American Banker back issues from February 1995:
Down market makes it tough to pin a value on mortgage assets. (Fleet Financial Group encounters valuation dispute)
Feb 01, 1995; ... What is a mortgage bank worth?That question - central to the expansion plans of many commercial banks - moved into the limelight this week as Fleet Financial Group hit a snag in buying back the publicly held shares of its mortgage unit.Two independent directors of Fleet ...
FDIC slashing premiums by 83% for most banks. (Federal Deposit Insurance Corp.)
Feb 01, 1995; ... Washington - The Federal Deposit Insurance Corp. on Tuesday proposed slashing premiums to 4 cents for nearly 91% of the industry in the second half of 1995. This 83% reduction from the current rate of 23 cents per $100 of domestic deposits will save the banking industry nearly ...
Clinton's executive order to back peso raises new worries on bank exposure. (President Clinton's order for $20 billion for funds to back Mexican peso)
Feb 01, 1995; ... President Clinton's decision Tuesday to use an executive order rather than legislation to get $20 billion in "peso stabilization funds" for Mexico did little to calm international financial markets and raised fresh concerns about the impact of the crisis on U.S. banks. At the ...
Bankers ask Congress for IRA with immediate tax deduction. (banking industry groups ask Congress to allow tax-deductible individual retirement accounts) (Brief Article)
Feb 01, 1995; ... Washington - Bank industry representatives told Congress Tuesday that the Republican "Contract with America" proposal for individual retirement accounts should be overhauled.The "American Dream Saving Account," as the GOP proposal is called, would not attract investors unless ...
Investment product disclosure bill resurfaces in House. (legislation would improve disclosure for uninsured investment products) (Brief Article)
Feb 01, 1995; ... WASHINGTON - Key Democrats on the House Banking Committee introduced legislation this week to improve the disclosure of uninsured investment products sold in banks. The measure, introduced by Rep. Henry B. Gonzalez, the panel's senior Democratic member, is similar to one the ...
Industry battles card-fee curbs in state courts. (banking industry launches effort to fight efforts to limit credit fees)
Feb 01, 1995; ... WASHINGTON - The banking industry has launched a multistate attack on efforts to limit credit card fees.The latest volley came Monday, when the American Bankers Association filed briefs in two New Jersey Supreme Court cases. Last month industry groups filed briefs contesting state ...
Greenspan to builders: work with banks to speed up mortgage lending. (excerpts from speech by Federal Reserve Board Chairman Alan Greenspan)
Feb 01, 1995 ... Federal Reserve Board Chairman Alan Greenspan told the National Association of Home Builders in Houston on Jan. 28 that it needs to work more closely with the banking industry to promote homeownership. Here are excerpts from Mr. Greenspan's remarks:Housing finance is another area ...
Compass founder sent packing after power play. (Compass Bancshares founder Harry B. Brock Jr.)
Feb 01, 1995; ... The war of words and budding proxy fight at Compass Bancshares escalated to new heights of bitterness as the bank's founder and now dissident director was evicted from his company-supplied office.Meanwhile, the stock price of the Birmingham, Ala.-based bank soared as investors ...
Citicorp to convert Bangladesh office to full-service branch in the capital. (Dacca, Bangladesh) (Brief Article)
Feb 01, 1995; ... Citicorp said Tuesday that it had obtained a license from the central bank of Bangladesh to open a full-service branch in Dacca, the capital.The new branch will open in June. Citicorp has operated a representative office in the city since 1987, providing offshore correspondent ...
Boatmen's names postmerger CEO for Worthen. (Boatmen's Bancshares announces appointment of Charles B. Dudley III as chief executive officer of Worthen Banking Corp.) (Brief Article)
Feb 01, 1995; ... ST. LOUIS - Boatmen's Bancshares said it named Charles B. "Chip" Dudley 3d, chairman and chief executive officer of Boatmen's Bank of Tennessee, to head Worthen Banking Corp. after Boatmen's acquires it.The acquisition is expected to close in late February after approval by ...
Natwest completes Central Jersey acquisition. (National Westminster Bancorp, Central Jersey Bancorp) (Brief Article)
Feb 01, 1995; ... JERSEY CITY - National Westminster Bancorp said it has completed the $300 million purchase of Central Jersey Bancorp of Freehold and its merger into Natwest ...
