April 21, 2008 – 5:46 am

After raising $2 billion this year already through new offerings of preferred stock, hybrid-trust preferred stock and convertible debt National City is seeking up to $7 billion more:

National City Corp., Ohio’s biggest bank and subprime lender, may get $6 billion to $7 billion from a group led by Corsair Capital LLC to bolster its balance sheet, said a person with knowledge of the situation.

The investors will pay $5 a share.  On Friday the shares closed at $8.33. The only problem I see for investors is that the shares are almost certain to fall under $5,  just like so many other crisis-induced buyouts. We will not debate the matter since we need only watch and see — that is what we are here for.

  1. 4 Responses to “National City Looking For a $7 Billion Fix”

  2. The way I see it, Nat City is acting as though it will be around forever judging by its “Customer Retention Center” located in Grandville, MI. I recently witnessed 10 loan officers who are making (each) more than $100K per year smiling and dialing. In fact, if they do not make at least $100k in 12 months they are canned. One guy I know made $22,000 last months and another made $35,000 last month (he owns a Boxster, 911, and a Mercedes and he has only worked there for 13 months)!!! I know a lot of loan officers who are dying to get a job in that retention center because the money is so incredibly fantastic. So it seems as though Nat City is still paying quite well these days, at least in Grandville, MI.

    By Jeff Poppen on Apr 21, 2008

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