National City Faces SEC Probe
Wednesday, August 27, 2008
The Securities and Exchange Commission (SEC) has begun an informal investigation into National City Corporation relating to the sale of its former subprime mortgage unit, the bank said in its quarterly financial report filed with the agency.
According to the Cleveland-based bank, the SEC requested documents concerning its loan underwriting, dividends, bank regulatory matters, and the 2006 sale of First Franklin Financial Corp. to Merrill Lynch & Company. National City said that it intends to fully cooperate with the SEC, and that the investigation would have no impact on its ability to serve its customers.
Last month, National City reported a second quarter loss of $1.76 billion, its fourth straight quarterly deficit. National City's branch bank network operates in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania, and Wisconsin. It conducts selected lending businesses and provides other financial services on a nationwide basis.
According to the Cleveland-based bank, the SEC requested documents concerning its loan underwriting, dividends, bank regulatory matters, and the 2006 sale of First Franklin Financial Corp. to Merrill Lynch & Company. National City said that it intends to fully cooperate with the SEC, and that the investigation would have no impact on its ability to serve its customers.
Last month, National City reported a second quarter loss of $1.76 billion, its fourth straight quarterly deficit. National City's branch bank network operates in Ohio, Florida, Illinois, Indiana, Kentucky, Michigan, Missouri, Pennsylvania, and Wisconsin. It conducts selected lending businesses and provides other financial services on a nationwide basis.
