yet another turn in the government's dramatic attempt to rescue the U.S. financial system and restart credit flows, the Treasury agreed to invest $7.7 billion in PNC Financial Financial Services Group Inc., which will use the lion's share of those funds to buy regional rival National City Corp.

(visit the link for the full news article)

The deal to acquire Cleveland-based National City, valued at roughly $5.5 billion in stock and cash, confirms recent market speculation that banks receiving Treasury investments might use those funds to finance acquisitions rather than for direct lending.

(emphasis mine)

Well, that basically settles that question. This bailout that Dear Leaders were gracious enough to allow us to pay for, which was also supposed to save all of our asses, is more likely to simply make it easier for regional banks to gobble up their regional competitors and, in time, themselves become mega conglomerate banks serving an even larger region than before.

All the while, Dear Leaders will be vigorously rubbing their hands together and looking out over the landscape of the banks searching for the next bank to nationalize and fund like a pimply faced fat kid hunched over a set of 20 sided dice trying to decide if he should use his +5 ice damage spell of blizzards.

We *heart* Dearest Leaders for providing our banks not only the safety of nationalization, but also unshackling them from the restrictions of competition and assisting them in their efforts to buy out all the little guys around them.

www.marketwatch.com
(visit the link for the full news article)

Banks get bought out all the time. NCC was eyed by TONS of banks in the US and even in Canada. The only problem is a lot of them didn't have enough money recently to make the purchase. It was inevitable that NCC would be bought out and niether PNC or NCC were going to go completely under.

reply to post by vapedson


You aren't following me here. The problem isn't that PNC bought NCC. The problem is they did it WITH OUR MONEY and in exchange they became a holding of the United States government. If tons of banks were looking at NCC, fine, let one of them that has the liquid capital available to support such a purchase buy them out at their own risk, using their own resources. It's called capitalism and it used to be the way we did things here in the US, back before Dear Leaders put capitalism on a Bataan-style death march towards socialism, that is.

Oh and isn't this special??

Plain Dealer

National City's top three executives will get golden parachutes with a combined value of at least $40 million following the company's sale to PNC.

Are we funding these fellas' parachutes with part of that $7.7B?

reply to post by anachryon


They ought to give these scheizenkopfs parachutes made out of real gold, in an airplane 35,000 feet above the ocean, and shove their asses out of said plane. If they survive the fall, they'll have a painfull choice to make... sink with my ill gotten gains or swim with the other sharks?

I have a question if someone could answer?
The 1st of Sept. before the Bailball..I made an offer to purchase a home.
(It was a short sale)and I am still waiting on the sellers lender to send out the appraiser. My loan is thru National City, and I found out so is the sellers. Now today this news about National City..What does this mean for me if anything?
Thank you in advance..

Jeez,If I didn't know better it looks like our government is building a "Trust" of banks.When all the banks come under controll of the government,what the heck kind of monster will we have?

Originally posted by burdman30ott6
reply to post by anachryon

 

They ought to give these scheizenkopfs parachutes made out of real gold, in an airplane 35,000 feet above the ocean, and shove their asses out of said plane. If they survive the fall, they'll have a painfull choice to make... sink with my ill gotten gains or swim with the other sharks?

Thanks for making my day

While I have nothing of worth to add to the conversation, I wanted to add something on the tail of what you say.

This Halloween I will be wearing my Ray-bans, gelling my hair back, throwing on my tuxedo with gold watch (naturally). I will also be spray painting an old satchel of mine, along with several square meters of cloth BRIGHT gold. I will then parade around as the Golden parachute demon.

reply to post by MissysWorld


It means PNC Bank would now be the (potential) lender.
Have you both been approved, with all paperwork complete? If so, and if it's a 30yr fixed type mortgage, chances are decent that your loans will continue on as scheduled. Your paperwork may or may not change to reflect the PNC name; no word yet if they're ditching the NCC moniker.
If one or both loans haven't been approved, they still have the potential to go through depending on PNC's lending standards. You *may* have to re-apply.

Call your contact person at NCC Monday morning and see if they have any more info for you.

Yes I was already approved by NC..
I definately will be calling them on Monday..Thanks so much for the info

reply to post by burdman30ott6


Nice find! Starred & Flagged!

Amazing, so the rescue to provide them with funds so they can resume lending and our economy can return to some semblance of normalcy is not actually going to be used that way right?

They instead are going to consolidate wealth into more economically 'critical' masses which we will be forced to protect or face economic disaster?

Which is, I thought, what we are trying to 'cure' with this 'lending money'?

But the Secretary of Treasury has a new power, he can't be over-ruled nor can any of his actions be contested by ANY court? That's about the gist of his new 'tzar' powers, no?

And the media, of course, is focusing on some mentally-ill woman who carved a "B" onto her face?

Where's my cigarettes?