Due to market viotilaty National City has to cut more jobs and hire an advisor to try and save themselves from their own meltdown.
National City Corp., one of the nation’s top ten largest banks, is eliminating another 900 employees after letting 2,500 employees go in the middle of 2007. The job cuts will affect about one-seventh of their mortgage personnel, leaving 32,804 employees overall.
National City also hired Goldman Sachs & Co. as an adviser and hopes with this new relationship they can put together a plan to help dig them out of the mortgage meltdown. The bank is anticipating that their stocks will fall from 41 cents a share to 21 cents a share, ending 15 straight years of increases.
National City is not out of the mortgage business though, their plans have cut third party mortgage brokers out of the picture and left loan originations to in house employees. They plan on focusing on mortgages considered less likely to go into default.
“Pressure in the housing market is not going to abate any time soon,” Chief Executive Peter Raskind said in an interview. He said the changes will help the bank “navigate through a very difficult period for the entire industry, and beyond.”
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