National City to cut jobs, dividend
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From Times Wire Reports
National City Corp., Ohio’s largest bank, will eliminate 900 more jobs and halve its dividend, the first reduction since the payout began in 1935. Its shares fell 5.3% in New York trading.
The company plans to raise capital and has hired Goldman Sachs Group Inc. as its advisor, Cleveland-based National City said. It is halting home loans through brokers and firing the employees in that business, bringing total cuts to 3,400, or about 10% of its workforce, in one year.
National City is still reeling from the housing slump a year after selling its sub-prime mortgage unit to Merrill Lynch & Co.
The bank will pay 21 cents a share Feb. 1 to shareholders of record as of Jan. 14. The dividend was previously 41 cents a share.
