Taxpayer funded feeding frenzy

I may be wrong, but that’s the sense I get from the news that banks are using taxpayer-provided bailout money to buy up competitors:

PNC, led by Chief Executive Officer James Rohr, becomes the fifth-largest U.S. bank by deposits with its fourth acquisition [Cleveland-based National City Bank] in less than two years. Pittsburgh-based PNC announced the deal yesterday after getting $7.7 billion in government funds, part of the $125 billion the Treasury is doling out to regional banks to thaw frozen credit markets.

“It’s going to start to become the template, said Michael Yoshikami, president of YCMNet Advisors in Walnut Creek, California, which manages $1 billion.

Great business model if you can get it. Get the public to put up acquisition capital so the rich can get richer.

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