South Financial Cleared for TARP Funds

The U.S. Treasury gave final approval to a $347 million investment in South Carolina's largest bank, leaving unanswered questions surrounding the generous retirement package awarded to its former CEO.

In late October The South Financial Group (TSFG Quote) announced CEO Mack Whittle was moving up the date of his retirement by two months as it was applying for a federal investment through the Troubled Assets Relief Program, or TARP, which contains provisions aimed at eliminating golden parachutes.

South Carolina Gov. Mark Sanford has written twice to Treasury Secretary Henry Paulson, asking him to look into the issue, which has also attracted at least two shareholder lawsuits and another letter to Paulson from Rep. Bob Inglis (R., S.C.). Sanford sent the second letter Thursday, asking if Treasury was acting on his request. ...