Nat City Shares Tumble as Worries Mount - TheStreet

Nat City Shares Tumble as Worries Mount

The bank's stock had been halted for trading, but is down more than 20% after resuming. National City says it isn't seeing unusual depositor or creditor activity.
Publish date:

Shares of

National City


plunged before being halted Monday around midsession as questions swirled about the health of the Cleveland-based bank.

The bank issued a statement on its Web site that read: "National City is experiencing no unusual depositor or creditor activity. As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital ratios among large banks."

The last trade before the halt was logged at 11:53 a.m. EDT for $3.20, a drop of 27.5%, or $1.22, but then picked up again at roughly 12:10 p.m. EDT. The stock continued to fall after reopening and was recently at $3.07.

The action in National City comes on the heels of fellow bank



takeover by federal regulators

Friday and worries last week about

Fannie Mae



Freddie Mac



A representative for National City had no information regarding the trading activity.