This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Treasury Probes Bank Payout to Ex-CEO

Updated from 12:57 p.m. EST

The Treasury Department says it is reviewing official concerns about the timing and circumstances of a more than $12 million retirement package awarded the ex-CEO of South Carolina's largest bank.

The acknowledgement comes several days after The South Financial Group (TSFG) said it had received preliminary approval for a $347 million investment from the Troubled Asset Relief Program, or TARP, which puts restrictions on pay for executives of banks that receive investments. first reported ex-CEO Mack Whittle's earlier-than-expected retirement on Oct. 29, prompting South Carolina Gov. Mark Sanford, a Republican, to request in a Nov. 7 letter that Treasury investigate the situation.

"Treasury has received the letter and we are currently reviewing it," wrote spokeswoman Jennifer Zuccarelli, in an email message to .

Zuccarelli did not respond to follow-up questions from asking whether the Treasury Department was aware of Sanford's letter when it granted preliminary approval to the bank for the investment, or whether it was aware of another letter raising similar concerns sent by Rep. Bob Inglis (R., S.C.). The South Financial Group announced the government's approval of the investment on Nov. 14.

"We get lots of correspondence," Zuccarelli said in an initial telephone conversation on Wednesday when asked about the letter.

In a letter to Treasury dated Nov. 12, Whittle defended his retirement package, pointing out it had been negotiated before the TARP was even in existence. He expressed a willingness to modify the arrangement if it jeopardized the bank's application for funds.

"If the only item standing in the way of TSFG's receipt of a TARP capital allocation is my retirement agreement, then I am willing to discuss with the Treasury and the company the aspects of my agreement that are in excess of the current TARP limitations and in good faith mutually agree to something that allows the TARP investment to be made," Whittle wrote.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
BAC $18.12 -0.22%
C $58.57 -0.51%
JPM $68.83 -0.16%
KEY $14.91 -0.33%
PNC $98.43 -0.12%


Chart of I:DJI
DOW 17,734.36 -17.03 -0.10%
S&P 500 2,106.72 -1.85 -0.09%
NASDAQ 5,119.4730 +7.74 0.15%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs