Senator Sherrod Brown

WASHINGTON, D.C. – In response to National City Bank’s failure to qualify for federal rescue funds, and growing concern about market consolidation as funds are allocated, Ohio Senator Sherrod Brown today spoke with Interim Assistant Secretary of the Treasury for Financial Stability Neel Kashkari on behalf of Ohio families.

In addition to today’s call, Brown sent Kashkari a set of detailed questions about how about the Emergency Economic Stabilization Act (EESA) is being implemented, about the National City decision, future bank buyouts.

“When Secretary Paulson appeared before the Banking Committee on September 23rd to make the case for the EESA, he did not indicate that the nation suffered from too many banks,” Brown wrote. “He argued that we faced a lending crisis.”

According to recent news stories, National City Bank, which had been struggling financially due to significant involvement in the subprime loan market, agreed to a buyout by Pittsburgh-based PNC bank after being denied rescue funds.

This week, banks across the country that were awarded rescue funds announced plans to pursue acquisition opportunities in the market.

In the set of ten questions to Kashkari, Brown asked for an detailed explanation of the process the U.S. Treasury Department used in determining National City’s ineligibility for funds. He also asked that Treasury disclose its role in awarding PNC funds as well as any involvement in facilitating the buyout.

“As a native of Ohio, I know you can appreciate how the people of my state find it incomprehensible…to eliminate an untold number of jobs and bring the end of an institution that has served Ohioans for more than a century and a half,” Brown wrote.

Brown also asked for clarification by Treasury of its understanding EESA’s purpose, as well the disclosure of any safeguards to ensure taxpayer dollars are not used to facilitate unfettered market consolidation.

“Treasury must insist that banks not go on a buying spree,” Brown wrote, “which would do nothing to address the crisis we face.”

***Attention news editors – a copy of the letter and set of questions included to the right: