National City to cut jobs, dividend
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National City Corp., Ohio’s largest bank, will eliminate 900 more jobs and halve its dividend, the first reduction since the payout began in 1935. Its shares fell 5.3% in New York trading.
The company plans to raise capital and has hired Goldman Sachs Group Inc. as its advisor, Cleveland-based National City said. It is halting home loans through brokers and firing the employees in that business, bringing total cuts to 3,400, or about 10% of its workforce, in one year.
National City is still reeling from the housing slump a year after selling its sub-prime mortgage unit to Merrill Lynch & Co.
The bank will pay 21 cents a share Feb. 1 to shareholders of record as of Jan. 14. The dividend was previously 41 cents a share.
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