Friday, October 24, 2008

Giant Companies are Using YOUR Money to Buy Competitors

Giant companies are using YOUR money to buy their competitors.

For example, Bloomberg writes today:

PNC Financial Services Group Inc., Pennsylvania's biggest bank, plans to buy National City Corp. for about $5.2 billion in stock after receiving U.S. Treasury funds.

***

The $7.7 billion of Treasury funding, part of the government's $250 billion plan to recapitalize banks, "put this transaction on a very solid footing,'' PNC said.

Remember that the $250 billion is part of the $700 bailout which taxpayers are paying for.

This confirms CNBC's report that the feds were using the bailout to push bank mergers.

Update: Bloomberg posted a second article entitled "PNC's $5.2 Billion National City Purchase Is Takeover Template for Paulson" after I wrote this essay, which says:

PNC Financial Services Group Inc.'s taxpayer-backed $5.2 billion purchase of National City Corp. is a blueprint for regional bank takeovers pressed for by U.S. Treasury Secretary Henry Paulson, investors said.

Update 2: See also this New York Times article.

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1 comment:

  1. UnknownOctober 24, 2008 at 4:19 PM

    This is "wealth re-distribution" in the opposite direction. Waiting for the day when these crooks dethrone and Obama takes over.

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