CLEVELAND - National City Corp. said Wednesday that it will take initial steps to restructure its balance sheet by selling about $2 billion in student loans to third parties.
The sales are expected to be completed by the end of this month and will result in a pretax gain of $75 million for the second quarter, the company said. National City is one of the largest providers of student loans in the nation.
But, the company said, other steps to restructure the balance sheet could result in losses later this year. Along with student loans, National City said it is evaluating other restructuring alternatives that involve a broad range of assets carried on its balance sheet. A spokesman said it was unclear when the losses would be recorded, but they are expected sometime before the end of the year. The company said it expects the balance sheet restructuring to be completed by the end of September.
