mik123

Opportunity in the Paulson Backlash

Barney Frank was duped. Let's see the criteria for selection for TARP and who is on this 5 member panel. Don't rollover about National City.This may be the biggest bank heist of the century.They can stand alone and save thousands of jobs. TARP was passed to help National City. Paulsons sales job to the public,house and senate leaders was quick passage so they can start buying troubled assets. Then it was a different story after passage. National Citys competitors in Ohio that did receive TARP have seen their stock go up apx. 50% since the Oct 24 announcement of the PNV- Nat City. Look at Fifth Third, Keybank ,etc It appears Nat City was pushed into a merger by a top treasury official that worked for PNC as an attorney until Aug. 2005.It was said that he called Nat City a week before the merger announcement and said don't expect Fed help. He probably will be back representing PNC after yesterdays election. PNC gets 5.1 billion upfront tax benefit, 2 billion in cash, and 1 billion in Visa stock totaling 8.1 billion benefit. PNC is only paying 5.2 billion. Call Latourette, Barney Frank, Sen Shumer,Chris Dodd and your local house and senate representatives and demand National Citys share of TARP. There is no way they can be denied since Citigroup and others with inferior financials to Nat Citys received funds. They won't disclose the selection criteria because it would expose the National City heist and conflicts. They can't because they gave Goldman Sachs 10 billion for no reason.Goldman has no troubled loans or assets. There was nothing to rescue. This reminds me of the secretive group from industry that Cheney put together to establish energy policy for the United States. Prior to the merger announcement, there were 10 buy recommendations by analysts who follow the company in detail. I believe the deal has an escape clause if it doesn't receive regulatory approval. Barney Frank came out Friday and said it's illegal to use TARP money to acquire another bank. That should make the deal null and void. The top three officials at Nat City are walking away with apx. 16 million after tax. If they accepted TARP money and stayed independent, they would be limited to $500,000 before tax compensation per year. That's a huge difference.

Increased Government Investment in Banks?

If TARP states the money can not be used for acquisitions and can only be used for lending as Barney Frank stated Friday, I don't see how there will be regulatory approval on the PNC -Nat City deal. That's probably why you haven't heard of any other deals. National City can stand alone and save thousands of jobs. TARP was passed to help National City. It appears Nat City was pushed into the merger by a top treasury official that worked for PNC as an attorney until Aug. 2005. He probably will be back representing PNC after todays election. Call Latourette, Barney Frank, Sen Shumer and your local house and senate representatives and demand National Citys share of TARP. There is no way they can be denied since Citigroup and others with inferior financials to Nat Citys received funds. Prior to the merger announcement, there were 10 buy recommendations by analysts who follow the company in detail. I believe the deal has an escape clause if it doesn't receive regulatory approval. Barney Frank came out Friday and said it's illegal to use TARP money to acquire another bank. That should make the deal null and void. The top three officials at Nat City are walking away with apx. 16 million. If they accepted TARP money and stayed independent, they would be limited to $500,000 max. compensation per year. All this poses many questions.