American Banker back issues from March 1992:
Court backs FDIC on bank prosecutions. (Federal Deposit Insurance Corp.) (Brief Article)
Mar 02, 1992; ... WASHINGTON -- The Federal Deposit Insurance Corp. may use a simple-negligence standard when prosecuting officers and directors of failed banks, according to a federal appleals court ruling. Because simple negligence is easier to prove than gross negligence, last week's decision ...
Wiltel to run Continental's phone system. (Wiltel Communications Systems, Continental Bank) (Brief Article)
Mar 02, 1992; ... Continental Bank has signed a five-year contract for Wiltel Communications Systems Inc. to run its telephone network. Wiltel, which owns and operates a nationwide fiber optic network, will upgrade the bank's phone services, reducing operating costs by about 20%, and will provide ...
Panel pushes for cleanup of nonbank laundering. (Senate Permanent Subcommittee on Investigations) (Brief Article)
Mar 02, 1992; ... All a former Mexican bank manager needed to launch his $50 million-a-year money-laundering operation in the United States was a Social Security number and a local business license, he testified on Capitol Hill last week. In the wake of a crackdown at U.S. commercial banks, drug ...
Finance Board nominees confirmed; part-time posts filled as Greenspan wins new term. (Federal Housing Finance Board, Federal Reserve Board Chairman Alan Greenspan) (Brief Article)
Mar 02, 1992; ... WASHINGTON -- Ending a two-year flap, the Senate last week confirmed Daniel F. Evans and three others to permanent seats on the Federal Housing Finance Board. The Senate also confirmed Alan Greenspan to a second four-year term as chairman of the Federal Reserve Board and his ...
LaWare says Congress has hobbled banks. (John P. LaWare) (Brief Article)
Mar 02, 1992 ... HARTFORD -- Federal Reserve Governor John LaWare blasted Congress last week, saying its failure to pass significant reform legislation leaves U.S. banks "further and further behind our international competition." In remarks to the Connecticut Mortgage Bankers Association, Mr. ...
Union Bank to acquire Security Pacific branches. (Security Pacific National Bank) (Brief Article)
Mar 02, 1992; ... Union Bank announced Friday that it has agreed to acquire 28 California branches, with $1.2 billion in deposits, of Security Pacific National Bank. Union will pay about $30 million, representing a premium of 2.4% on the deposits. The purchase price was announced in Japan by ...
New York superintendent seeking alternatives for CRA compliance. (Superintendent of Banks Derrick D. Cephas, Community Reinvestment Act) (Brief Article)
Mar 02, 1992; ... NEW YORK -- New York's superintendent of banking is trying to simplify the ways in which wholesale and foreign-owned banks in his state can meet requirements of the Community Reinvestment Act. Derrick D. Cephas said last week in a speech to financial writers that the banks need ...
Michael Horn reappointed. (Federal Home Loan Bank of New York public interest director) (Brief Article)
Mar 02, 1992 ... Michael H. Horn, former state treasurer and banking commissioner of New Jersey, has been reappointed a public interest director of the ...
First Union plans sale of shares. (Brief Article)
Mar 02, 1992; ... First Union Corp. filed a registration statement Friday with the Securities and Exchange Commission for the sale of up to eight million shares of common stock. The sale could bring in nearly $300 million at current prices. The company, based in ...
Friday's market. (J.P. Morgan and Company and Bankers Trust New York stocks decline) (Brief Article)
Mar 02, 1992; ... Major banking stocks were mostly lower as investors continued to fret about prospects for a meaningful recovery in the nation's economy. Sharp price declines were tallied by J.P. Morgan & Co. and Bankers Trust New York Corp., a pair of well-regarded, wholesale-oriented banks. ...
Wells issues $160 million of preferred stock. (Wells Fargo and Company) (Brief Article)
Mar 02, 1992; ... Wells Fargo & Co. issued $160 million of preferred stock Friday. The offering of 8 7/8% perpetual preferred stock was expanded from a projected $100 million issue. The increase was because of strong demand ...
