CEO Payday Draws S.C. Governor's Ire

"The terms of Mr. Whittle's retirement are consistent with the provisions of his employment agreement, which were disclosed to both the public and the banking regulators," Smith says in the statement. "The retirement reflected his 20-year career with TSFG as its founder and only chief executive officer. Moreover, TSFG did not have the right to unilaterally limit Mr. Whittle's rights embodied in his long-standing agreement with the company."

Nine of the nation's largest banks, including Bank of America (BAC Quote), JPMorgan Chase (JPM Quote), Citigroup (C Quote) and Wells Fargo (WFC Quote), agreed to an initial round of investments two weeks ago.

A host of regional banks, including PNC Financial Services (PNC Quote) and KeyCorp (KEY Quote), have disclosed investments this week. Banks have until Nov. 14 to apply and, if accepted, agree to join the program.