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.
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Shares of

National City

(NCC)

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

IndyMac's

(IMB)

takeover by federal regulators

Friday and worries last week about

Fannie Mae

(FNM)

and

Freddie Mac

(FRE)

.

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