Consumer delinquencies declined in 4th quarter. (1991, American Bankers Association survey on personal loans)
Mar 02, 1992; ... Consumer loan delinquencies at the nation's banks declined during the fourth quarter, spurring guarded optimism that the economy is improving. Several bankers said they were encouraged by a survey from the American Bankers Association that found a decline in late payments on ...
Bankers Trust insiders sell big share blocks. (Bankers Trust New York)
Mar 02, 1992; ... Two top executives at Bankers Trust New York Corp. recently sold a large number of shares of the company's stock. Chief executive Charles Sanford Jr. sold $2.27 million in stock and chief credit officer Joseph Manganello sold $1.94 million, according to Invest/Net Inc., which ...
Economist says electronic funds blur Fed policy. (Elinor Solomon, Federal Reserve Board) (Economic Outlook)
Mar 02, 1992; ... So much money is flowing through electronic funds-transfer networks that new methods are needed to gauge the true impact on the economy of Federal Reserve policies. This is the assertion of Elinor Solomon, a professor at George Washington University and one of the few economists ...
Bittersweet future in store for survivors of cutbacks. (bank consolidations) (Career Crisis: Surviving the 90s, part 1)
Mar 02, 1992; ... When Jerry Little of the New Hampshire Bankers Association discusses the tidal wave of consolidation sweeping the industry, he tells bankers there's good news and bad news. "The good news," the association president says, "is that you are survivors. "The bad news," ...
Can the federal government manage student lending more efficiently than the private sector does? (Sound Off)
Mar 02, 1992; ... * Robert L. McCormick Chief executive officer Stillwater National Bank and Trust Co., Stillwater, Okla. What does the federal government do better than the private sector? Can you think of anything? I see very little evidence that the program would improve if you turned it over ...
Fed to trade currency via nonbanks. (Federal Reserve Bank of New York to use investment banks for foreign exchange transactions)
Mar 02, 1992; ... The Federal Reserve Bank of New York said Friday that it will conduct foreign exchange trades with securities broker-dealers, creating inroads into a domain of commercial banks. Speaking in Phoenix to the Public Securities Association, a securities industry trade group, E ....
Growing number of viruses seen as danger to bank data. (computer viruses, according to Veribanc report)
Mar 02, 1992; ... A startling number of banks have been struck by software viruses - programs that sabotage computer systes - according to a bank ratings firm that has received infected data. Of the 750 banks sending computer diskettes containing fourth-quarter 1991 financial data to Veribanc, ...
American Express in Mexican deal; cobranded gold card planned with giant Banamex. (credit card, Banco Nacional de Mexico)
Mar 02, 1992; ... American Express, Co. has set up a joint venture with Banco Nacional de Mexico to issue and process payments on a cobranded gold card for Mexican consumers. The deal is the third such alliance with a non-U.S. bank by American Express since last year, when it agreed to issue ...
Round-the-world banking lesson. (Column)
Mar 02, 1992; ... The old joke goes: "Last year I went around the world. This year I want to go somewhere else." Well, I wanted to go somewhere else, but I wound up going around the world. I wanted to go to India, to see what socialism and the rejection of foreign capital and ideas ...
Lower interest rates: key to noninflationary growth. (excerpt from a report by the Jerome Levy Economics Institute) (Required Reading) (Transcript)
Mar 02, 1992 ... A critical part of any effective program to cope with the economic challenges of the 1990s will be to redirect monetary policy from fighting inflation to promoting stability and growth. Interest rates no higher than those that prevailed three decades ago are a necessity. ...
Mack attack on Secretary Brady; Senator says Treasury chief undermines economy. (Connie Mack III, Nicholas F. Brady) (Washington Monday) (Interview)
Mar 02, 1992; ... American Banker: What's your problem with Nick Brady? Connie Mack: The President gave his State of the Union address, which I was elated about because I'm convinced that a 15% capital gains tax rate, a passive loss rule change, tax credits in IRAs, and pension fund initiatives ...
