National City Shares Halted Briefly Amidst Rumors Of Financial Trouble

July 14, 2008 5:33 p.m. EST

Cleveland, OH (AHN) - Trading was briefly halted in shares of National City Monday, allowing the bank time to release a statement quelling rumors the bank may be in trouble. Shares were down more than 20 percent when trading was stopped.

National City released the statement just minutes after trading was halted at 11:50 a.m. Eastern.

"National City is experiencing no unusual depositor or creditor activity. As of the close of Friday's business, the bank maintained more than $12 billion of excess short-term liquidity. Further, as a result of our recent $7 billion capital raise, National City maintains one of the highest Tier I regulatory capital ratios among large banks," according to the company press release.

The regional banks sold off Monday after the FDIC took over IndyMac bank over the weekend. Investors are worried IndyMac may not be the last regional bank to go belly-up.

National City raised $7 billion in capital recently, making it an easy target for speculation as the markets questioned if the cash infusion was enough to cover future losses.

Shares of National City (NCC) finished off the lows at $3.77, down 16 percent.