National City ( NCC ) slumped more than 5% to a 52-week low Wednesday after slashing jobs and its dividend by half to shore up more capital amid a tough mortgage market. The Cleveland-based bank reduced its quarterly dividend by 49% to 21 cents, a move that is "an important step to position the company properly for the future," it said. Nat City also has shut down its entire wholesale mortgage business, but will continue to originate mortgage loans directly to consumers. The move will eliminate about 900 positions, the company said on Wednesday. "We remain committed to the mortgage business," Chairman and CEO Peter Raskind said in a statement. "However, it is clear that origination volumes will be lower going forward, and we are configuring our mortgage business to operate profitably in that environment. "With conditions expected to be quite challenging in 2008, the actions we have taken to date better position us to navigate through the environment and to capitalize on the many opportunities ahead," he added. In addition, Nat City intends to raise capital in the first quarter and has hired Goldman Sachs ( GS) as an adviser. The actions will "accelerate" its previously stated plans to increase capital ratios to the high end of their targeted ranges, it said. Nat City expects tangible common equity to range between 5% and 6% and Tier 1 risk-based capital in the range of 7% and 8%.