User 256237

National City: Paying Customers To Close Credit Lines Smacks of Desperation

Your conclusion regarding NCC's capital is short sighted at best, and smacks of irresponsibility and sensationalism. The Bank's $7 billion dollar capital raise has left it with the highest Tier 1 capital ratio, a measure of the banks liquidity, of all large banks in the country.

The volitility in the financial services sector in general, and within NCC specifically, is largely a result of the difficulty banks have had in providing accurate forecasts of loan losses. By actively reducing the bank's real estate exposure they will better be able to identify trends and project losses, not to mention reducing the risk of additional losses as consumers tap credit lines to stay afloat.