BANKRUPT BANKER
While many banks have agreed to take billions in federal funds, the White House says that financial institutions have been hoarding the money
Wednesday 29 October 2008
While many banks have agreed to take billions in federal funds, the White House says that financial institutions have been hoarding the money.There’s also concern that financial businesses will use the bailout funds for purposes other than lending. Case in point: The Pittsburgh, Pa.-based PNC Financial Services Group (NYSE: PNC) said Oct. 23 that it agreed to sell $7.7 billion of preferred stock and related warrants to the U.S. Treasury under the Troubled Assets Relief Program. The next day, PNC announced that it would buy Cleveland, Ohio-based National City Corp. (NYSE: NCC) for $5.6 billion in a deal that stands to make PNC the nation’s fifth largest bank.
