Posted September 6, 200717 yr Ouch! From cleveland.com National City to lay off 850 more workers Posted by Teresa Dixon Murray September 06, 2007 13:16PM Categories: Breaking News In a new round of layoffs, National City Corp. says it is eliminating about 850 more workers because of ongoing woes in the mortgage industry. The Cleveland-based bank last month said it was cutting nearly 450 jobs in one mortgage division. The bank announced today that the new layoffs are a result of its decision to scale back on loans that don't meet guidelines to be sold to mortgage powerhouses like Fannie Mae and Freddie Mac. More at cleveland.com http://blog.cleveland.com/entertainment/2007/09/stefani_schaefer_returns_home.html clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
September 6, 200717 yr The question of the day is: Where will the layoffs be? The question of the week is: What will the impact be on Cleveland? "In the souls of the people the grapes of wrath are filling and growing heavy, growing heavy for the vintage." -- John Steinbeck
September 6, 200717 yr Good news! PD just updated the story. None of the 850 layoffs are from Ohio. National City to lay off 850 more workers As part of a new round of layoffs, National City Corp. said Thursday it is eliminating about 850 more workers because of ongoing woes in the mortgage industry. None of the latest cuts within National City Mortgage are in Ohio, but rather are scattered across other states. Still, the announcement means that National City has now eliminated about 1,300 jobs, or 20 percent of the workers in its two main mortgage divisions. The Cleveland-based bank last month said it was cutting nearly 450 jobs in one mortgage division, National Home Equity, which handled second mortgages originated through brokers outside of National City. The number of jobs eliminated is actually more like 500, National City spokeswoman Kelly Wagner Amen said Thursday. The bank hadn't previously pinpointed a number. About 300 of the 450 jobs eliminated are local, in Brecksville. http://blog.cleveland.com/business/2007/09/national_city_to_lay_off_850_m.html
September 6, 200717 yr I remember when National City was ramping up their mortgage division and when stories started circulating about the mortgage industry slump, I figured they'd take a hit. clevelandskyscrapers.com Cleveland Skyscrapers on Instagram
September 6, 200717 yr I thought National City's big mortgage division was in the Dayton area, specifically in the southern suburbs just south of the Dayton Mall. Didn't NatCity buy the old Gem City Savings &Loan company and convert it into the mortgage part of the bank? I interviewed for a job at the mortgage division in Dayton 2 years ago. At the time I asked about the pending drop in mortgage volume. They told me they were planning for it by redoing their computer systems so they could downsize their work force to meet the expected drop in mortgage business.
September 12, 200717 yr This article is primarily about about PNC (which does have significant operations in much of Ohio), but contains some interesting National City content... including a prediction by one expert that a "merger of equals" is on the horizon for National City http://www.post-gazette.com/pg/07255/816635-28.stm CEO says PNC 'not a player' in subprime loan fallout Rohr: Bank had 'little exposure' Wednesday, September 12, 2007 By Dan Fitzpatrick, Pittsburgh Post-Gazette PNC, the region's largest bank, has "minimal exposure" to the subprime-mortgage fallout now roiling through financial markets, according to Chief Executive Officer James Rohr, who expects the company to post a "strong performance" in the second half of 2007 despite the turmoil. "We are not particularly concerned about these issues" because "we have not been a subprime player," he said yesterday during a Lehman Brothers investment conference in New York. In fact, Mr. Rohr argued the volatility of the last few months actually "validates" PNC's recent business strategy -- one that mitigates the cyclical swings of consumer banking with more consistent streams of asset management and processing fees (it now collects 59 percent of its revenue from such fees). He also crowed about PNC's "strict credit discipline" -- citing as proof the company's low percentage of consumer loans in default (.8 percent) and just a 1 percent rise in Pennsylvania home-equity-loan delinquencies last month.
January 3, 200817 yr http://www.pittsburghlive.com/x/pittsburghtrib/news/breaking/s_545509.html National City cuts dividend, 900 jobs in mortgage business By Thomas Olson TRIBUNE-REVIEW Wednesday, January 2, 2008 National City Corp. is cutting 900 jobs from its wholesale mortgage business and slashing its quarterly dividend by 49 percent, due to problems in the home mortgage industry, the bank said today. It was not immediately clear if any jobs will be eliminated in Western Pennsylvania at National City Mortgage. The Cleveland-based bank will pay stockholders 21 cents a share, instead of the previous 41 cents, when dividend payments are made on Feb. 1 to shareholders of record Jan. 14. National City will continue to originate home mortgages directly to consumers through its 1,400 branches in nine state, including Pennsylvania, the bank said.
January 3, 200817 yr I wouldn't place a lot of stock in the merger/buyout rumors. I've been hearing those annually for NCB, Key, 5/3 and every other Ohio based bank. It isn't impossible, but I think PNC and NCB have too much common territory for it to make sense. I read recently that JPMorganChase is looking to buy in the Midwest, and that may make a little more sense, only because they've committed to the region already, but have a relatively small presence. This would give them sizable volume. Ultimately I'm just talking about of my posterior, though. I know nothing.
January 23, 200817 yr National City's woes continue...as do other banks. Key and Fifth Third's 4Q earnings are also highlighted. http://www.dispatch.com/live/content/business/stories/2008/01/23/bank_earnings.ART_ART_01-23-08_C7_B794S7R.html?sid=101 National City's loss worse than expected Wednesday, January 23, 2008 - 3:06 AM From wire reports National City lost $333 million, or 53 cents a share, in the quarter that ended Dec. 31, compared with a profit of $842 million, or $1.36 per share, in the year-ago quarter, when National City sold its First Franklin mortgage business. The sale resulted in a gain of $622 million, or $1 per share. KeyCorp The banking and financial-services company's net income totaled $25 million, or 6 cents per share, for the quarter that ended Dec. 31, compared with $146 million, or 36 cents per share in the year-ago quarter. Fifth Third Earnings for the three months that ended Dec. 31 were $38 million, or 7 cents per share, compared with $66 million, or 12 cents per share, for the same period in 2006.
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