national city next?

[dmarc117]

National City drops more than half as market wonders who's next - Reuters.com (1.73 -1.98) -Update-

Reuters.com reports the co dropped more than half on Monday as investors wondered which regional bank might need a merger partner as the sector suffered what analysts called a deepening crisis of confidence. The stock fell more than 25 percent on Friday. "There are a number of regional banks which may need help, either because of the weakening mortgage market or simply because of the weakening economy," said Michael Sheldon, chief market strategist, RDM Financial Group. "I think it's absolutely a crisis of confidence, there's some real weakness in the economy," he said. "But the larger issue is simply a paralysis of the economy or lack of confidence in financial institutions."

 

[dmarc117]

National City is far better capitalized than Wachovia and other large U.S. banks - Reuters (1.63 -2.07) -Update-

 

Says its tier 1 capital ratio is the highest of all large U.S. banks at 11.1%. Says on average its tier 1 capital ratio is about 25% higher than at other regional and national banks. Says has no plan, intention, or need to raise additional capital, or the need to undertake any particular transaction because of insufficient capital.