Monday, September 29, 2008 at 12:41 PM
As the business world reacted to what was happening in Washington, many bank stocks lost value. Among the heaviest issues traded on Wall Street today was Cleveland-based National City Corp. ideastream®'s Rick Jackson reports.
National City stock shed 56% of it’s value closing at a price of less than $2 per share, down from $28 one year ago.
But National City spokesman Todd Morgano said several analysts are expressing confidence in the nation’s 10th largest bank, believing it is in many ways stronger than finanical institutions which have just failed or been sold, like WaMu, Wachovia, and Lehman Brothers.
Morgano says an infusion of $7Billion dollars in capital last April has put National City on solid footing.
MORGANO” “Oppenheimer just today upgraded us from a perform to an outperform - other analysts have mentioned that we’re well capitalized, that we’re not like these other institutions. We can only hope that it is eventually reflected in stock price”
Financial analyst Fred Cummings of Elizabeth Park Capital Management likewise advises Nat City investors to stay calm. And he advises regional banks to be upfront with stockholders.
CUMMINGS: “Management of all of these companies are simply going to have to come out and say what’s going on with their deposit flows in order to stabilize their stock prices.”
He agrees with the bank that the selloff of National City shares is ‘irrational’, and that savvy investors may view this as a time to buy the local stock.
Economy, Facing the Mortgage Crisis, Regional Economy/Business - News
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