June 6, 2008 – 10:03 am

National City is getting one last chance to fly right. The bank, which has been under the gun, is also under the scrutiny of federal regulators, according to the Wall Street Journal.

National City Corp.’s banking unit, which has been buffeted by rising bad loans, has recently entered into a “memorandum of understanding” with federal regulators, effectively putting the bank on probation.

The newspaper said terms of the confidential agreement weren’t known. However, regulators usually urge banks to maintain adequate capital and improve lending standards.

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