 |
| 30 Yr Fix |
6.37% |
0.02% |
| 15 Yr Fix |
5.91% |
-0.01% |
| 1 Yr ARM |
5.17% |
0.00% |
| 5/1 ARM |
5.82% |
0.04% |
| 30 Yr Tres |
4.47% |
-0.05% |
| Fed Prime |
5.00% |
-0.25% |
|
|
|
|
 |
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National City Job Cuts
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Another major lender has announced massive layoffs and the
suspension of its third-party brokered mortgage operations.
National City Corporation, one of the 10 largest banks in
the country, will eliminate 900 jobs. The cuts will affect approximately one-seventh
of the bank's mortgage staff and is the second major layoff in a little over
a year. In the second half of 2006 it cut 2,500 positions as it merged its home
equity and mortgage lending operations and stopped making some types of loans.
The bank also cut its common stock dividend from .41 to .21 and said it plans
to seek more capital to cope with deteriorating credit markets.
National City, based in Cleveland, has about 1450 branches located primarily
in the Midwest. However many of its loans are for homes in Florida, Ohio, and
Michigan where foreclosures have been among the highest in the nation.
And, just to show that the subprime mess is affecting people and institutions
in places one would never have imagined a few months ago, CNBC is quoting from
a leaked internal memo from executives at Bank of America.
As a result of the banks recent losses, CNBC said, an order has come down to
eliminate certain small, formerly free employee amenities. Among those mentioned
were low-fat milk, sugar-free cocoa and soap.
Stock in the company that makes Purell immediately soared but apparently executive
washrooms and executive salaries were spared any cutbacks.
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Comments (3)
| Interesting. A company as big as BoA having, on staff, people from Ivy League Schools and using the eliminating of "formerly free employee amenities" as a way to improve the bottom line in this market. Does that mean BoA employees will get charged for soap as a deduction from their paychecks? What about the electricity it takes to run the employee refrigerators in lunchrooms? Will that end up being a deduction too? |
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| Above Posted By:
anonymous
| Sat, 5 Jan 2008 14:31:29 EST |
The current programs that most of the banks are funding money for are not working. This mortgage crisis issue is a very highly emotional problem that needs to be dealt that way. From an emotional stand point. What we have right now is an 800# that people call and then given a number of a non-profit in there particular area to contact. The non-profit has them bring in some information and has them sign a form giving them permission to talk to the mortgage company.
The solution (which 9 out of 10 times involves sending money) is usually not something that these people can easily resolve, since more then likely it has to do with loss of employment or illness. This only leads to anger, despair, and depression and hopelessness. At some point they are also referred to an agency for example Consumer Credit, to deal with their other credit issues that are worsening in the mist of all of this.
They need a way out after all efforts are exhausted. By implementing these services, it would provide more cooperation on every ones part and less destruction on the families themselves and the banks property in the end. We can't stop all of the foreclosures and the banks losses, but if bank has to ultimately take the loss at least take the loss after you have tried everything to help resolve the situations. End it on a positive note not a negative one that it is on track to do now. |
|
| Above Posted By:
Diana Bell
| Fri, 4 Jan 2008 19:16:44 EST |
| BofA eliminating soap! What's next? They're gonna remove toilet paper from the cans? |
|
| Above Posted By:
Guy
| Fri, 4 Jan 2008 15:43:26 EST |
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