PNC To Repay TARP Preferred Shares

The PNC Financial Services Group Inc. has reached an agreement with its banking regulators and the Treasury Department permitting it to redeem the $7.6 billion of preferred shares held by the U.S. Treasury under the Troubled Asset Relief Program (TARP) Capital Purchase Program.

‘With signs of an improving economic environment and stabilizing financial system, we believe now is the appropriate time for us to redeem the preferred shares held by the U.S. Treasury. As a result, we are pleased to have reached an agreement with our regulators to return the taxpayers' investment in PNC,’ says James E. Rohr, chairman and CEO.

‘Once Treasury receives PNC's repayment, it will have recovered nearly 70 percent of taxpayer investments in the banking system," a Treasury statement adds. "Also, this repayment means that of the $376 billion in total TARP funds that have been disbursed since 2008, only $203 billion will be outstanding today, and Treasury will have recovered $170 billion of taxpayer investments in the banking system.’

SOURCES: PNC, Treasury Department


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