National City Bank shares up as US senate decide on bailout

As investors flooded financial stocks Wednesday ahead of the US rescue package senate vote, National City bank gained in share value.

National City Corporation share price surged up 65.1 percent or $1.14 to $2.89, although this is still less than last Friday when it closed at $3.71.

The revival bailout plan which is being voted on Wednesday night Washington time by Senate leaders, the new revised plan has an added clause that increases insurance for customer’s deposits and tax breaks for businesses and the middle class.

As major banks like Wachovia Corporation and Washington Mutual Inc who are left with losses that are linked to bad mortgage loans have added to investors fears and had a knock on effect with National City who over the last year have seen stocked tumble 89 percent.

National City Bank did raise significant capital in the first part of the year according to the credit rating service.

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