How some banks help their workers cope with cutbacks.
Mar 02, 1992; ... Many banks provide services to help fired employees get back on their feet. But relatively few offer programs to help those who survive cope with the trauma of cutbacks and reorganization. At First Chicago Corp., about 400 staff members have taken part in "Life During ...
Shawmut to aid victims of finance company overcharges. (Shawmut National) (Community Relations)
Mar 02, 1992; ... Under pressure from the Massachusetts attorney general, another Boston bank agreed on Friday to compensate low-income borrowers who were overcharged for second-mortgage loans. Shawmut National Corp. agreed to refinance 50 borrowers who took out loans at a second-mortgage company ...
SecPac brokers leave en masse; all 16 on government-bond repurchase desk quit. (Security Pacific)
Mar 02, 1992; ... Betraying increased uncertainty about their parent's upcoming merger with BankAmerica Corp., all members of the government securities "repo" unit at Security Pacific Corp.'s New York-based processing subsidiary left the firm last week. The exodus of the 16-person desk of ...
BankAmerica reaches accord with 2 agencies. (Federal Reserve Board, Justice Department; antitrust agreements for acquisition of Security Pacific) (Brief Article)
Mar 03, 1992; ... SAN FRANCISCO -- BankAmerica Corp. settled antitrust issues with two government agencies, helping clear the way for its acquisition of Security Pacific Corp. The Federal Reserve Board is expected to sign off on the deal by the end of this month, eliminating the last serious ...
AmBase wins approval for Carteret private issue. (from the Office of Thrift Supervision, Carteret Savings Bank) (Brief Article)
Mar 03, 1992; ... WASHINGTON -- Thrift regulators have given AmBase Corp. another chance to find investors for its troubled subsidiary, Carteret Savings Bank, the New York-based holding company announced Monday. The Office of Thrift Supervision approved a capital plan that requires AmBase to ...
Salomon pessimistic on pace of workouts. (Salomon Brothers report on nonperforming real estate loans) (Commercial Real Estate) (Brief Article)
Mar 03, 1992; ... Despite upbeat reports of stabilization in nonperforming real estate loans, a new report by Salomon Brothers Inc. predicts "a slow and costly workout from these problems on the part of the commercial banking industry." Headlined "Commercial Banks and Real Estate - Absorption ...
2 Oregon banks reach agreement on merger. (Western Bank, Crater Bank) (Brief Article)
Mar 03, 1992 ... Western Bank of Coos Bay, Ore., said it has agreed to acquire Crater Bank, Central Point, Ore. Under the merger agreement, Crater Bank shareholders will receive 119,763 ...
Utah thrift splitting shares. (First Federal Savings Bank of Salt Lake City) (Brief Article)
Mar 03, 1992 ... SALT LAKE CITY -- First Federal Savings Bank said its directors declared a three-for-two stock split ...
PNC sees revival in money growth. (PNC Financial) (Brief Article)
Mar 03, 1992 ... PHILADELPHIA -- The Federal Reserve has increased bank reserves and lowered interest rates enough to revive long-dormant money growth, said analysts at PNC Financial Corp. said. Their investment policy statement for March projected 1.4% growth in real gross domestic product and ...
Republic Bancorp. (common stock offering) (Capital Monitor) (Brief Article)
Mar 03, 1992 ... Republic Bancorp, Ann Arbor, Mich., has filed to offer 2.53 million shares of common stock worth around $19.6 million through Keefe, Bruyette & Woods Inc., First of Michigan Corp., and Roney & Co. Republic operates six subsidiary Michigan banks and a mortgage company. ...
Monday's market. (BankAmerica and Chemical Banking stocks active) (Brief Article)
Mar 03, 1992 ... BankAmerica Corp. and Chemical Banking Corp. were the most active banking stocks Monday. Other issues were mostly quiet as investors awaited Friday's reports on employment and consumer credit. BankAmerica was up 87.5 cents to $44.375 in ...
