National City on “Probation”
Well, it’s the latest in a string of bank breakdowns, and although it’s not being called that quite yet, National City Bank, one of the banks that has a lot of local branches around here in the Cleveland area, has been put on what is called a memorandum of understanding with Federal regulators that are looking into what it is they need to get back on track and remain solvent as well as safe with their deposits for their customers. That’s what the FDIC’s for, to keep the customer deposits safe and make sure that no meltdowns like what happened with the great depression happen again.
It is not clear what exactly this means yet for the bank, but it’s not looking too good, and no one has really made any serious offers yet to buy out the troubled bank which got hit hard with the subprime fiasco thanks to a lot of bad loans based on that sort of risk. We’ll see what happens. Hopefully it’s not another Bear Stearns story in the making.
