Looks like Rep. Steve LaTourette, an Ohio Republican, isn't the only one calling for an investigation into PNC's recent deal to acquire National City Corp. GOP presidential hopeful John McCain says he supports a probe as well.
Republican presidential candidate John McCain is calling for a congressional investigation into the sale of Cleveland's National City Bank. That sale, if it goes through, is likely to cost Cleveland thousands of jobs.Senator McCain made the statements during a one-on-one interview with FOX 8 I-Team Reporter Bill Sheil.National City is supposed to be bought by Pittsburgh's PNC bank with over $5 billion in taxpayer-funded bailout money. Asked if he supported bailout money being used for banks to buy other banks, Senator McCain said, "I do not, and I do believe we spent time on banks and bailing them out and helping other financial institutions when we should be helping the homeowners." McCain added, " I understand the local congressman (Steve LaTourette) has asked for an investigation. We should have an investigation."
Representative LaTourette says PNC could get a $5 billion tax break for acquiring National City, which would make the purchase of the bank almost free. LaTourette also says that, while National City was turned down for bailout money, PNC was encouraged to apply for $3.5 billion in bailout that might have otherwise gone to National City. LaTourette says saying National City was "participating" in the bailout under that scenario is like saying a victim participated in their own murder because they got shot.Sheil asked Senator McCain: "Does Congress have a power to act to stop deals like this, and should it?" McCain answered: "I think Congress should...Congress needs to exercise oversight. And clearly, we need to focus attention on the homeowner."Asked if he just thought Congress should exercise oversight, or if he thought Congress should act to block really bad deals, McCain replied: "Obviously, I do not support these type of deals. I think Congress needs to have hearings."
See the video of the interview here.
A letter from Comptroller of the Currency John Dugan related to the PNC-National City deal is here.