Morgan plans Boston office for fixed-income sales. (J.P. Morgan Securities Inc.) (Brief Article)
Feb 01, 1995; ... NEW YORK - J.P. Morgan & Co. said its U.S. securities affiliate, J.P Morgan Securities Inc., will establish a fixed-income sales office in Boston.The office, which is expected ...
Cleveland's Third Federal using TV infomercial. (Third Federal Savings)
Feb 01, 1995; ... Cleveland's Third Federal Savings went to the Ross Perot School of Marketing for its latest advertising strategy: the infomercial.The $4.5 billion-asset thrift ran its 30-minute program several month, giving consumers advice on handling their finances and offering special deals on ...
Heavy trading in Brooklyn thrift's stock spurring talk of takeover. (Bay Ridge Bancorp)
Feb 01, 1995; ... Unusually strong trading in the shares of a Brooklyn thrift has befuddled investors and analysts, promoting them to speculate that the institution is in play.Since Jan. 12, daily trading volume in Bay Ridge Bancorp has soared to more than 1.2 million on three days.Its ...
Schenectady's Trustco posts record profits. (Trustco Bank Corp.) (Brief Article)
Feb 01, 1995 ... SCHENECTADY, N.Y. - Trustco Bank Corp. reported record net income for 1994.The $22.9 million to 13% above 1993's.Fourth-quarter net income, also a record, was $2 million; up from $5.4 million for the same period in 1993.The bank's ...
Suffolk earnings up 16% in fourth quarter. (Suffolk Bancorp) (Brief Article)
Feb 01, 1995 ... RIVERHEAD, N.Y. - Suffolk Bancorp earned $8.3 million for 1994.In the fourth quarter the company earned $2.2 million, up 16% from the same period in 1993. Return on assets was 1.11 %, while return on equity was 11.31% ...
Garden State Bancshares had a turnaround year. (Brief Article)
Feb 01, 1995 ... JACKSON, N.J. - Garden State Bancshares reported 1994 net income of $2.1 million, reversing a $537,000 loss in 1993.Fourth-quarter net income was S763,000, up 58.697 from the fourth quarter of 1993. The increase included a federal tax benefit of $600,000 from an accounting change. ...
Accelerated resolution sought for Continental Savings of S.F. (Continental Savings of America to be sold by by Office of Thrift Supervision and Resolution Trust Corp.) (Brief Article)
Feb 01, 1995; ... Acknowledging its inability to raise enough capital to survive, San Francisco's Continental Savings of America consented Friday to being placed in the federal government's "accelerated resolution" program.The company, which has six Bay Area branches and a number of loan production ...
Most '94 homebuyers were doing it for first time.
Feb 01, 1995; ... Despite climbing interest rates, first-time homebuyers were in the majority in the housing market last year.Chicago Title and Trust Co., reporting on a recent survey, said the dominance of first-timers was somewhat surprising because the group currently entering the housing market ...
Chase Manhattan in talks to buy Goldman Sachs' servicing unit. (Main Street Mortgage Co.)
Feb 01, 1995; ... Chase Manhattan Corp., seeking to add again to its growing mortgage empire, is negotiating to purchase the assets of a mortgage servicing business controlled by Goldman, Sachs & Co., according to sources familiar with the deal.Chase, acting through its Chase Manhattan Mortgage ...
12% rise seen in home equity outstandings. (SMR Research Corp. report on home equity lending) (Brief Article)
Feb 01, 1995; ... It based its bid partly on an evaluation by Salomon Brothers Inc. that held the mortgage unit to be worth between $16.50 and $19.50 a share. Montgomery Securities also weighed in with an opinion that supported the offer.One central area of dispute is the value of Fleet Mortgage's ...
Essex founder keeping the reins after sale. (Essex Corp. CEO Kevin Crowe)
Feb 01, 1995; ... Kevin Crowe could easily sit back and let someone else show now that he's sold Essex Corp., the investment marketing company he founded 15 years ago.But somehow, he isn't quite ready to let go."Every product that we have sold, I own," Mr. Crowe boasted in an interview at ...
Cole Taylor snares pro from Premier to build mutual funds program., (Cole Taylor Financial Group, Premier Bancorp)
Feb 01, 1995; ... The architect of Premier Bancorp's aggressive mutual fund drive has jumped ship to help a small Chicago banking company build its own investment program.Richard White Jr. resigned from Premier last month to join Cole Taylor Financial Group as executive vice president in charge of ...
IBAA revs up discount brokerage to widen small banks' options. (Independent Bankers Association of America) (Brief Article)
Feb 01, 1995; ... The Independent Bankers Association of America is adding discount brokerage to the limited range of retail investment sales services it offers its members.Because of the move, the IBAA will be able to accommodate a much broader range of investment transactions through its IBAA ...
ABA recruiting director, staff, board members for affiliated group to address securities issues. (American Bankers Association recruiting for American Bankers Securities Association) (Brief Article)
Feb 01, 1995; ... The American Bankers Association is inching ahead toward formation of an affiliated trade group to focus on mutual funds, derivatives, and other securities issues.Now, three months after the ABA said it would create the group, bankers involved in putting it together are ...
MasterCard: China picked it to develop processing project. (MasterCard International wins contracts to develop credit and debit card transaction processing operations) (Brief Article) (Product Announcement)
Feb 01, 1995; ... MasterCard International claims to have won the bidding to develop and run the first of six projects in China aimed at improving credit card and debit card transaction processing there.The New York-based association says it has received exclusive rights to the Guangzhou Golden Card ...
Cobranded cards becoming talk of the towns. (credit cards)
Feb 01, 1995; ... The township of South Orange, N.J., is officially on the credit card map.Last April, the northern New Jersey town began looking for a bank partner to issue a credit card that would generate income for helping to revitalize downtown South Orange.Valley National Bank of ...
National Data aligns with restaurant group. (National Data Corp. signs marketing agreement with Restaurant Association of Maryland) (Brief Article)
Feb 01, 1995 ... ATLANTA - National Data Corp. said it has entered into a marketing agreement with the 2,200-member Restaurant Association of Maryland, the largest trade association in the state.Through the agreement, National Data strengthens the distribution of its payment system services. The ...
Drexler Technology ended '94 strongly. (Brief Article)
Feb 01, 1995 ... MOUNTAIN VIEW, Calif. - Drexler Technology Corp., provider of a laser-optical card technology that competes with chip cards earned $162,000 in the last three months of 1995.Revenues for the quarter the third of Drexler's fiscal year, more than doubled to $1.2 million from $533,000 ...
Cirrus members form global quality team. (Master Card Cirrus global automated teller machine network) (Brief Article)
Feb 01, 1995 ... WESTCHESTER, Ill. - To improve performance and develop strategies for maintaining quality standards, members of the MasterCard/Cirrus global automated teller machine network have formed a global quality task force.At its initial meeting last month, the task force set several goals, ...
Braille ATM decals receive an upgrade. (Accubraille introduces new automated teller machine decals) (Brief Article) (Product Announcement)
Feb 01, 1995 ... SAN FRANCISCO - Accubraille, which makes Braille decals for automated teller machines, has upgraded its Armor product series. These Braille decals are affixed to durable Plexiglas, making them difficult to ...
Telecommuting finding a home at banks.
Feb 01, 1995; ... Banker's hours.The phrase is a monument to past inflexibility and the belief that banks would always be the only financial services game in town.Shaken out of this delusion, banks have lengthened their hours and become more service oriented. Those changes are well ...
Profits flat at big check printers Harland and Deluxe. (John H. Harland Co., Deluxe Corp.)
Feb 01, 1995; ... Experiencing a sea change in their core check-printing businesses, Deluxe Corp. and John H. Harland Co. last week reported that earnings were flat in 1994.Deluxe, based in St. Paul, Minn., and Atlanta-based Harland are two of the largest printers of check stock for banks in the ...
Comdata's 1st profit since 1987 buyout.
Feb 01, 1995 ... Comdata Corp., a leading provider of funds transfer and check authorization services, said its 1994 revenue rose to $243 million, a 15% increase from 1993.The Brentwood, Tenn.-based company posted 1994 net income of $28.1 million, or 89 cents per share, compared to a $217 million ...
The 28-year-old banking prodigy behind fast-growing Wilshire Financial. (Wilshire Financial Services Group founder Andrew A. Wiederhorn)
Feb 01, 1995; ... Andrew A. Wiederhorn is a man in a hurry.Toting a portable phone an wearing a gracious but nervous smile, he rushes into the lobby of a fancy New, York City hotel and quickly introduces himself.He is founder and CEO of Portland, Ore.-based Wilshire Financial Services ...
