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The PNC Financial Services of Pennsylvania has bought the stakes of Ohio's largest bank, National City bank. The merger between the two banks is supposed to create America's fifth largest bank by deposits. According to official of PNC Financial Services, the bank will pay an amount of $5.2 billion to take over National City. The official also informed that US Treasury Department is likely to offer $7.7 billion under its programme designed to take shares in banks. This will help the PNC to finalise the deal with National City bank.
According to chief executive officer of PNC, the immediate funding for the government has created a viable platform for the bank to finance the deal. The global financial break down has affected almost all the sectors and in case of finance and banking also, there is no exception. Over the last few months several banks of US have entered into tie-ups with other banks to maintain their existence in the market. The recent merger of PNC and National City is also the result of on-going financial crisis.
