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PNatCity
Game Over. The purchase of Cleveland banking staple National City Corp. by PNC was approved by shareholders today. The NCB name will eventually go the way of Euclid Beach Park, Sohio and Cleveland Trust but, we're use to this type of thing by now.
PNC's purchase of Nat City was made possible by the largess of the Treasury TARP program. This has called into question the motive behind allowing the acquisition to go through considering that Nat City was denied TARP funds resulting in the PNC takeover.
As much as the circumstances around PNC's purchase have rankled local members of Congress the short lived Save NCB Movement was no match for the forces of creative destruction. I am of course being cynical about the creative destruction part. The TARP and the resulting thumbs up and thumbs down are government sponsored financial engineering at its finest. So much for an invisible hand on the tiller.
Regardless of the way NCB was getting the shaft in this deal there are two inescapable facts that should be considered. One, NatCity was for sale with or without the government backed infusion that pushed PNC over the edge. The private equity investment NCB received in May was not enough to prevent a future sale. I've had people from NCB tell me as much. Two, the sorry condition of Nat City is the direct result of the bank's management team betting that the subprime cash conveyor belt would never shut down. It did and now the local banking landscape is a changin'.
PNC's purchase of Nat City was made possible by the largess of the Treasury TARP program. This has called into question the motive behind allowing the acquisition to go through considering that Nat City was denied TARP funds resulting in the PNC takeover.
As much as the circumstances around PNC's purchase have rankled local members of Congress the short lived Save NCB Movement was no match for the forces of creative destruction. I am of course being cynical about the creative destruction part. The TARP and the resulting thumbs up and thumbs down are government sponsored financial engineering at its finest. So much for an invisible hand on the tiller.
Regardless of the way NCB was getting the shaft in this deal there are two inescapable facts that should be considered. One, NatCity was for sale with or without the government backed infusion that pushed PNC over the edge. The private equity investment NCB received in May was not enough to prevent a future sale. I've had people from NCB tell me as much. Two, the sorry condition of Nat City is the direct result of the bank's management team betting that the subprime cash conveyor belt would never shut down. It did and now the local banking landscape is a changin'.
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