Table: PNC's Regulatory Troubles Mount
PNC puts $762 million in bad loans and investments into three off-balance-sheet units. The Federal Reserve Bank of Cleveland asks for details.
The Fed tells PNC to consolidate the entities. Six days later, PNC announces 2001 earnings without the changes. Two weeks later, it cuts earnings per share by 38%. The stock falls 10%.
PNC amends its financials, cutting EPS by 52% from its initial figure.
The SEC issues a cease-and-desist order, saying PNC "made materially false" disclosures. Joseph C. Guyaux, CEO of PNC's Regional Community Bank, takes over as president from James E. Rohr, who remains chairman and CEO. Several senior execs and directors leave.
Data: Securities & Exchange Commission, PNC Financial Services Group Inc., BusinessWeek