The Cleveland-based regional bank is apparently working with Morgan Stanley to shop its Allegiant Funds, which has about $30 billion under management. National City has been hit especially hard by the falling housing market and has lost money in three straight quarters due to its exposure to mortgage and home equity lending. The bank said it has more than $12 billion in excess short-term liquidity.
Other banks such as Fifth Third Bancorp and KeyCorp, which are also based in Ohio, are thought to be reviewing the options for their asset management divisions, according to the Journal.
Besides the asset management business, Fifth Third could also
sell a stake in its payment processing business, Fifth Third Processing
Solutions.
Fifth Third CEO Kevin Kabat did not indicate a sale was imminent.
In a conference call Tuesday with investors to discuss earnings, Kabat
reportedly said the company "can't and won't" comment in any great
detail on what businesses are or are not for sale other than to say
"that the decision to sell assets is strategic and contemplated for
some time."
- Donna Block
