National City shares surge ahead of bailout vote

Shares of the Cleveland-based regional bank surged $1.14, or 65.1 percent, to $2.89. Shares dove 63 percent on Monday after the House defeated the government's original proposal. Shares are still down from a close of $3.71 Friday.

Senate leaders, who are to vote on the revived plan Wednesday night, have added a provision increasing insurance for people's deposits and tax breaks for businesses and the middle class.

The legislation under consideration still centers on the government's ability to buy bad mortgages and other debt from ailing financial institutions.

National City has seen its stock plummet 89 percent this year amid worries over the stability of the financial sector. The downfall of prominent banks like Washington Mutual Inc. and Wachovia Corp., saddled by losses linked to souring mortgage loans, have added to investors fears.

Earlier this week, Moody's Investors Service placed the ratings on National City on review for possible downgrade. Moody's said its review would focus on the company's exposure to real estate credit costs.

The credit rating service said it is unclear when National City Bank will return to profitability, but also noted the bank raised significant capital in the first part of the year.