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Congressman Wants PNC-Nat. City Deal Investigated

October 27, 2008 RSS Feed Print

Rep. Steven C. LaTourette of Ohio has asked Treasury Secretary Henry Paulson to launch an immediate investigation into PNC Financial Services's acquisition of National City, which was announced last week.

LaTourette, a Republican who represents the greater Cleveland area—where National City is headquartered—said in a letter to Paulson that he fears Comptroller of the Currency John Dugan may have steered $7.7 billion in bailout funds to PNC, which was a client of his when he worked in the private sector.

PNC Bank was a client of Dugan when he served as a partner at the law firm of Covington & Burling before taking the post as top banking regulator in 2005, LaTourette said in the letter.

LaTourette called it "troubling that the very first regional bank-hand picked for help was a former client of Mr. Dugan, and Mr. Dugan apparently orchestrated the sale of National City Bank to PNC and wanted it done before the end of last week."

PNC announced plans Friday to gobble up the struggling Nat. City for about $5 billion in a deal aided by a $7.7 billion capital injection PNC will receive from Treasury under the broader initiative to inject capital into U.S. financial institutions.

In the letter, LaTourette also said rules of the Troubled Asset Relief Program, or TARP, may have been incorrectly applied to PNC. "I believe PNC was only eligible to receive an amount of bailout money equal to 3 percent of its risk-weighted assets, but the $7.7 billion bailout for PNC is closer to 6 percent," LaTourette said in the letter. "The law stipulates that 3 percent of a bank's risk-weighted assets is the maximum that can be given to any bank under the program rules."

Tags:: banking,; government intervention,; Steven LaTourette,; Henry Paulson,; PNC Financial Services,; Wall Street

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Realize I'm a little late to this blog, but some things are beginning to show up that may shed some light on the corruption within NCB, not that it will do any good for those of us who have been taken.
http://www.bizjournals.com/stlouis/print-edition/2011/04/15/shaun-hayes-faces-lawsuit-from-another.html
http://www.bizjournals.com/stlouis/news/2011/04/13/ceo-shaun-hayes-leaves-sun-security-bank.html
http://idea6.adxinteractive.com/developers/
It seems, though apparently is impossible to prove due to insider cover up and undocumented verbal fraud used, that bankers at NCB may have been using their position to make loans on commercial property, deliberately slow and then stop funding, have their foreclosure attorney foreclose under "at will" clauses, then buy up the valuable property through other investment entities at pennies on the dollar.
In order to keep developers and contractors from being able to sue, it appears that false allegations may have been made, fraudulent calls to other banks and entities with related interests informed of those false allegations to get them to act against the property owners and contractors, and other verbal threats carried out, all designed to ruin the ones being taken from being able to sue the bank. These apparent schemes have ruined small businesses, individuals, cost hundreds of jobs, and looted the bank itself. The buyout of that bank by PNC with TARP funding covered up the piracy and conspiracies by making these loan liabilities the responsibility of the FDIC, creating doubts that expensive lawsuits against the bank costing hundreds of thousands of dollars, even when won on principle, would ever result in the payment of judgment dollars, and scaring off lawyers from taking the case on contingency.
It appears that the political connections of these schemers prevent the federal regulators from investigating in depth, while hundreds of people of honesty and integrity have been ruined to line the pockets of the conspirators.

anne3 of MO 9:24AM April 25, 2011

To all PNCers. It's just a matter of time. Our company, just like you all have your stories of theft and indiscretions, illustrate their weakness. The market will see how weak this company truly is, and that they operate like street thugs. Business starts on the street level. I smell this house of cards collapsing and I am watching for the right time to short this stock, as they are ripe for "big adjustments". A complete collapse of this company will happen, I just feel sorry for the National City employees that new what customer service was all about

branjaye of IL 8:34PM August 17, 2010

They will get you get caught up in continuous overdraft fees. They say payday company s will rip you off but this bank’s procedures are worse. I had three check go through I was 23 cents short on the 3 check so they put that check through first and bounced the other two because they added on a $37 bounce fee. So being 23 cents short cost me $111 in overdraft fees. They notified me by mail so I went in to clear it up. I told them I checked my account and the $9.00 and $6.00 should have gone through. They were pending the day before. They replied that they got the 3rd check the next day and they put that one through first. I said why the other two came in first. Their reply was because they can. We always put the highest dollar amount through first because we figure its more important and we figure it may be your rent. I said my rent is not $32.23 from a gas station. the bank personnel just laughed. So I continued what difference does it make I have overdraft protection so your going to put all of them through anyway. I was told that was their policy. So I just said to heck with it I'll just pay it and mark it up to a lesson learned. So I gave them the $111 and the $14.23 for the other 2 checks and the 23 cents I was short. I was then informed it would cost me another $24 for continuous over draft fees. I explained to her that the $125.23 was all I had till payday and I didn't get paid until late Friday after the banks closed and it was only Tuesday. She said that's okay. I left feeling Saturday this nightmare would be over. I went in first thing Saturday morning with my $24 dollars and handed it to them relieved that I was done with this nightmare. The teller looked at me I handed her the deposit slip and $24 dollars and said finally I'm caught up. She just looked at me holding the money in her hand and said. it's going to take $64 to bring your balance to a 0 balance. I was shocked I had explained to them being a single mother working part time and money is scarce and they told me it was okay but never mentioned there would be more charges. I'm thinking wait I am paying $8.00 a day on their continuous overdraft fees. I had already given them the money for the checks and the initial overdraft fees. So, long story short, being 23 cents short had just cost me $175 dollars. Stupid gas pumps for running over. I now prepay for my gas so the
pump will not go over.

dmmomof5 of IL 2:39PM May 19, 2010

Congressman Wants PNC-Nat. City Deal Investigated

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