[Southsider2k12]

I am posting this because it is a bank here in town...

http://www.post-gazette.com/pg/08197/897022-28.stm

National City plunges amid broad bank fears
Tuesday, July 15, 2008
By Joe Milicia, The Associated Press

CLEVELAND -- Shares of National City Corp. plunged yesterday amid broad fears about the health of the nation's regional banks, and the company was forced to issue a statement reassuring investors of its soundness.

The Cleveland-based bank, which has 3,000 employees in Western Pennsylvania, said it has experienced no unusual depositor or creditor activity and has more than $12 billion in excess short-term liquidity.

Investors have been worried about the solvency of some banks amid the sharp downturn in the mortgage market. Late Friday the government seized IndyMac Bancorp, marking the second-largest failure of a financial institution in U.S. history.

National City has been among those hit hardest by rising mortgage defaults. It recently raised $7 billion in cash to shore up its capital base. The bank said the recent cash infusion has helped it to maintain a strong capital ratio.

Shares of National City fell 65 cents, or 14.7 percent, to $3.77 yesterday. They had reached as low as $2.99 in the day, their lowest level in decades.

The New York Stock Exchange halted trading of National City's shares at 11:52 a.m. because of the bank's pending announcement. Shares resumed trading at 12:10 p.m.

National City spokeswoman Kristen Baird Adams said the statement was meant to quash speculation that "indicated that there was perhaps some kind of unusual activity at National City today." The statement "just reiterated a couple of messages about our capital ratios which are important," she said.

Lana Chan, senior bank analyst for BMO Capital Markets, knew of no specific rumors regarding National City that would cause the stock to plunge.

"It's fears following the failure of IndyMac, the state of Fannie and Freddie and just general concerns that the losses on housing-related credits are increasing," Ms. Chan said. "We're definitely seeing in the second quarter that the losses on the housing side are rising rather rapidly."

She said it was important for National City to reconfirm that it has excess short-term liquidity and strong capital ratios.

"I think with the capital infusion that they recently got, that should be enough to absorb their potential losses," Ms. Chan said.

National City, the nation's 10th largest bank, reported a loss of $333 million in the fourth quarter. It slashed its dividend and reported a $171 million loss in the first quarter.

National City operates about 1,400 bank branches spread mostly across Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri and Pennsylvania.
Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
First published on July 15, 2008 at 12:00 am

[Roger Kaputnik]

How can a bank lose half a bill in 6 months and still be open? I lose a couple of deals and I am going without.

[Michelle]

Not surprised. I've been very unhappy with the NC banking experience.

Credit unions > banks.

[Southsider2k12]

The wife and I have decided to pull our money out. No sense risking it. Not to mention NCB is the worst financial institution I have ever done business with anyways. I think we are switching to Horizon, as they have been great to work with, as we have our car loan through them.

[Roger Kaputnik]

Howsabout a credit union?

[Southsider2k12]

Howsabout a credit union?

Members Advantage is our second choice.

[JHeath]

I'm with Horizon, and we have a second account with a local credit union.

I have to say, I'm very pleased with the service at Horizon. For example, my debit card number was recently stolen. Their fraud department caught it almost immediately...and closed the account before anything serious happened. The folks at the local branch were also very helpful in helping me reorder a new card ASAP, and were instrumental in helping me avoid frustration in dealing with all of it.

I had thought about leaving them once...but after that, I'm staying.

[Michelle]

I'm closing my NCB accounts this week too. Has anyone done business with First Trust CU?

[Roger Kaputnik]

Who are the eligible members?

[Michelle]

Who are the eligible members?

Membership requirements here. But if anyone has a credit union they prefer, please post. My interest in this one is purely proximity.

[Roger Kaputnik]

OMG! I checked out the membership requirements, and the SEGs, and I am the only person in MC NOT eligible to join that CU!