PNC Financial Services Group, Inc. is an American financial services corporation, with assets (as of December 31, 2011) of approximately $271.2 billion. PNC operations include a regional banking franchise operating primarily in nineteen states and the District of Columbia, specialized financial businesses serving companies and government entities, and asset management and processing businesses.
PNC is the fifth largest bank in the United States (total branches), sixth largest bank by deposits in the United States, sixth largest by total assets, and the third largest bank off-premise ATM provider. PNC is based in Pittsburgh.
Louisville is the largest city in the Commonwealth of Kentucky and the state's only 1st-class city. In 2010, Louisville proper was the 27th-largest city in the United States. Located beside the Falls of the Ohio, the only major obstruction to river traffic between the Ohio River and the Gulf of Mexico, Louisville first grew as portage site. The city was the headquarters of the Louisville and Nashville Railroad, which grew into a 6,000-mile (9,700 km) system across 13 states. Today, Louisville is best known as the location of the Kentucky Derby, the first of the three annual races that make up the Triple Crown of Thoroughbred Racing. It is the home of the University of Louisville and three of Kentucky's six 500Fortune companies. Its airport is also the site of UPS's worldwide air hub.
Since 2003, the city's borders have been coterminous with those of Jefferson County because of a city-county merger. The city's total consolidated population at the 2010 census was 741,096. However, the balance total of 602,011 excludes other incorporated places and semi-autonomous towns within the county and is the population listed in most sources and national rankings. As of the 2012, the Louisville metropolitan area (MSA) had a population of 1,334,872 ranking 42nd nationally. The metro area includes Louisville-Jefferson County and 12 surrounding counties, eight in Kentucky and four in Southern Indiana. The Louisville Combined Statistical Area, having a population of 1,451,564, includes the MSA, Hardin County and Larue County in Kentucky, and Scott County, Indiana.
The United States is a country in the Northern Hemisphere, Western Hemisphere, and the Eastern Hemisphere. It consists of forty-eight contiguous states in North America, Alaska, a peninsula which forms the northwestern most part of North America, and Hawaii, an archipelago in the Pacific Ocean. There are several United States territories in the Pacific and Caribbean. The term "United States", when used in the geographical sense, means the continental United States, Alaska, Hawaii, Puerto Rico, Guam, and the Virgin Islands of the United States. The country shares land borders with Canada and Mexico and maritime (water) borders with Russia, Cuba, and the Bahamas in addition to Canada and Mexico.
The financial crisis of 2007–2008, also known as the Global Financial Crisis and 2008 financial crisis, is considered by many economists the worst financial crisis since the Great Depression of the 1930s. It resulted in the threat of total collapse of large financial institutions, the bailout of banks by national governments, and downturns in stock markets around the world. In many areas, the housing market also suffered, resulting in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a downturn in economic activity leading to the 2008–2012 global recession and contributing to the European sovereign-debt crisis. The active phase of the crisis, which manifested as a liquidity crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three hedge funds citing "a complete evaporation of liquidity".
The bursting of the U.S. housing bubble, which peaked in 2006, caused the values of securities tied to U.S. real estate pricing to plummet, damaging financial institutions globally. The financial crisis was triggered by a complex interplay of policies that encouraged home ownership, providing easier access to loans for subprime borrowers, overvaluation of bundled sub-prime mortgages based on the theory that housing prices would continue to escalate, questionable trading practices on behalf of both buyers and sellers, compensation structures that prioritize short-term deal flow over long-term value creation, and a lack of adequate capital holdings from banks and insurance companies to back the financial commitments they were making. Questions regarding bank solvency, declines in credit availability and damaged investor confidence had an impact on global stock markets, where securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during this period, as credit tightened and international trade declined. Governments and central banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional bailouts. In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009. In the EU, the UK responded with austerity measures of spending cuts and tax increases without export growth.
The U.S. subprime mortgage crisis was a set of events and conditions that led to a financial crisis and subsequent recession that began in 2008. It was characterized by a rise in subprime mortgage delinquencies and foreclosures, and the resulting decline of securities backed by said mortgages. These mortgage-backed securities (MBS) and collateralized debt obligations (CDO) initially offered attractive rates of return due to the higher interest rates on the mortgages; however, the lower credit quality ultimately caused massive defaults. Several major financial institutions collapsed in September 2008, with significant disruption in the flow of credit to businesses and consumers and the onset of a severe global recession.
There were many causes of the crisis, with commentators assigning different levels of blame to financial institutions, regulators, credit agencies, government housing policies, and consumers, among others. A proximate cause was the rise in subprime lending. The percentage of lower-quality subprime mortgages originated during a given year rose from the historical 8% or lower range to approximately 20% from 2004 to 2006, with much higher ratios in some parts of the U.S. A high percentage of these subprime mortgages, over 90% in 2006 for example, were adjustable-rate mortgages. These two changes were part of a broader trend of lowered lending standards and higher-risk mortgage products. Further, U.S. households had become increasingly indebted, with the ratio of debt to disposable personal income rising from 77% in 1990 to 127% at the end of 2007, much of this increase mortgage-related.
The National City acquisition by PNC was the deal by PNC Financial Services to acquire National City Corp. on October 24, 2008 following National City's untenable loan losses during the subprime mortgage crisis. The deal received much controversy due to PNC using TARP funds to buy National City only hours after accepting the funds while National City itself was denied funds, as well as civic pride for the city of Cleveland, Ohio, where National City was based.