Wednesday, December 31, 2008

National City Bank executives get $50 Million Golden Parachute


During the back and forth of the National City Bank/PNC Bank fiasco somethings struck me as strange, yet I was uanble to explain as to exactly why. While Rep. LaTourette, along with our local boy blunder - Dennis Kookcinich - were out there demanding answers about this questionable buyout with money from the bailout -- National City executives seemed too quiet.

It appeared LaTourette and kook-boy were not being told the whole story, and especially not by National City. It seemed as they were fighting for National City - harder than National City; Almost like they jumped into a fight that National City didn't want.

I think we may have found out why National City executives didn't mind the takeover...

From the PD --
National City Corp.'s top executives could get as much as $50 million in payouts thanks to closing today of the bank's $5.6 billion merger with PNC.

The payouts to National City's top 14 executives could total $49.5 million before taxes, according to filings made by PNC. Those payments had been thrown into question this year because PNC is buying National City with bailout money from the Treasury Department. The legislation that authorized the bailout forbids paying such "golden parachute" bonuses to officers of banks receiving the funds.

But National City did not receive the funds and apparently is not subject to those restrictions. PNC spokesman Brian Goerke said Tuesday that the parachute agreements "were existing obligations of National City, and PNC expects to abide by them." Executives who stay with PNC after the merger will not receive the payments.

Peter Raskind, National City's outgoing chief executive, stands to receive about $8.1 million in severance payments thanks to the merger. Earlier this year, he said he would donate a significant portion of those funds to the Cleveland Foundation if he received them. Raskind plans to leave the bank after the sale.

Other executives who apparently will get large payouts are retail banking chief Daniel Frate and Executive Vice President Jon Gorney. Frate could get $4.02 million after taxes and Gorney $3.96 million.

3 comments:

  1. Crooks through and through.

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  2. I was an National City Employee, I got screwed over big time when I went on on medical leave, when it was time for me to back to work after knee replacement surgery, everyone at the banks HR department got retarded because thats when all the crap hit the fan and no one knew anything or could not help me find out what to do.

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  3. Mark - how can that be? Don't we always hear how great NCB was for the community and how great they treat their workers?

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Don't be scared!