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PRINT THIS PAGE Corsair Capital invests in US bank National City22/04/2008. Source: AltAssets. 
Financial services sector-focused private equity firm Corsair Capital and another, unnamed private equity investor are investing $985m in troubled US bank National City Corporation. A further $6.015bn of equity capital will be provided by investors including several of National City's institutional stockholders. Peter E Raskind, National City chairman, president and CEO, said, 'Clearly, the US housing and mortgage environment deteriorated significantly over the course of the first quarter. As a consequence, we have revised future loss expectations and significantly increased reserves across several portfolios, in particular the liquidating portfolios of nonprime mortgage and broker-sourced home equity loans.
'While we are clearly disappointed by the quarter's weak profitability, we feel that it is both necessary and prudent to build reserves in anticipation of a continued difficult environment for housing-related loans,' he added.
National City has reported a net loss of $171m for Q1 2008, which followed an even greater net loss of $333m in the fourth quarter of 2007.
Corsair vice chairman Richard E Thornburgh will be appointed to the National City board of directors. He said, 'In Corsair's view, National City is an integral contributor to the economic fabric of the markets it serves. Our decision to make a long-term investment in National City reflects our recognition of the company's important role as a leading provider of core banking services to its many customers, and our confidence in the potential of National City to achieve enhanced value for its customers, stockholders and employees in the future.'
Cleveland, Ohio-headquartered financial holding company National City's core businesses include commercial and retail banking, mortgage financing and servicing, consumer finance and asset management.
Corsair targets global investments in the financial services sectors. Portfolio companies include Bermudan insurance business Axis Capital Holdings, Argentinean financial house Banco Hipotecario Nacional and Polish corporate banking firm Bank Handlowy.
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