Tuesday, October 28, 2008

National City Takeover

Michelle Malkin passes on a report from Rep. Steven LaTourette that money from the trillion-dollar government bailout recently passed by Congress was used to finance the takeover of National City Bank by PNC Bank. National City Bank is a major employer in Kalamazoo since it bought First of America Bank in 1997.

Let's hope no one in Kalamazoo loses their jobs because of the bailout Congress passed.


GOP Rep. Steve LaTourette, one of the consistent opponents of socialism in the House, reports:

U.S. Rep. Steven C. LaTourette (R-OH) says he fears that John Dugan, Comptroller of the Currency, steered $7.7 billion of taxpayer bailout money to his former client, PNC, so it could buy National City Bank.

LaTourette today sent a letter to Treasury Secretary Henry Paulson outlining his concerns and asking for an investigation. He also asked House Financial Services Committee Chairman Barney Frank (D-MA) to hold a hearing on the Fed’s decision to have one regional bank (PNC) gobble up regional bank (National City) using bailout money. LaTourette is a senior member of the Financial Services panel.

The Pittsburgh-based PNC, which bought National City on Friday at a fire-sale price with federal bailout money, was one of Dugan’s clients just before he was sworn in as Comptroller of the Currency in August 2005, LaTourette said. Prior to becoming Comptroller, Dugan was a partner at Covington and Burling, a DC law firm that specializes in banking regulation.

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