CLEVELAND - National City says it will raise $7 billion to help shore up its capital position.
Private equity firm Corsair Capital will provide $985 million. The remaining balance will come from other investors, including current institutional shareholders.
National City is also cutting its dividend to 1 cent per share from 21 cents per share to help strengthen its capital position.
The regional bank is raising money amid deterioration in the credit and mortgage markets that has plagued banks since the middle of 2007 and cut into capital positions.
The Cleveland-based bank says it lost $171 million, or 27 cents per share, during the first quarter. The bank earned $319 million, or 50 cents per share, during the year-ago period.