No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Hey CreditDrama,
It's just a matter of time before PNC puts its name all over
Nat City's line of products. The deal is supposed to close
before the end of this year, so if you're a Nat City customer
you should be hearing something fairly shortly...
And on a side note: I don't know how the rest of you feel about
this acquisition, but I'm really ticked off that PNC was allowed to
use taxpayer money to buy Nat City in the first place.
PNC took money from the US Treasury (as part of the bailout package)
and promised to lend it directly to consumers and help restart the economy.
But what did they do? They used the funds to go on a buying spree
and pad their pockets at the taxpayer's expense. I think that's SHAMEFUL!!!
They wanted Nat City's checking/savings account deposits...and now they
have them. But I haven't read anything to suggest that PNC is going to
lend one thin dime to folks like you and me. They are hoarding capital,
plain and simple.
It's no wonder folks on Main Street don't trust banks or people on
Wall Street. They say one thing and do another. If regular folks
like you and me broke our word to the bank, they'd cancel our
accounts so fast it'd make your head spin. But when it's them,
they change the rules. So I guess the "Golden Rule of Business"
applies here: Whoever has the gold, rules.
But to get back to the original topic of this thread: Best guess is that
PNC will switch over all of Nat City's products by year's end.
And you guys know that normally I pride myself on being pretty upbeat.
But when stuff like this happens it really gets under my skin...
CanDo
"The right attitude is everything"
i've heard others comment nationaly about the bailout being used to buy up competitors at fire sale prices and how that may play out for consumers.
by the way i couldn't agree more can do!
Thanks for the luv, imducky.
Actually, in all fairness I stand corrected. I'm gonna have to
eat some humble pie.
It turns out that PNC bought National City using its own
money. $5.2 Billion in PNC stock and cash. PNC is a very
strong bank and I hope things work out for them. And as
many of you know, National City originated a LOT of subprime
mortgages that have lost most of their value. But PNC has the
financial stamina to hang on to these mortgages and work
with homeowners so the loans will start performing again.
If the transaction had stopped there, everything would be
fine and dandy. Straightforward, clean, no taxpayer money.
Unfortunately, that's not the case.
As part of the deal, PNC also sold $7.7 Billion of its Preferred Stock
to the US Treasury under the Troubled Asset Relief Program (TARP).
Hmmmmmmmmm....this raises two questions:
1) PNC's preferred stock is a healthy asset...not a troubled one.
So why in the world is the US Treasury using taxpayers' money
to buy "the good stuff" when they should be buying "the bad stuff"
(Nat City's subprime mortgages)? After all, it's called the Troubled
Asset Relief Program for a reason.
2) Don't you think a healthy, strong bank like PNC would WANT to
get rid of Nat City's bad assets as quickly as possible? Every dollar
in bad assets they keep on their books is a dollar they can't lend
to you and me...which is supposed to be the whole reason banks
are engaged in this entire process to begin with.
And the icing on the cake is that this transaction is going to serve
as the template for how the US government gets involved with
other regional banks.
This whole thing just doesn't sit well with me. Something's not right.
Anyway, to get back to the original topic: folks who have credit cards,
loans, etc. with Nat City should see a name change pretty quickly.
No later than the end of this year, I should think.
And thanks again for your reply, imducky. I'm glad someone else views
this whole ordeal the same way I do...
CanDo
"The right attitude is everything"