Events Calendar
In This Section
Matsos bottling a dressing that’s selling in 25 states
Economic survey: Job losses to bottom out in first quarter
Ohio gas up 12 cents from last week
SCORE offers wide variety of workshops
After 30 years at the helm of Akron Children's, Considine still looks to future
New version of Mozilla Thunderbird landing soon
Most Read Stories
Police accuse bank robbery suspect of gobbling up note (with dashcam video)
Victim of beating in Kent last week is declared dead at Akron hospital
Can DNA tests free ex-Akron captain?
Dad accused of forcing son into field, killing him
Man found dead in North Akron home is identified
Does it work? Test team returns to try out new products advertised on television
Blogs:
Pets:
Cat-loving chihuahua suckles seven abandoned kittens
The Heldenfiles:
Sunday Notebook
Patrick McManamon:
Browns sick after sick loss in Detroit
Akron Zips:
Zips advance to Sweet Sixteen
Tribe Matters:
Seven players added to Tribe’s 40-man roster
Cleveland Browns:
Post-game defensive quotes
Kent State Sports:
Kent State defeats Rochester College, 63-44
Cleveland Cavaliers:
Gameblog: Cavs vs. Philadelphia 76ers
Buckeye Blogging:
OSU – Michigan college football rivals meet in Baghdad
Varsity Letters:
Four area football teams play tonight
All Da King's Men:
The Sunday Sanity Challenge
Blog of Mass Destruction:
Will Health Care Reform Pass?
Akron Law Café:
Health Care Financing Reform: (69) The Brookings Institute Study on "Bending the Curve" – Four General Strategies
See Jane Style:
Vintage Chic
Car Chase:
TIME TO GET YOUR COLLECTOR CARS WINTERIZED
Let's Talk Real Estate:
Faye Dunaway to be Evicted?
Ohio Travels with Betty:
George is looking for a Thanksgiving buffet in Akron.
Sound Check:
Steely Dan Plays "The Royal Scam" at E.J. Thomas Hall
HRLite House:
Personal Rant – You are All Wrong About Jobs, or the Lack of Jobs, Being the Reason People Do Not Live in NEO
Akron Gamer:
Nintendo's Mario endures even as games come and go
By M.R. Kropko
Associated Press
POSTED: 11:43 a.m. EDT, Sep 08, 2008
CLEVELAND: Freezing credit lines often angers bank customers, so National City Corp.'s $200 incentive is an effort to persuade customers to agree to close their lines.
''What they are saying is that this will benefit the bank, and they are willing to compensate customers for that,'' said American Bankers Association senior economist Keith Leggett.
National City is trying to recover from steep losses in the home mortgage market. The $200 offer is to close equity lines that don't have a balance.
The Cleveland-based bank arranged a $7 billion capital infusion in April.
National City began prohibiting some customers from borrowing more on their equity lines last spring as home values fell and credit markets tightened. The bank targeted those with first and second mortgages that looked to be more than their updated lower home value.
The $200 is being offered to customers who have no balance on their home equity lines and were not drawing on their line, National City spokeswoman Kelly Wagner Amen said. The bank, which operates primarily in the Midwest and Florida, wouldn't disclose how many offers it's made, to which customers or where.
A bank must place money in reserve whenever a customer borrows from their credit line, and because of the uncertain credit market, banks are looking to preserve capital, Leggett said.
Leggett said he hasn't heard of any other bank, besides National City, that's offering customers an incentive to close a credit line.
''If it's very successful, you may find other banks will follow suit,'' he said. ''Not everybody will, but it's an interesting experiment.''
National City for the quarter ended June 30 reported a loss of $1.76 billion, or $2.45 per share, compared with a profit of $347 million, or 60 cents per share, in the second quarter of 2007. The results included a $1.1 billion goodwill impairment charge related to previous acquisitions. Goodwill typically reflects the value of an intangible asset.
CLEVELAND: Freezing credit lines often angers bank customers, so National City Corp.'s $200 incentive is an effort to persuade customers to agree to close their lines.
''What they are saying is that this will benefit the bank, and they are willing to compensate customers for that,'' said American Bankers Association senior economist Keith Leggett.
National City is trying to recover from steep losses in the home mortgage market. The $200 offer is to close equity lines that don't have a balance.
The Cleveland-based bank arranged a $7 billion capital infusion in April.
National City began prohibiting some customers from borrowing more on their equity lines last spring as home values fell and credit markets tightened. The bank targeted those with first and second mortgages that looked to be more than their updated lower home value.
The $200 is being offered to customers who have no balance on their home equity lines and were not drawing on their line, National City spokeswoman Kelly Wagner Amen said. The bank, which operates primarily in the Midwest and Florida, wouldn't disclose how many offers it's made, to which customers or where.
A bank must place money in reserve whenever a customer borrows from their credit line, and because of the uncertain credit market, banks are looking to preserve capital, Leggett said.
Leggett said he hasn't heard of any other bank, besides National City, that's offering customers an incentive to close a credit line.
''If it's very successful, you may find other banks will follow suit,'' he said. ''Not everybody will, but it's an interesting experiment.''
National City for the quarter ended June 30 reported a loss of $1.76 billion, or $2.45 per share, compared with a profit of $347 million, or 60 cents per share, in the second quarter of 2007. The results included a $1.1 billion goodwill impairment charge related to previous acquisitions. Goodwill typically reflects the value of an intangible asset.
This actually sounds like a decent deal, considering the current market situation.
Mine just sent me a letter. Saying They closed our line of credit that we had available.. Because the homes had all gone down in value in my area.... So this is better than countrywide.
the browns just traded derek anderson to new england for a first and third round pick. how cool is that?
