RobertB
January 2nd, 2008, 06:19 PM
Banks' Subprime New Year
Liz Moyer 01.02.08, 4:00 PM ET
Wall Street's Ugly Year
It's a brand new year, but the same mess of troubles for big U.S. banks, as the credit crunch continues to plague lenders.
On the first business day of 2008, Cleveland's National City (nyse: NCC - news - people ) slashed its dividend in half, shut down more mortgage operations and said it was going to fire 900 more people, all "to help meet the challenges ahead, and to continue as a strong competitor in the financial services industry," says Chief Executive Peter Raskind.
National City has struggled with rising credit costs and a mortgage business in rapid decline. Like many other banks, both on Wall Street and Main Street, it's been forced to shore up capital eroded by losses. The bank will issue more securities to boost its regulatory capital levels.
http://www.forbes.com/home/business/2008/01/02/national-city-bank-biz-wallst-cx_lm_0102nationalcity.html
Liz Moyer 01.02.08, 4:00 PM ET
Wall Street's Ugly Year
It's a brand new year, but the same mess of troubles for big U.S. banks, as the credit crunch continues to plague lenders.
On the first business day of 2008, Cleveland's National City (nyse: NCC - news - people ) slashed its dividend in half, shut down more mortgage operations and said it was going to fire 900 more people, all "to help meet the challenges ahead, and to continue as a strong competitor in the financial services industry," says Chief Executive Peter Raskind.
National City has struggled with rising credit costs and a mortgage business in rapid decline. Like many other banks, both on Wall Street and Main Street, it's been forced to shore up capital eroded by losses. The bank will issue more securities to boost its regulatory capital levels.
http://www.forbes.com/home/business/2008/01/02/national-city-bank-biz-wallst-cx_lm_0102nationalcity.html