National City Corp, one of the 10 largest U.S. banks, on Wednesday said it will cut its common stock dividend 49 percent and eliminate 900 jobs as it stops offering mortgages through brokers, and it plans to raise more capital to cope with weakened credit markets.
The Cleveland-based company cut the quarterly dividend to 21 cents per share from 41 cents. Chief Executive Peter Raskind said the cut was necessary to overcome the near-term challenges facing the industry and our company.
National City also said it intends to issue non-dilutive, Tier 1 capital by March, and has hired Goldman Sachs & Co as a capital adviser.
(Reporting by Jonathan Stempel; editing by Gerald E. McCormick)