Bank funding near for United Artists buyers. (group led by Merrill Lynch Capital Partners) (Brief Article)
Mar 03, 1992; ... An investor group led by Merrill Lynch Capital Partners is close to lining up bank financing for its planned $680 million purchase of the United Artists theater chain from Tele-Communications Inc. Completiion of the deal, announced on Feb. 19, depends in part on the buyers' ...
Dodd opposes SEC plan to end exemptions for Fannie, Freddie. (Christopher J. Dodd, Securities and Exchange Commission, Federal National Mortgage Association, Federal Home Loan Mortgage Corp.) (Brief Article)
Mar 03, 1992 ... PHOENIX -- A proposal sought by the SEC to repeal securities law exemptions of government-sponsored enterprises such as Fannie Mae is going nowhere this year, said Sen. Christopher Dodd. The Connecticut Democrat, chairman of the Senate securities subcommittee, said Sunday at the ...
Personal bankruptcies increased 21.5% in '91. (American Financial Services Association report) (Brief Article)
Mar 03, 1992 ... WASHINGTON -- The number of individuals filing for personal bankruptcy jumped 21.5% in 1991, pushing the total number of nonbusiness filings to 872,438 for the year. The big rise surpassed the 11%, 12%, and 16% personal bankruptcy increases in ...
Spotlight on Memphis: retail vacancy rates. (Tennessee) (Commercial Real Estate)(Illustration) (Brief Article)
Mar 03, 1992 ... The image of savings and loan associations among commercial real estate professionals has improved dramatically in the past year, a survey shows. The poll of 1,724 professionals, conducted by Arthur Andersen & Co. and National Real Estate Investor magazine, found that about 20% ...
New England: banks on rise, economy drags. (fourth quarter 1991 earnings) (Analysis: Follow-up on the News)
Mar 03, 1992; ... New England appears to be a hotbed of positive news these days. Banks in the region recently reported their second consecutive quarter of improved profits, stocks are rallying, and two big institutions are planning ambitious stock offerings. But don't be fooled: A strong ...
OTS seeking $275 million from Lincoln's law firm. (Office of Thrift Supervision; Lincoln Savings and Loan Association; Kaye, Scholer, Fierman, Hayes and Handler)
Mar 03, 1992; ... WASHINGTON -- Swooping down on what it deems an egregious case of professional misconduct, the Office of Thrift Supervision said Monday it is seeking $275 million from a major New York law firm that represented the failed Lincoln Savings and Loan Association. The civil action, ...
California Federal files lawsuit to recover value of its goodwill. (California Federal Bank is suing the federal government) (Brief Article)
Mar 03, 1992; ... LOS ANGELES -- California Federal Bank announced Monday that it is suing the federal government to recover the value of its supervisory goodwill. The struggling thrift also submitted a capital plan to the Office of Thrift Supervision. Under the Financial Institutions Reform, ...
FDIC said to float rescue plan for First City. (Federal Deposit Insurance Corp., First City Bancorporation of Texas)
Mar 03, 1992; ... The government has tentatively agreed to provide more than $350 million in assistance to promote the sale of the ailing First City Bancorporation of Texas, sources said Monday. Federal Deposit Insurance Corp. officials are proposing an "open bank" rescue, whereby a troubled bank ...
Despite cutbacks, some bankers in demand. (Career Crisis: Surviving the 90s, part 2)
Mar 03, 1992; ... Don't tell John McKinley it's tough to get a job. As the No. 2 credit policy officer at C&S/Sovran Corp., Mr. McKinley was flooded with offers last year when NCNB Corp. was courting his company. "I think I got on a list somewhere," quips Mr. McKinley, who ended up ...
A veteran banker tunes in to consumers as Fed advisor. (Denny D. Dumler, Federal Reserve Board) (People in the News)
Mar 03, 1992; ... Denny D. Dumler has some advice for consumer bankers: Start talking to the consumers, rich and poor alike. Mr. Dumler, a 25-year veteran of the bank credit-card business, said he is not offering gratuitous advice. Until he joined the Federal Reserve Board's consumer advisory ...
