ideastream's Mhari Saito reports.
For months now, National City has been troubled by a $21 billion dollar portfolio of subprime real estate loans. The company has reported losses for five straight quarters and just three days ago announced plans to cut 4,000 staff. In a conference call with analysts today, PNC CEO James Rohr said National City was also troubled by loans in commercial construction.
JAMES ROHR: We are all meeting our balance sheets and I think in this transaction National City Met their balance sheets today.
As part of the deal, PNC would sell $7.7 billion of stock to the U.S. Treasury under the new Troubled Assets Relief Program. The deal will make PNC the 5th largest US bank by deposits. No word yet on job losses from the merger. Nat City employs nearly 8,000 people in Northeast Ohio. Mhari Saito, 90.3.