Downgrades for Banc One, five other big banks. (Salomon Brothers Inc. analyst Carole Berger downgrades bank stocks)
Feb 01, 1995; ... Salomon Brothers bank analyst Carole Berger Tuesday downgraded six regional and superregional banks to "hold" from "buy," citing cyclical economic factors that could limit their earnings growth for the next two years. "It'll be a more difficult operating environment in 1996 for ...
Merrill combines bank and thrift advisory practices. (Merrill Lynch & Co.)
Feb 01, 1995; ... Merrill Lynch & Co. merged its thrift and bank groups last month as part of a companywide downsizing. At least four executives in the financial institutions practice were laid off.In addition Merrill said it won't renew its contract with a longtime managing director, James Donohue ....
Union Pacific drops $3.6B Santa Fe bid. (Union Pacific Corp. drops $3.6 billion cash offer for Santa Fe Pacific Corp.) (Brief Article)
Feb 01, 1995; ... Union Pacific Corp. Tuesday dropped its $3.6 billion cash offer for Santa Fe Pacific Corp., terminating a $3.7 billion bank loan.Union Pacific had secured a well-received $3.7 billion syndication - led by Citicorp, NationsBank, and Credit Suisse - to cover an $18.50 per share ...
Banks raise prime to 9% in wake of Fed's tightening. (short-term interest rate, Federal Reserve Board)
Feb 02, 1995; ... The nation's central bank raised short-term interest rates again on Wednesday in its ongoing effort to slow the economy and thwart inflation.Commercial banks quickly reacted to the Federal Reserve System's move by increasing their prime lending rate to 9% from 8.50%. ...
NCUA seizes credit union that lost millions on mortgage derivatives. (National Credit Union Administration takes over Capital Corporate Federal Credit Union)
Feb 02, 1995; ... WASHINGTON - The National Credit Union Administration said Wednesday it seized a large, specialty credit union that ran into a liquidity crunch after losing millions in mortgage derivatives.Placing $1.4 billion-asset Capital Corporate Federal Credit Union into conservatorship. the ...
States win power over bank sales of insurance. (federal appeals court decision)
Feb 02, 1995; ... In a decision that threatens two future sources of fee income for banks, a federal appeals court ruled that states can regulate bank insurance sales.The U.S. Court of Appeals for the 11th Circuit, acting in a case involving Florida's Barnett Banks Inc., dismissed banking industry ...
Farm lenders hoping to duck the budget ax. (federal budget cuts)
Feb 02, 1995; ... WASHINGTON - Bankers are second to none in their desire to see the federal deficit pared down. But agricultural lenders across the Farm Belt are hoping Congress will shield farm programs from the budget cutting ax.The House Agriculture Committee will hold its first hearing on the ...
Nader group says banks hide the fact that signature cards are binding contracts. (Ralph Nader's Center for the Study of Responsive Law)
Feb 02, 1995; ... WASHINGTON - A consumer rights organization is calling on the banking industry to revise the signature card form that customers must sign to open an account.The Center for the Study of Responsive Law, a Ralph Nader enterprise, charged that consumers do not realize that these ...
1st Union takes on Wall St. with new group. (First Union Corp's Capital markets Group offers investment services) (Interview)
Feb 02, 1995; ... CHARLOTTE - Many banks around the country pay lip service to the notion of competing with Wall Street to win back customers and markets. But few have put their money on the table to make it happen like First Union Corp.In January 1994, First Union announced the formation of a new ...
Shawmut reassignment of vice chairman leads to rumors of demotion. (Shawmut National Corp. vice chairman Eileen S. Kraus)
Feb 02, 1995; ... Observers are puzzling over Shawmut National Corp.'s recent reassignment of a vice chairman, and some suspect the move is a subtle way of shunting her aside.Eileen S. Kraus, vice chairman of Shawmut National Corp., was recently reassigned to business development functions outside ...
Morgan Hires ex-Goldman energy brokers. (J.P. Morgan & Co. hires 10 brokers from Goldman, Sachs & Co.) (Brief Article)
Feb 02, 1995 ... NEW YORK - J.P. Morgan & Co. expanded its energy futures brokerage activities by hiring 10 floor brokers in New York and London who previously were employed in Goldman, Sachs & Co.'s energy futures trading operations.J.P. Morgan, which has been expanding its energy trading ...