1st Florida is mining securities portfolio. (First Florida Banks)
Mar 03, 1992; ... First Florida Banks will take after-tax gains of $13 million to $16 million on the sale of investment securities this quarter to boost capital ratios and reduce the portfolio's average life. The gains come as First Florida attempts to shake off the effects of bad real estate ...
Insider selling casts doubt on home builders' rally.
Mar 03, 1992; ... Like banking stocks, shares of home building companies led the stock market's charge after the Federal Reserve Board slashed interest rates on Dec. 20. But subsequent insider selling has cast doubt on the duration of the rally - in home building stocks and perhaps in ...
FBS Mortgage developing expert system software. (with Cybertek-Cogensys)
Mar 03, 1992; ... As part of total system redesign, FBS Mortgage Corp. in Minneapolis is developing mortgage underwriting software based on sophisticated artificial intelligence techniques. The software is being developed with Cybertek-Cogensys Corp., a Dallas company that specializes in ...
A squeeze on cash management: competition heats up, price rises slow down. (Phoenix-Hecht survey of banking's cash management services)
Mar 03, 1992; ... Ordinary prices for cash management services increased only 3.7% in 1991, a signal that this fee-based banking business is becoming ever more competitive, according to a survey by Phonix-Hecht, a consulting company. Cash management prices rose more slowly in 1991 than in ...
Needed: Fannie Mae clone for other loans. (Federal National Mortgage Association) (Column)
Mar 03, 1992; ... Ask a public health specialist what is the most effective means of controlling health care costs and you will invariably be told that prevention is always to be preferred to treatment. The same holds true for ministering to our banking ills. Regrettably, the recently passed ...
A capital-raising idea: the community rights offering. (Column)
Mar 03, 1992; ... Across the United States, stock financial institutions are feeling the pressure to augment capital. Some fall short of regulatory capital requirements. Others want extra to take advantage of acquisition opportunities. More demanding capital requirements and ...
Do's and don'ts if layoffs are in the wind.
Mar 03, 1992; ... Afraid the ax migh fall? There are two things you should do - and one you shouldn't. First of all, don't be a fatalist. "If you just wait around, you'll be dead," says Mark Patten, a senior vice president with Norstar Bank of Upstate New York, who has survived four ...
Worst of credit crunch may be past, analysts believe. (symposium sponsored by John J. LaFalce) (Panel Discussion)
Mar 03, 1992; ... WASHINGTON -- Is the credit crunch over? Bank stock analyst James J. McDermott and others who spoke at a symposium here Monday think it just may be. "The severe impact of the credit crunch came in the fall of 1990," said Mr. McDermott, the president of Keefe, Bruyette ...
Union Planters-Secor deal fails to excite investors. (Secor Bank F.S.B.) (Stocks)
Mar 04, 1992; ... A roadblock in Union Planters Corp.'s plan to buy a large Alabama thrift is keeping the bank's stock from rising. The obstacle is an assistance agreement between federal savings and loan regulators and the acquisition target, $2.1 billion-asset Secor Bank, Birmingham. ...
Citicorp pioneers with Brazil issue. ($100 million international note offering)
Mar 04, 1992; ... LONDON - In an unusual capital-raising move that protects it from possible foreign exchange controls, Citicorp has floated $100 million in short-term bonds through its Brazilian subsidiary. The pioneering action involves jumping on the bandwagon for high-yield foreign bonds by ...
Chase offering daily fax statements for businesses. (Chase Manhattan Bank)
Mar 04, 1992; ... Chase Manhattan Bank has begun offering service that lets business customers receive daily account balances and transaction information by fax machine. The service, announced last week, costs $25 per month for five accounts and $4 for each additional account. Chase executives ...
