Both State Street and National City are having a tough time as a result of the sub-prime mortgage fallout. News reports are saying that State Street has set aside a couple million dollars to deal with expected lawsuits, and that National City will no longer lend through mortgage brokers. National City is also reportedly cutting several hundred jobs and reducing their stock dividend. As I keep saying, the problems caused by the defaulting debt in the sub-prime marketplace are far from over. My guess is that there will be an upstream ripple effect on the financial markets.
