The excitement is killing me
I've been banking at National City for years. Shall we place bets on how long it is before the FDIC steps in?
Fifth Third stock drops; National City issues statement
The failure Friday of a national mortgage bank took its toll on regional bank stocks Monday, with Fifth Third Bancorp's shares down more than 10 percent before heading back up, and National City Corp. seeking to head off rumors after its stock fell 27 percent.
The market punished bank stocks Monday on worries about their financial stability. Regulators took over Pasadena, Calif.-based mortgage lender IndyMac Bancorp Inc. (NYSE: IMB) on Friday, making it the third-largest bank failure in U.S. history.
National City (NYSE: NCC) issued a news release stating that it is "experiencing no unusual depositor or creditor activity" after trading was halted on its stock Monday morning.
The Cleveland-based parent of National City Bank has had major problems with bad loans and struggled with capital levels, but National City said the $7 billion in capital it recently raised gives it one of the best capital-to-asset levels of any large U.S. bank.
National City, in a separate release, also set a special shareholders meeting for Sept. 15, to vote on the equity investment deal that is providing the capital.
Trading resumed later on National City's stock, which rallied after dropping by 27 percent in the morning. Shares were down 9 cents, or 21 percent, to $3.50 by midafternoon. Fifth Third's (NASDAQ: FITB) stock fell 10.5 percent in early trading, but by midafternoon it was down 7.7 percent, or 92 cents, to $11.56.
The two banks weren't alone - the KBW Bank Index, a gauge of bank stocks, was down 7 percent on Monday.
The declines also followed last week's news that mortgage financiers Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) were in trouble. But the U.S. Treasury and Federal Reserve said over the weekend they would step in and prop up the two lenders, if needed.
I don't know what to think about all of this.
In GOOD news: I should hear about whether my mortgage is approved by the end of this week or the beginning of next. I'm outta here on Friday to go see a movie in New York with idlerat.
Fifth Third stock drops; National City issues statement
The failure Friday of a national mortgage bank took its toll on regional bank stocks Monday, with Fifth Third Bancorp's shares down more than 10 percent before heading back up, and National City Corp. seeking to head off rumors after its stock fell 27 percent.
The market punished bank stocks Monday on worries about their financial stability. Regulators took over Pasadena, Calif.-based mortgage lender IndyMac Bancorp Inc. (NYSE: IMB) on Friday, making it the third-largest bank failure in U.S. history.
National City (NYSE: NCC) issued a news release stating that it is "experiencing no unusual depositor or creditor activity" after trading was halted on its stock Monday morning.
The Cleveland-based parent of National City Bank has had major problems with bad loans and struggled with capital levels, but National City said the $7 billion in capital it recently raised gives it one of the best capital-to-asset levels of any large U.S. bank.
National City, in a separate release, also set a special shareholders meeting for Sept. 15, to vote on the equity investment deal that is providing the capital.
Trading resumed later on National City's stock, which rallied after dropping by 27 percent in the morning. Shares were down 9 cents, or 21 percent, to $3.50 by midafternoon. Fifth Third's (NASDAQ: FITB) stock fell 10.5 percent in early trading, but by midafternoon it was down 7.7 percent, or 92 cents, to $11.56.
The two banks weren't alone - the KBW Bank Index, a gauge of bank stocks, was down 7 percent on Monday.
The declines also followed last week's news that mortgage financiers Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) were in trouble. But the U.S. Treasury and Federal Reserve said over the weekend they would step in and prop up the two lenders, if needed.
I don't know what to think about all of this.
In GOOD news: I should hear about whether my mortgage is approved by the end of this week or the beginning of next. I'm outta here on Friday to go see a movie in New York with idlerat.