National City shares drop 28%
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As expected, National City Corp. announced that it secured a $7-billion capital infusion from equity investors to help it survive the home mortgage crisis, at least temporarily quashing speculation that the nation’s 10th-largest bank would have to be sold.
But the move did not appease investors who sent National City’s stock tumbling 28% to its lowest level in about 17 years after the bank also posted a $171-million first-quarter loss and slashed its dividend.
National City said it secured $985 million from Corsair Capital. The balance will come from other investors.
Shares of Cleveland-based National City fell $2.30 to $6.03.
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