Financial Times FT.com

National City offers cash to cut equity lines

By Saskia Scholtes in New York

Published: September 3 2008 23:37 | Last updated: September 3 2008 23:37

National City, the US bank that has been among the hardest hit by the subprime crisis, is trying to reduce its exposure to the riskiest category of home loans by offering customers cash to close their untapped home equity lines.

If the scheme is successful, analysts say other banks could follow suit, choosing to spend money now to avoid taking on more exposure to the US housing slump.

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