The Home Front

Regulator Dismisses Congressman's Allegations

By Luke Mullins

Posted: October 28, 2008

A day after his ties to PNC Financial Services Group were called into question by a Republican lawmaker, Comptroller of the Currency John Dugan released the following letter.

In it, the bank regulator calls Ohio Republican Rep. Steve LaTourette's suggestion that his decisions regarding PNC's recently announced plan to acquire National City Corp were influenced by his past dealings with the Pittsburgh bank "baseless."

Thoughts - Facts instead of Emotion

Buyout, lay offs, joblessness - These are all scary and unsettling, but was there any wrong doing? The article indicates that PNC received substantially more than the cap of 3% of TARP funds. Is this the truth? If so, then it needs to be investigated and reported. It doesn't matter that the funds will be repaid. It's about the Comptroller's office operating according to the guidelines established for TARP. How PNC uses those funds? The general public was lead to believe that they would be used to help them in the short term, not for companies to obtain the injection of capital to purchase other companies. This doesn't look like it helps the general public. How can PNC and National City quickly help the general public? It looks and feels like big company is getting bigger with these funds and the taxpayer is footing the bill. If government is to play a bigger role in the lives of the general public, then it needs to put forth a face that it really cares about the general public and governments actions need to support the rhetoric. These kinds of actions fuel the fire that government and big business are in partnership and the general public is left holding the bag.

Laurel Bouchard of TN @ Nov 02, 2008 09:42:11 AM

Patience needed

Be patient. Nat City had announced a layoff of 4,000 before the deal. PNC has doubled in size and will not be able to service clientele at the customary high levels without doubling the workforce. The conversion won't happen until late 2010. Many will have found new jobs by then anyway. The call center and branch jobs will still be needed. NCC did a great job of raising cash through well above average deposit rates and the Corsair deal. But consumer confidence never came around. Bailout is a bad word. While it is taxpayer money. It is a loan that is to be repaid with in five years with a five percent dividend. The money is being used to make a PROFIT. When was the last time that happened. If any other bank had acquired NCC would the people of Cleveland been this upset? Or is it that a Pittsburgh based bank will soon run it that is so upsetting? PNC is one of the two or three strongest and best run banks in the country. Now NCC customers and employees will be part of that.

Matthew Gilbert of PA @ Nov 01, 2008 11:48:41 AM

NCB Employee

It's a shame that these types of dealings go on. It's no suprise though and it doesn't matter what party you belong to. As a stockholder, employee, and taxpayer, I would like to know why NCB was put on probabtion and denied the bail out money. I can not believe that the aquisition of Franklin Templton caused all of this failure.

Soon to be Unemployed of OH @ Oct 31, 2008 18:25:44 PM

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The Home Front

The Home Front

Associate Editor Luke Mullins tracks the treacherous housing market and explains how to unload a five-bedroom McMansion or even find that dream home.

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