National City plunges amid broad bank fears

[LogansPapa]

By JOE MILICIA
Associated Press Writer


CLEVELAND (AP) - Shares of National City Corp. plunged Monday 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 company 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 to their lowest level in decades before rebounding slightly, and were down 22 percent at $3.45 in mid-afternoon trading.

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.

National City was among many bank stocks to tumble three days after the government stepped in to save IndyMac.

http://www.breitbart.com/article.php...show_article=1

[SaintLouieWoman]

By JOE MILICIA
Associated Press Writer


CLEVELAND (AP) - Shares of National City Corp. plunged Monday 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 company 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 to their lowest level in decades before rebounding slightly, and were down 22 percent at $3.45 in mid-afternoon trading.

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.

National City was among many bank stocks to tumble three days after the government stepped in to save IndyMac.

http://www.breitbart.com/article.php...show_article=1

Hope there's no problem with the FDIC, have funds at National City. :eek:

[lacarnut]

Hope there's no problem with the FDIC, have funds at National City. :eek:

Not to worry. FDIC covers amounts up to 100k

Gloom and doom, gloom and doom. We are far away from the 1,600 banks that closed from 1980 to 1994.

[LogansPapa]

Gloom and doom, gloom and doom. We are far away from the 1,600 banks that closed from 1980 to 1994.

Well lets examine that figure: How many were of the magnitude of this institution and were immediately claimed "safe" by the federal government, on a weekend? When did that ever happen before?

[Cold Warrior]

Don't worry! Georgie's coming on just about now and I'm sure he'll tell us that he's been "workin' hard" on the problem.

[LogansPapa]

Bush calls on Congress to pass housing, energy
Jul 15 10:45 AM US/Eastern / By TERENCE HUNT / AP White House Correspondent

WASHINGTON (AP) - President Bush urged lawmakers on Tuesday to move quickly in putting into force legislation designed to help prop up mortgage giants Fannie Mae and Freddie Mac while declaring the nation's financial system to be "basically sound."

He also called on the Democratic-run Congress to follow his example and lift a ban on offshore drilling to help increase domestic oil production.

"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Bush told a White House news conference.

Bush said the two troubled mortgage companies play a central role in the nation's housing-finance system and that government action to help them were not bailouts, since the two would remain shareholder-owned companies.

"I don't think the government ought to be involved in bailing out companies," Bush said.

Amid soaring gas prices, the toughest real estate market in decades, falling home prices and financing that's harder to come by, Bush said: "It's been a difficult time for many American families."

(when in doubt, reiterate the obvious)

[Cold Warrior]

Georgie cited , as part of his "good news," retail sales being up, implying it was a result of the stimulus checks. He also indicated that more spending was coming as a result of these checks (one wonders how long it takes to spend a few hundred bucks?). What he didn't speak of was the "buying down" trend in that the retailers with higher sales are all the cheap crap super stores.

[lacarnut]

Well lets examine that figure: How many were of the magnitude of this institution and were immediately claimed "safe" by the federal government, on a weekend? When did that ever happen before?

Has this bank closed? Are deposits safe?

[linda22003]

Georgie cited , as part of his "good news," retail sales being up, implying it was a result of the stimulus checks. He also indicated that more spending was coming as a result of these checks (one wonders how long it takes to spend a few hundred bucks?). What he didn't speak of was the "buying down" trend in that the retailers with higher sales are all the cheap crap super stores.

Now, now, CW; the Wall Street Journal says you might want to start visiting those cheap crap super stores.

:D
http://online.wsj.com/article/SB1215...hpp_us_leisure

[lacarnut]

Now, now, CW; the Wall Street Journal says you might want to start visiting those cheap crap super stores.

:D
http://online.wsj.com/article/SB1215...hpp_us_leisure

Things are so getting so bad that he might have to start buying booze at those cheaper stores; Georgie has screwed up everything that many of those hot shots in NYC will not be able to afford those 1st class whorehouses (escort services).