First Niagara Financial Group to buy 57 National City branches

Will receive free toaster, Cleveland.

Penalty for Early Withdrawl

Ack!:

National City Corp., Cleveland, reported a net loss of $1.8 billion Thursday for the second quarter, more than 10 times the hit it took in the first quarter. Net income for the second quarter of 2007 was $347 million. National City (NYSE:NCC) posted a loss of $2.45 per diluted share, far worse than analysts' estimates of -26 cents; the company made 60 cents per diluted share a year ago.

Brought low by the subprime crisis and its troubled mortgage portfolio, National City has battled takeover rumors, talk of division sales and a skidding stock price that has traded at a range of $2.99 to $31.58.

Makes me wonder how many of those foreclosures in Cleveland are NatCity products and whether it's time to start investing in the repo industry.

Eldery Greenfield Residents Begin Queuing in Bread Line

In the wake of months of nationwide financial troubles, elderly residents of Pittsburgh's Greenfield community have already staked out their place in front of the Greenfield Senior Center waiting for the inevitable breadlines.

"I was 14 when I last lined up for bread," says Elmer Boehm of Lydia Street. "Me and my Pappy stood in line for six hours for a crust of dry bread and a cup of soup. So, I'll be damned if some 60-something hooligan is going to take my spot."

Dolores Hoffmann of Greer Street offered similar sentiments:

"We all slept in one room, no lights, barely any heat and only a half an apple core to sustain all thirty-seven of us in our house. If Fannie Mae and Freddie Mac continue their downward spiral, I don't want to be stuck eating squirrel again."

The line of citizens awaiting free bread and soup to be doled out by the government in the hopes of alleviating the upcoming Depression now stretches half a city block. Several people have already begun to build permanent encampments. There have been rumors of several fights amongst the elderly.

Many in the economic community see the actions of these Greenfield residents to be a bit extreme according to Robert Waltz, professor of economics at Carnegie Mellon University.

"You see, back during the early days of the Great Depression, you had a corrupt Government, corporate kleptocracy, a failing banking system, large scale environmental degradation, and a stock market that was based on speculation. Today you have a situation that's totally different, I'm sure."

Still, many see the pre-emptive queuing as a smart move.

"I'm actually glad I'm out here," says Brian Klapchick, 23, of Loretta Street. "I mean, I've learned all the words to 'Brother Can You Spare a Dime'. And, I figure, it's not like the degree in English is getting me anywhere other than Starbucks anyway."

Tanking Made Simple

Slipped in between the news of the Freddie Mac and Fannie Mae debacle was this little bit of news from Wall Street:

The financial sector took another beating yesterday as concern mounted over the vulnerability of regional banks in areas hit hard by the housing downturn, analysts said. The pressure on financial stocks is "almost unmerciful," said Andy Brooks, head equity trader at T. Rowe Price in Baltimore. "There is a lot of anxiety, and it is being fueled by a lot of people. For those of us who are longer-term investors, it's been a challenging time."

Trading in National City, a Cleveland-based bank, was halted early yesterday after the price fell more than 20 percent. In a statement, the bank said its capital position was strong. Its stock closed down 15 percent on the New York Stock Exchange after trading resumed.

This is actually quite troubling news for a bank with a very large presence in the Pittsburgh Region. Indeed, through a series of acquisitions and mergers throughout the 80s and 90s, it became our 2nd largest bank (behind PNC).

The company has already been hit hard by the mortgage turbulence, so the situation (which was bad before) seems down right scary now.