National City cuts quarterly dividend; shuts down wholesale mortgage unit

Wed. January 02, 2008; Posted: 10:34 AM

BOSTON, Jan 02, 2008 (Thomson Financial via COMTEX) -- NCC | charts | news | PowerRating -- National City Corp. Wednesday cut its quarterly dividend to 21 cents from 41 cents a share, and said that 900 jobs would be affected by its decision to shutter its wholesale mortgage division.

The new dividend is payable Feb. 1, to shareholders of record Jan. 14.

"Today's environment requires aggressive steps to overcome the near-term challenges facing the industry and our company, while positioning our businesses to continue delivering solid performance," the company said.

In addition, National City said it intends issue non-dilutive, Tier 1 capital in the first quarter of 2008. The company has retained Goldman Sachs as capital advisor.

With respect to its mortgage operations, National City announced that it has shut down its wholesale mortgage division, cutting 900 staffing positions.

The company said it now expects mortgage originations in 2008 of about $15 billion to $20 billion.

Shares of the Cleveland-based financial holding company fell 3.2% to $15.94. Casey Logan cl/tk1

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For full details on National City Corp (NCC) click here. National City Corp (NCC) has Short Term PowerRatings of 4. Details on National City Corp (NCC) Short Term PowerRatings is available at This Link.

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