un - FREAKING - believable

[heyheybooboo]

So the details of Hank Paulson's Golden Bailout Bucket of Taxpayer Cash are now coming into focus ...

PNC Financial buying National City for $5.58B

PNC Financial Services Group Inc. said Friday it is acquiring National City Corp. for $5.58 billion, the first bank to use fresh investments from a federal bailout program to make an acquisition.

The deal comes within hours of PNC Financial receiving approval for $7.7 billion in cash from the government under the $700 billion government program aimed at relieving the ongoing credit crisis.

The agreement is the latest deal in the rapidly consolidating banking industry. It combines Pittsburgh-based PNC, which has weathered the ongoing credit crisis better than most regional banks, with National City, a large, Cleveland-based regional bank weighed down by high-risk mortgage loans....

And my rage builds ....

PNC will pay $5.2 billion for National City through a stock transaction that values National City at about $2.23 per share, an 18.9 percent discount from Thursday's closing price of $2.75. The remaining $384 million will be a cash payment to certain warrant holders.

mmmm. Gee. I wonder if we will ever find out who these 'preferred' warrant holders may be?

The government plan calls for the U.S. Treasury to purchase preferred stock and warrants from banks in return for fresh capital. The plan is designed to help banks that have been struggling since the middle of 2007 with rising mortgage defaults and a credit crisis that has essentially shut down lending among banks and severely restricted lending to consumers.

The government will receive warrants to acquire a 15 percent stake in PNC Financial. The warrants will be good for 10 years unless retired by PNC, the company said during the call.

Congratulations fellow stakeholders! Our $7.7 billion investment with the Hank Paulson Golden Bailout Bucket of Taxpayer Cash gives us a 15% interest in PNC Financial whose current market cap is 20.49 billion. Yippee!! We've already made (4.6265) billion dollars!

:shocked:

John Jay, a senior analyst at Aite Group, said banks with cheap, stable funding sources, such as large deposit bases, will likely be the strongest through the current downturn in the economy.

But Jay also noted that an acquisition does not necessarily help fulfill the government's intended goal of providing capital to get credit markets flowing again and improving lending options for customers.

"The program was entitled specifically 'Troubled Asset Relief Progam,"' Jay said. Using the investment to acquire another bank does not provide relief for troubled assets, he said.

Look at the bright side US changes plan on announcing cash infusions

More Opaqueness ! And ...

Insurance companies may get cash injection from government

Yippee!!

Thanks, Hank!

Thanks, Cris !

Thanks, Ben !

Thanks, Dubya !


Party on, Comrades

 

[woodie1]

Originally posted by: heyheybooboo
So the details of Hank Paulson's Golden Bailout Bucket of Taxpayer Cash are now coming into focus ...

PNC Financial buying National City for $5.58B

PNC Financial Services Group Inc. said Friday it is acquiring National City Corp. for $5.58 billion, the first bank to use fresh investments from a federal bailout program to make an acquisition.

The deal comes within hours of PNC Financial receiving approval for $7.7 billion in cash from the government under the $700 billion government program aimed at relieving the ongoing credit crisis.

The agreement is the latest deal in the rapidly consolidating banking industry. It combines Pittsburgh-based PNC, which has weathered the ongoing credit crisis better than most regional banks, with National City, a large, Cleveland-based regional bank weighed down by high-risk mortgage loans....

And my rage builds ....

PNC will pay $5.2 billion for National City through a stock transaction that values National City at about $2.23 per share, an 18.9 percent discount from Thursday's closing price of $2.75. The remaining $384 million will be a cash payment to certain warrant holders.

mmmm. Gee. I wonder if we will ever find out who these 'preferred' warrant holders may be?

The government plan calls for the U.S. Treasury to purchase preferred stock and warrants from banks in return for fresh capital. The plan is designed to help banks that have been struggling since the middle of 2007 with rising mortgage defaults and a credit crisis that has essentially shut down lending among banks and severely restricted lending to consumers.

The government will receive warrants to acquire a 15 percent stake in PNC Financial. The warrants will be good for 10 years unless retired by PNC, the company said during the call.

Congratulations fellow stakeholders! Our $7.7 billion investment with the Hank Paulson Golden Bailout Bucket of Taxpayer Cash gives us a 15% interest in PNC Financial whose current market cap is 20.49 billion. Yippee!! We've already made (4.6265) billion dollars!

:shocked:

John Jay, a senior analyst at Aite Group, said banks with cheap, stable funding sources, such as large deposit bases, will likely be the strongest through the current downturn in the economy.

But Jay also noted that an acquisition does not necessarily help fulfill the government's intended goal of providing capital to get credit markets flowing again and improving lending options for customers.

"The program was entitled specifically 'Troubled Asset Relief Progam,"' Jay said. Using the investment to acquire another bank does not provide relief for troubled assets, he said.

Look at the bright side US changes plan on announcing cash infusions

More Opaqueness ! And ...

