by Calculated Risk on 1/02/2008 01:10:00 PM

From the WSJ: National City Slashes Dividend

National City Corp. said Wednesday it will reduce its quarterly dividend by 49% and raise "non-dilutive" capital as the bank moves to shore up its finances amid the credit crunch.

National City also announced it is getting out of the wholesale-mortgage business, resulting in the cut of another 900 jobs.

And look at their forecast for 2008 mortgage originations:

National City expects mortgage originations in 2008 of approximately $15 billion to $20 billion. Through November, the company originated $24.07 billion in mortgages through its retail business and $19.87 billion via its wholesale channel, which funds loans made by mortgage brokers.

They expect less than half the total volume in 2008 compared to 2007, and a significant decline (perhaps by one third) in their retail originations alone.