BRIEF: Shareholders criticize PNC for accepting TARP money

Tue. April 28, 2009; Posted: 10:43 PM

Apr 28, 2009 (The Pittsburgh Tribune-Review - McClatchy-Tribune Information Services via COMTEX) -- PNC | Quote | Chart | News | PowerRating -- PNC Financial Services Group CEO James Rohr was criticized today by some shareholders for the bank accepting government aid and for cutting the dividend during their annual meeting Downtown.

"Why did you accept TARP money when you really didn't need it?" asked shareholder activist Evelyn Davis, referring to the government's Troubled Asset Relief Program. PNC received $7.6 billion for selling the government that much in preferred stock.

Rohr said the government "encouraged" PNC to participate in program and that it was intended for "strong banks" only. He also said that given the troubled economy, it was prudent to raise capital. That included PNC cutting the quarterly dividend to 10 cents a share from 66 cents in early March, a move that should save about $1 billion a year.

"In the environment we're in right now, capital is king," said Rohr, in response to several shareholders who criticized the cut. "It serves us well in the long-term to retain capital."

Thomas Olson can be reached via e-mail or at 412-320-7854.

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For full details on Pnc Financial Svcs Grp (PNC) click here. Pnc Financial Svcs Grp (PNC) has Short Term PowerRatings of 5. Details on Pnc Financial Svcs Grp (PNC) Short Term PowerRatings is available at This Link.

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