PNC Financial repays $7.6 billion to U.S. government
PNC Financial Services Group has repaid the U.S. Treasury the $7.6 billion in government aid it received a year ago under the Troubled Asset Relief Program, or TARP.
The bank repurchased the 55.6 million preferred shares it issued to the government in exchange for the money in December 2008. PNC had declared Feb. 3 that it would repay the money sometime this month.
To fund the repurchase, PNC last week issued $3 billion in common stock and $2 billion in senior debt. The balance of $2.6 billion PNC repaid from cash on hand, said bank spokesman Fred Solomon.
PNC also agreed last week to sell its securities processing and administration business to BNY Mellon Corp. for $2.3 billion. The BNY Mellon deal is expected to close, and PNC would receive that cash, in the July-September quarter, pending regulatory approvals.
PNC used the $7.6 billion in TARP proceeds to acquire troubled National City Corp. of Cleveland for $5.4 billion in December 2008, becoming the nation's fifth-largest bank.