It pays to think small in marketing. (use of micromarketing) (Column)
Mar 04, 1992; ... How many large advertising agencies that represent financial institutions would recommend diverting money slated for television ads to Little League uniforms for one branch or, say, a children's hospital banquet for another branch? Most ad agency executives would choke at the ...
Documentation can mean CRA success. (Community Reinvestment Act) (Column)
Mar 04, 1992; ... It has become clear to every banker that the four federal agencies responsible for conducting CRA compliance examinations take their responsibility seriously. At every FDIC-insured institution, the examiners of the Federal Deposit Insurance Corp., the Office of the Comptroller ...
AT&T unit to woo franchise owners. (AT&T Capital Corp. lending to target first-time franchise owners) (Small Business)
Mar 04, 1992; ... AT&T Capital Corp. plans a big push onto banks' small-business turf in April. The subsidiary of the telecommunications giant, which was recently licensed as a small-business lending corporation by the Small Business Administration, will take special aim at first-time franchise ...
Morgan Stanley ruled roost in '91; but in sheer number of deals, Alex Sheshunoff was first. (investment banking community's successful year)
Mar 04, 1992; ... A year that saw announcement of the two largest mergers in banking's history, as well as 19 other deals valued at 100 million or more, figured to be a good one for the investment banking community. And it didn't disappoint. Ten advisers got in on at least one of the year's five ...
NationsLender. (NationsBank Corp. formed through NCNB Corp. and C&S Sovran Corp. merger) (Brief Article)
Mar 04, 1992; ... Looking to finance a new yacht? A mobile home? A baby grand? Try NationsBank Corp. As a byproduct of the merger between NCNB Corp. and C&S/Sovran Corp., the big southern bank is establishing a division devoted exclusively to pushing "specialty" consumer loans. The ...
Chicago turf war. (Richard Thomas of First Chicago Corp.) (Brief Article)
Mar 04, 1992; ... Richard Thomas has seen the future of First Chicago Corp.'s corporate banking unit - and it's smack in rival Continental Bank Corp.'s backyard. Mr. Thomas, who recently succeeded Barry Sullivan as First Chicago's chairman and chief executive, is shrinking the company's ...
First Maryland fined for lapses in cash reports. (First National Bank of Maryland) (Brief Article)
Mar 04, 1992; ... WASHINGTON -- First National Bank of Maryland was fined 4950,000 on Tuesday by the Treasury Department for failing to file currently transaction reports. The Treasury said the Baltimore bank, an affiliate of Allied Irish Banks, improperly exempted from reporting requirements 111 ...
Wells contracts out lockbox line. (Wells Fargo Bank hires Nationwide Remittance Centers Inc.) (Brief Article)
Mar 04, 1992; ... Saying it can no longer afford to invest in all facets of its cash management business, Wells Fargo Bank said this week it has hired Nationwide Remittance Center to run one key business line. Under the contract, Nationwide Remittance, based in McLean, Va., will run Wells' ...
The bigger your title, the more help you get. (support for laid off bank employees) (Brief Article)
Mar 04, 1992; ... Most major banks offer outplacement services to help cushion the blow of getting laid off. But the degree of support displaced executives can expect frequently depends on their former rank and title. At its core, outplacement service is similar at most banks. Executives are ...
Mastercard to open Mexico office in '92. (Mastercard International) (Brief Article)
Mar 04, 1992 ... MEXICO CITY -- MasterCard International announced plans to open an office in Mexico's capital this year, the company's first in Latin America. Mexico "is one of the fastest growing markets we enjoy anywhere in the world," Alex "Pete" Hart, MasterCard president, said in news ...
Desbons to head Visa's London office. (Jean-Jacques Desbons of Visa International) (Brief Article)
Mar 04, 1992; ... Visa International has appointed Jean-Jacques Desbons president and chief executive of its Europe, Middle East, and Africa region, the card association said Tuesday. Mr. Desbons, 57, joined Visa International in 1989 as an executive vice president. He succeeds Jacques ...