Insurance companies may get cash injection from government

Yippee!!

Thanks, Hank!

Thanks, Cris !

Thanks, Ben !

Thanks, Dubya !


Party on, Comrades

You forgot to thank Nancy and Harry.

 

[Lemon law]

If the acquisition is a troubled bank, its probably part of the bailout plan, but if they are buying another healthy bank, we should all scream foul.

 

[GodlessAstronomer]

People are so stupid. If you bail out a bank who fell into so much trouble because of pure greed, what do you think will happen?

 

[jman19]

Uh, now Nat City isn't in danger of failing, meaning this is good for the financial system. What exactly is the problem here?

 

[brandonbull]

Originally posted by: Lemon law
If the acquisition is a troubled bank, its probably part of the bailout plan, but if they are buying another healthy bank, we should all scream foul.

Troubled banks shouldn't be purchased by other banks with bailout money. The bailout money is for bailouts not mergers.

 

[Ferocious]

I find it interesting that some of the bailout money will probably being to FOREIGN owned banks.

 

[LegendKiller]

Originally posted by: brandonbull

Originally posted by: Lemon law
If the acquisition is a troubled bank, its probably part of the bailout plan, but if they are buying another healthy bank, we should all scream foul.

Troubled banks shouldn't be purchased by other banks with bailout money. The bailout money is for bailouts not mergers.

Ummm...in not letting a bank fail and cause the system further harm it is rescuing the system...

 

[dmcowen674]

Originally posted by: woodie1
You forgot to thank Nancy and Harry.

Are they the President and VP for the last 8 years?

 

[woodie1]

Originally posted by: dmcowen674

Originally posted by: woodie1
You forgot to thank Nancy and Harry.

Are they the President and VP for the last 8 years?

Are you saying he forced Congress to write and pass the final legislation they passed and sent to him for his signature? I know you people think GWB is to blame for everything but get real. He sent a 3 page bill and they returned something like a 450 page bill.

 

[Wreckem]

Originally posted by: Ferocious
I find it interesting that some of the bailout money will probably being to FOREIGN owned banks.

Thats because the Dems refused to budge on language in the bill that allows it.

Any foreign bank with problems that has american assests can and will get bailout aid...

 

[cliftonite]

Originally posted by: woodie1

Originally posted by: dmcowen674

Originally posted by: woodie1
You forgot to thank Nancy and Harry.

Are they the President and VP for the last 8 years?

Are you saying he forced Congress to write and pass the final legislation they passed and sent to him for his signature? I know you people think GWB is to blame for everything but get real. He sent a 3 page bill and they returned something like a 450 page bill.

He couldnt veto it?

 

[manowar821]

We've been telling everyone for years...

 

[woodie1]

Originally posted by: cliftonite

Originally posted by: woodie1

Originally posted by: dmcowen674

Originally posted by: woodie1
You forgot to thank Nancy and Harry.

Are they the President and VP for the last 8 years?

Are you saying he forced Congress to write and pass the final legislation they passed and sent to him for his signature? I know you people think GWB is to blame for everything but get real. He sent a 3 page bill and they returned something like a 450 page bill.

He couldnt veto it?

Why should he. Congress represents the people - the people spoke.

 

[JD50]

Originally posted by: cliftonite

Originally posted by: woodie1

Originally posted by: dmcowen674

Originally posted by: woodie1
You forgot to thank Nancy and Harry.

Are they the President and VP for the last 8 years?

Are you saying he forced Congress to write and pass the final legislation they passed and sent to him for his signature? I know you people think GWB is to blame for everything but get real. He sent a 3 page bill and they returned something like a 450 page bill.

He couldnt veto it?

Great, so now absolutely no one besides the President should be held accountable because the President has veto power? You are off your rocker.

 

[Thump553]

woodie1: Did you ever read the Adminstration's original proposed bill? It takes about five minutes. A honest summary of that bill was that it was an invoice for a $750M check with all oversight explicitly barred. That's the kind of legislation you would prefer?

I'd like to see more facts on this, but offhand I'd say that any bank whose stock was last trading at $2.07 (52 week high of $24.83 and whose stock chart for the last year is pretty much a straight downward path) was a hairbreath away from collapse.

 

[woodie1]

Originally posted by: Thump553
woodie1: Did you ever read the Adminstration's original proposed bill? It takes about five minutes. A honest summary of that bill was that it was an invoice for a $750M check with all oversight explicitly barred. That's the kind of legislation you would prefer?

I'd like to see more facts on this, but offhand I'd say that any bank whose stock was last trading at $2.07 (52 week high of $24.83 and whose stock chart for the last year is pretty much a straight downward path) was a hairbreath away from collapse.

No. In all honesty I did not read what the WH proposed - just a few snippets - and I did not like it. I knew Congress would have to place oversight and other conditions on any bill that was passed, if they went along. I did not think a 450 page boondoggle was called for either.

From what I read Congress did a terrible job of protecting our money and they should be just as accountable as GWB.