TheStreet.com's Jim Cramer says this lender gave money to anyone with a pulse, and the shareholders are left holding the bag.

For pure laughs, go read the National City (NYSE: NCC) (Cramer's Take) conference call yesterday, the one where they destroyed what was remaining of their common shareholder base with the partial takeunder by Corsair, an unknown private-equity fund that surfaced to inject $7 billion to save the bank.

We have had some remarkably poorly run banks in this go-round of subprime, including Downey Savings (NYSE: DSL) (Cramer's Take) (takers anyone?) Wachovia (NYSE: WB) (Cramer's Take) and Washington Mutual (NYSE: WM) (Cramer's Take), as well as some nonbank fiascos like E*Trade (NASDAQ: ETFC) (Cramer's Take) and CIT (NYSE: CIT) (Cramer's Take).

But this Nat City takes the cake. They have to be the most stupid and least rigorous lender since the S&L crisis. They have $10 billion in home equity loans that have got to be among the worst ever issued. I swear, I bet that many of these are going to turn out to be out-and-out fraud by the borrowers. Miraculously, Nat City found an even more stupid soul, Merrill's (NYSE: MER) (Cramer's Take) Stan O'Neal, to sell its main originator of this junk to, something that brought O'Neal down and almost brought Merrill down. Some would say that the latter is still in question. I have no idea what would have happened to NCC if they hadn't sold it before the height of the fraud, the first quarter of 2007.

Nat City is not alone. The whole of Ohio seems consumed by crummy lenders: Huntintgon Bancshares (NASDAQ: HBAN) (Cramer's Take) and Fifth Third (NASDAQ: FITB) (Cramer's Take) being the most obvious. Both need infusions, I believe; maybe Corsair's got enough juice to give them some life.

But Nat City is by far the worst, with loans to every imaginable sort of bad borrower throughout Ohio and Florida. The sheer volume of specious lending is remarkable, coupled with the moronically aggressive buyback that the company did when the stock was much, much higher. That's the subject of a lot of derision on the call, by the way. That and repeatedly unanswered questions about all of the attempts to sell itself and how they apparently broke down.

I don't know what Corsair saw in this darned thing. So far, those who have tried to do these infusions don't have much to show for them. Maybe Corsair says we are far enough along that it is time.

All I know is that everyone involved, not just the head of mortgages and risk control, should be broomed here. That hasn't happened at Washington Mutual, which is run by real knuckleheads, so I guess it won't happen here either.

But you can't believe the breadth and depth of bad lending, including condo construction loans in Florida that are just now going bad.

I think we are further along in losses than we were for these banks. My target, established about a year ago, was $400 billion in losses -- a number the Fed probably thought was ridiculous, but it was simply arrived at from the number of exotic loans taken from 2005 to 2007 of the 14 million homes that exchanged hands and then adjusting for the adjustable rates and geographic dispersion. We hit $300 billion yesterday, but if you go read the NCC you will know that the next $100 billion is already upon us.

This bank is a travesty. It reminds me of the worst of 1989, the Centrusts and the Columbias and the Gunbelts, and the defrauding that took place here must have been monumental.

At least, unlike CIT, they had the sense to find a sugar daddy. But, unlike CIT, which just priced its crummy merchandise, the cost was an almost total wipeout for the chumps who believed in these jokers.

Random musings: Where are the consolidations in this drug business? We are obviously over-pharma'd, but no transactions are occurring. Strange given the fact that they actually work!

RELATED LINKS:

• CIT Group to Raise $1 Billion in Offering
• Nat City Posts Loss, Raising $7B in Offering

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. At the time of publication, Cramer had no positions in the stocks mentioned.