Investors hold National City execs' feet to fire
Criticism marks annual meeting, one week after bailout
Tuesday, April 29, 2008 12:09 PM
By Jeffrey Sheban
THE COLUMBUS DISPATCH
CLEVELAND — Angry shareholders turned out in droves today to grill National City Corp. directors and executives at the company's annual meeting.
It was the first public appearance for the board since agreeing to a $7 billion bailout last week. Chairman and CEO Peter Raskind defended the decision to issue new shares to outside investors led by the New York buyout firm Corsair Capital.
The Cleveland-based bank is facing hundreds of millions in losses from high-risk mortgages.
The cash infusion saved National City, which has 1,900 employees in central Ohio, from possible collapse. It further depressed the value of company shares, which have dropped by 80 percent since July.
Raskind acknowledged that shareholders have suffered.
“We are acutely aware of the pain that you as shareholders have incurred,†he said.
He then took more than 30 questions from among the 200 shareholders filling three auditoriums.
“This is not the way you are supposed to run a bank,†shareholder Howard A. Kline said after the meeting.
linkThis story interests me from the POV of the shareholders holding the feet to the fire. I wish it contained some info on the compensation for the bank's executives.