PNC Financial Services Group Inc.’s purchase of rival National City Corp. yesterday showed the federal bailout at work.
Pittsburgh-based PNC, which has major operations in the Philadelphia area, received approval late Thursday for a $7.7 billion cash infusion by the U.S. Treasury Department.
The next morning, PNC, the 10th bank to get a boost under the $700 billion rescue package, announced its purchase of National City for $5.2 billion in stocks and $384 million in cash – the kind of takeover the bailout was meant to facilitate.
In buying Cleveland-based National City, which PNC had been eyeing for months, PNC joined Bank of America Corp., Wells Fargo & Co., and JPMorgan Chase & Co. as a buyer of weakened institutions and as a key player in the nation’s restructured banking sector.
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