National City looking to sell unit: report
NEW YORK (Reuters) - National City Corp NCC.N is trying to sell its money-management unit, according to the Wall Street Journal's online edition.
National City is working with Morgan Stanley to shop Allegiant Funds, which manages about $30 billion.
Cleveland-based National City has large operations in Ohio, Michigan and Florida, all hard-hit by the nation's housing problems. The bank has lost money in three straight quarters due to its exposure to mortgage and home equity lending.
In April, the regional bank raised $7 billion of capital from private equity firm Corsair Capital and other investors and in June, it entered into agreements with federal regulators concerning its asset quality and its ability to manage capital, risk and liquidity.
National City's shares have fallen about 85 percent from the year's high of $32.2.
(Reporting by Helen Chernikoff; Editing by Anshuman Daga)
