Tuesday, Nov. 11, 2008

Sanford assails financial bailout

Governor ‘suggesting, begging, people to make their voices heard’

Gov. Mark Sanford said Monday taxpayers are being fleeced in the nation’s financial bailout, citing his concerns about the retirement of a South Carolina bank executive.

“Complain to national leaders,” Sanford urged taxpayers during a news conference. “E-mail or phone your elected leaders. I’m suggesting, begging, people to make their voices heard.”

Sanford said the federal government has injected $2.3 trillion into the private markets, leaving taxpayers to foot the bill.

Sanford also voiced concerns about the abrupt retirement of Mack Whittle, chief executive of The South Financial Group.

Whittle was scheduled to retire at year’s end but stepped down earlier this month. Critics said that move protected his $18 million retirement package.

Sanford said that package would have been jeopardized if South Financial, which operates as Carolina First Bank in South Carolina, sought a taxpayer bailout before Whittle’s departure.

South Financial said Friday that it wants from $115 million to $347 million from the government’s bailout fund.

In a letter Friday to U.S. Treasury Secretary Henry Paulson, Sanford wrote: “I’d appreciate you looking into this and seeing if there is anything that can be done to keep each one of the taxpayers I represent from in essence having this $18 million, or other millions like it, plucked from their respective pocketbooks and wallets.”

Whittle remains on the board of South Financial but has no other role at the company, an employee said Monday. The bank did not make a representative available to respond to Sanford’s comments.