rapidtrends
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- May 25, 2008
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Smoke like this causes a bonfire of depositor fear. That's generally known as a run.
National City Sees No `Unusual' Activity; Shares Fall (Update3)
By Linda Shen
July 14 (Bloomberg) -- National City Corp., whose trading was halted in New York after the stock fell more than 30 percent, said there was ``no unusual depositor or creditor activity'' at the Ohio bank.
The company has enough capital and access to cash, according to a statement today from Cleveland-based National City. The stock declined 65 cents, or 15 percent, to $3.77 at 4:01 p.m. on the New York Stock Exchange after composite trading resumed, and fell as low as $2.99 earlier in the day. The last time the stock sold for less was June 1984.
``As a result of our recent $7 billion capital raise, National City maintains one of the highest Tier 1 regulatory capital ratios among large banks,'' the lender said in the statement. A bank must have a 6 percent capital ratio to be considered well-capitalized.
Investors are speculating about which banks may fail after last week's collapse of IndyMac Bancorp Inc. National City was forced to raise funds earlier this year after its strategy of buying banks in Florida at the height of the real-estate boom backfired.
National City Sees No `Unusual' Activity; Shares Fall (Update3)
By Linda Shen
July 14 (Bloomberg) -- National City Corp., whose trading was halted in New York after the stock fell more than 30 percent, said there was ``no unusual depositor or creditor activity'' at the Ohio bank.
The company has enough capital and access to cash, according to a statement today from Cleveland-based National City. The stock declined 65 cents, or 15 percent, to $3.77 at 4:01 p.m. on the New York Stock Exchange after composite trading resumed, and fell as low as $2.99 earlier in the day. The last time the stock sold for less was June 1984.
``As a result of our recent $7 billion capital raise, National City maintains one of the highest Tier 1 regulatory capital ratios among large banks,'' the lender said in the statement. A bank must have a 6 percent capital ratio to be considered well-capitalized.
Investors are speculating about which banks may fail after last week's collapse of IndyMac Bancorp Inc. National City was forced to raise funds earlier this year after its strategy of buying banks in Florida at the height of the real-estate boom backfired.
