Earlier Retirement Date Lets CEO Of Bailed-Out Bank Pocket $18 Million

[Idealism]

Source: Talking Points Memo

Earlier Retirement Date Lets CEO Of Bailed-Out Bank Pocket $18 Million
By Zachary Roth - November 20, 2008, 11:57AM

Pro Publica notes the remarkable tale of Mack Whittle, the CEO of South Financial Group, a South Carolina bank.

Whittle founded South Financial back in 1986, and under his leadership it grew to be the largest bank in the state. It expanded into North Carolina and Florida, eventually boasting $13.7 billion in total assets and 180 branch offices.

But Florida was one of the hardest hit states when the housing market crashed, and South Financial suffered. In early 2007, the bank's stock was above $26. Today it's at about $3.50. In the third quarter this year, South Financial posted a $25 million net loss.

In early September, Whittle announced that he planned to retire by year's end. A few weeks later, the financial crisis struck, and Congress soon passed a $700 billion bailout bill for banks. South Financial quickly announced that it would apply for bailout money.

Then, in a federal regulatory filing dated October 28, the bank quietly announced that Whittle had in fact stepped down as CEO a day earlier. No reason was given, and Whittle's successor as CEO had not yet been named. In a conference call with analysts held just six days earlier, no hint had been given of Whittle's imminent departure.



Read more: http://tpmmuckraker.talkingpointsmemo.com/2008/11/earlier_retirement_date_lets_c.php

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And remind me again why we can't give the auto industry help, yet these jackasses get hundreds of millions from us?

[2Design]

1. BFEE and congress gave freebies to their pals while mainstreet suffers n/t

[Lance_Boyle]

2. So it makes everything better if we give the auto industry jackasses

their golden parachutes, too?

The bottom line with Detroit is that even if we banish the CEOs to Siberia and take their last 3 years' pay, the amount saved is not even a drop in the bucket next to their obligations to the Union (retirees and present workers). Punish the CEOs and the rest of management, sure. But that's not even a grain of sand in the world of hurt those companies face. They need bankruptcy to get out from under their debt obligations. And that's going to be bad for the workers. There's no way around it. Management has created an unsustainable business model, and the UAW has demanded and won an unsustainable level of compensation for the employees. Everyone's gonna get hurt.

[Idealism]

7. Labor accounts to 10% of total cost built in to a domestically produced vehicle

Its not the unions

[aquart]

3. "Lets"? I've had enough of this "letting."

[OhioChick]

4. What a damn disgrace.

I'm sure that taxpayers would've rather had their tax dollars used to bail out the Big 3.

[sarcasmo]

5. Billions for Banks, Zero for Unions.

[progressoid]

6. See? the economy is strong!!

[sarcasmo]

8. Kick back to the top, this is everything wrong with this country. GREED!

[Hubert Flottz]

9. The SPLURGE is working for the GOPer's friends and donors.

[SCantiGOP]

10. more to the story

Had he not resigned until two weeks later, he would have come under the restrictions in the bailout bill. If you really want to be outraged, those restriction would have prevented him from getting the $18 million (which was in his contract with the board and he could have sued for it). He would have been entitled to only...... $15.3 million. So, the bailout bill 'protection' is a bunch of crap.

[newtothegame]

11. This is disgusting...

But at least it was the guy's own business. I'm more disgusted by these CEO's who come in from the outside, work for a year, run the business into the ground, and collect a huge bonus.