National City Corp. Story Unlikely to Have Happy Ending

04-18 ||  Readers: 23

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Terence ChannonTerence Channon submits:

After a big run up, it is not uncommon for a stock to surrender some of its gains. However, to surrender all of the gains racked up in the past 17 years is a little more dramatic. This has been the story of National City Corporation (NYSE: NCC). The 163 year old bank that employs 32,000 is the latest of big name victims in the well publicized financial/credit/subprime mortgage crisis.

While the financial community is digesting the future of NCC, the stock is trading around prices it has not seen since the early 1990s. A 50% reduction in the company’s dividend rate back to 1997 levels was not enough to preserve NCC’s market value and now outside financing is required to keep things going.


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