National City Corp Next?
September 30, 2008
It goes without saying that when a bank stock loses over 95% of its share value in just over a year that the bank is facing some trouble. National City Corporation (NCC) is being openly discussed by banking analysts as the next bank with their head on the chopping block. It appears that after the consecutive failures at Washington Mutual Bank and Wachovia Bank in less than a week, that the market is taking a hard look at National City Corp. which fell to $1.25 a share during Monday's trading falling over 50% in one day.
National City spokeswoman Kelly Wagner Amen said the stock decline was a response to problems at other large national banks such as Wachovia and Washington Mutual. "We are far better capitalized than Wachovia and other national banks," Amen said. Some market analysts agreed rating the depressed stock of National City Corp at "outperform". However, the recent trend of bank failures and/or bank takeovers indicates that depositors at National City Bank should be very careful about keeping their deposits below the $100,000 insurance limit.