Natrional City to be absorbed by PNC Financial

I'm not sure yet what all the ramifications of this will be.

PNC Financial Services Group Inc. will absorb National City Corp. after federal officials turned down National City's request for new capital under the government's $700 billion rescue program.

PNC agreed to pay $5.6 billion for National City, an Ohio-based bank holding company that ran into trouble because of expansion and exposure to subprime mortgage loans. The price of $2.23 a share reflects a roughly 19 percent discount to National City's closing price the day before the deal was announced.

The Treasury Department and the Federal Deposit Insurance Corp. helped arrange the takeover. The deal marked the first time that the government has intervened in picking winners and losers in the financial industry since Treasury officials announced that part of the $700 billion in bailout money would be used to make direct investments in banks rather than to buy their troubled assets.

Read the whole thing at Bailout Sleuth: Picking Winners

NCC stock price

National City's stock price continued it's upward trend after Monday's disaster.

It closed today at $3.14 on volume of $196 Million. (Link.)

Standing by for whatever Friday will bring.

NCC coming back, and a possible FDIC take-over

National City stock price increased by more than a dollar to close today at $2.89 on volume of $588 Million. That's the good news.

The not so good news, according to the well known website, ClusterStock:

We don't mean to be alarmist, but it seems almost inconceivable that depositors at National City (NCC) and Sovereign (SOV) aren't running for the hills. WaMu's depositors yanked $16.7 billion from WaMu in the 10 days after Lehman failed, and the stocks of NCC and SOV are doing an excellent WaMu imitation (see below).

The relevant FDIC staffers are probably still recovering from the all-nighter they just pulled on Citi-Wachovia, but we recommend they get their butts out to NCC and SOV before they have no choice but to put the shops into receivership.

That was as of Monday the 29th. See the entire post for charts and graphs.

Well, the stampede on National City came on the same day as the bailout failure and the 777 stock market dive.