The Cleveland-based bank, one of the 10 largest U.S. banks, announced Wednesday it will eliminate 900 jobs as it stops offering mortgages through brokers, and it plans to raise more capital to cope with weakened credit markets. National City has hired Goldman, Sachs & Co. as a capital adviser.
In the second half of 2007, U.S. banks reportedly raised $83 billion in capital -- not including investments from sovereign wealth funds -- notes Dealogic. Sovereign wealth funds, which are pools of capital controlled by foreign governments, have reportedly invested another $40 billion in U.S. banks, according to the Financial Times. Some of the banks raising capital last year included Citigroup Inc., Countrywide Financial Corp., Merrill Lynch & Co. and others. - Matthew Wurtzel
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Thsi is only the beginning.