[CitizensTruth] ARTICLE-Bailout Bank Execs get payouts

[Walterb306 at cs.com]

All,

Raiders of the lost accounts...

Great resource.  Thank goodness Propublica is compiling the data and making 
it available.

Beverley



Execs Get Payouts
by Paul Kiel, ProPublica - June 11, 2009 1:38 pm EDT
http://www.propublica.org/ion/bailout/item/bailout-bank-execs-get-payouts-61
1

 
ProPublica Images/Krista Kjellman
Yesterday, the Treasury Department released new rules [1]  on how much 
banks that received TARP money can pay their executives. Among the rules is one 
that prohibits golden parachutes - defined as any payment to a departing 
exec simply because the exec is leaving. But an examination of public filings 
shows that a number of executives at banks that received TARP funds have 
received large payments just for resigning. It's unclear if the new rules will 
apply retroactively.
Tune in this afternoon to catch a segment we did with public radio's 
Marketplace [2] that focuses on a few of these. Below is a rundown of these execs 
and the payouts they received.

Name    Bank Bailout    Exec Payout
Jack Gibson, CEO    Hampton Roads Bankshares
$80,347,000 In addition to covering Gibson's country club costs, the bank 
awarded Gibson $1.3 million for "consulting duties" upon his retirement. The 
bank says Treasury approved the arrangement. 

Lisa Binder, President and COO  Associated Banc-Corp 
$525,000,000    Binder received $1.65 million in exchange for agreeing not 
to compete with the Wisconsin bank for one year. The bank said the payment 
was not a golden parachute and that it had consulted with outside counsel to 
make sure it complied with the law. 

Mack Whittle, CEO   South Financial Group 
$347,000,000    Whittle was originally scheduled to retire as late as Dec. 
30, 2008, but he retired on Oct. 24, the same day the bank applied for TARP 
funds. As such, his retirement was not affected by the golden parachute 
limits, allowing him to keep at least $2 million more than he would have been 
able to. His total retirement package totaled $18 million. Treasury awarded 
the bank TARP funds on Dec. 5. After shareholder lawsuits objecting to the 
arrangement, the bank reached a settlement that among other things, reformed 
oversight of compensation at the bank. A bank spokesperson said "the matter is 
settled and we are moving forward." 

Thomas Hoaglin, President and CEO   Huntington Bancshares
$1,398,071,000  Hoaglin was owed as much as $2.6 million for retiring in 
February, according to a bank disclosure. The bank did not return our calls 
seeking comment.

David Edson, Executive Vice President   Umpqua
$214,181,000    Edson was owed at least $387,000 for retiring in March, 
according to a bank disclosure. Umpqua General Counsel Steve Philpott told us 
the payments were made subject to the bank's employment agreement with Edson, 
and that it was "fully compliant" with its agreement with the Treasury 
Department.

Scott McBrair, Executive Vice President Webster Financial
$400,000,000    McBrair received more than $420,000 in severance payments, 
according to a public filing. The bank did not respond to our requests for 
comment. 

Robin VanCastle, CFO    Taylor Capital
$104,823,000    VanCastle received $270,000 upon her resignation in March, 
according to a public filing. Bank spokesman Mark Nystuen declined to 
comment on the arrangement. 

Robert New, CEO F.N.B. Corporation
$100,000,000    New will receive $990,000 in severance payments, according 
to the February severance agreement. The bank also agreed to purchase New's 
house for $748,000, the price he paid for it two years prior. The bank did 
not return our calls seeking comment.




http://bailout.propublica.org/main/list/index
Latest Bailouts
$650 billion of taxpayer money has been allocated or promised to 608 
companies and 12 programs. 
Jun 5, 2009 Covenant Financial Corporation 
Purchase - Preferred Stock w/ Exercised Warrants    $5 million
Jun 5, 2009 First Trust Corporation 
Purchase - Subordinated Debentures w/ Exercised Warrants    $18 million
Jun 5, 2009 OneFinancial Corporation 
Purchase - Subordinated Debentures w/ Exercised Warrants    $17.3 million
Jun 3, 2009 General Motors 
Debt Obligation, Equity Interest    $30.1 billion
May 29, 2009    Community Bank Shares of Indiana, Inc. 
Purchase - Preferred Stock w/ Warrants  $19.5 million
May 29, 2009    American Premier Bancorp 
Purchase - Preferred Stock w/ Exercised Warrants    $1.8 million
May 29, 2009    CB Holding Corp. 
Purchase - Preferred Stock w/ Exercised Warrants    $4.1 million
May 29, 2009    Citizens Bancshares Co. 
Purchase - Preferred Stock w/ Exercised Warrants    $25 million
MORE:
Bailout Recipients
Updated: Jun 10, 2009  |  New: See the lists for banks that have returned 
the bailout money (http://bailout.propublica.org/main/list/refunds )and the 
19 companies undergoing "stress tests." 
(http://bailout.propublica.org/main/list/stress_tests ),
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