St. Louis' 1st Banks investing in another Calif. institution. (First Banks Inc. of St. Louis, MO to invest in QCB Bancorp of Long Beach, CA) (Brief Article)
Feb 02, 1995; ... First Banks Inc., a St. Louisbased company that recently announced three acquisitions in Southern California, now says it will inject $5 million of capital into a fourth institution, QCB Bancorp, Long Beach."We're looking at it as a partnership'" said Fred D. Jensen, president and ...
Ailing Mass. thrift seeks merger-conversion. (Bank of Taunton to convert to stock institution and be acquired by People's Savings Bank of Brockton) (Brief Article)
Feb 02, 1995; ... Beset by legal and loan problems, a Massachusetts cooperative bank is seeking a way out of its capital woes through a merger-conversion.Under the merger agreement, Bank of Taunton, a $20 million-asset mutual cooperative, will convert to a stock institution and be immediately ...
Servicing, ARMs help Tennessee's top thrift boost profits by 135%. (Leader Financial Corp. helped by adjustable rate mortgages, loan servicing)
Feb 02, 1995; ... Leader Financial Corp., Tennessee's largest thrift company, put its new capital to good use last year, increasing earnings by 135%.The Memphis-based parent of Leader Federal Bank of Savings churned out some other enviable numbers last year, including a 28% increase in net interest ...
City National of New Jersey names three senior officers. (City National Bank of New Jersey)(executive appointments) (Brief Article)
Feb 02, 1995 ... Francis McIver has been promoted to executive vice president and chief credit officer for City National Bank of New Jersey, Newark, principal subsidiary of City National Bancshares.Mr. McIver will oversee the bank's vastly expanding lending and credit administration functions and ...
Central of Kentucky gets new president. (Luther Deaton Jr. named president of Central Bank and Trust Co. of Lexington, Kentucky) (Brief Article)
Feb 02, 1995 ... Luther Deaton Jr. has been promoted to president and chief operating officer of Central Bank and Trust Co., Lexington, Ky.Mr. Deaton will continue to be responsible for the bank's commercial and retail banking group, which includes commercial, mortgage, and consumer lending; ...
Associated says profits rose 11.5% last year. (Associated Banc-Corp reports earnings for 1994) (Brief Article)
Feb 02, 1995 ... GREEN BAY, Wis. - Associated Banc-Corp said its net income was up 11.5% for die year to $40.4 million, or $3.21 per share, $36.2 million, or $2.89 a share. Fourth-quarter net income rose 12.1 to $10.7 million, or 85 cents a share, from $9.5 million, or 76 cents share, for the year-earlier ...
Citizens Banking Corp. of Flint posts gains. (Citizens Banking Corp. of Flint, Michigan reports earnings) (Brief Article)
Feb 02, 1995 ... FLINT, Mich. - Citizens Banking Corp. earned $8.2 million in the fourth quarter, up 14.6% from a year earlier. Earnings per share were 56 cents, compared with 49 cents the previous year.The $2.7 billion-asset company's net income for 1994 was $29.4 million, or $2.03 per fully ...
Firstier Financial earned $52 million in '94. (Brief Article)
Feb 02, 1995 ... OMAHA - Firstier Financial Inc. earned $52.0 million for the year, compared with $47.9 million in 1993. On a per-share basis, the company earned $3, up from $2.73 in 1993.For the fourth quarter, the $3.2 billion-asset company earned $13.5 million, or 78 cents a share, ...
Western Ohio Financial off for quarter, year. (earnings decline reported) (Brief Article)
Feb 02, 1995 ... SPRINGFIELD, Ohio - Western Ohio Financial Corp., $186 million-asset savings bank holding company, said its fourth-quarter 1994 earnings of $595,000 were down 5% from the s period in 1993. Net income for the year was down 1%, to $2. million from $2.65 million in 1993.The company ...
NationsBank CRA chief at home in spotlight. (NationsBank Community Reinvestment Act officer Catherine P. Bessant)
Feb 02, 1995; ... It was in the small town of Jackson, Mich., that Catherine P. Bessant gave her first speech. Coached by her father, a public speaking teacher, the 5-year-old held forth on the nation's space program.Twenty-nine years later, Ms. Bessant is still talking up a storm. As a senior vice ...
The loan bias accusation as a learning experience. (policies to help banks avoid charges of lending discrimination)
Feb 02, 1995; ... NEW YORK - Decatur Federal Savings Bank, accused by the government in 1992 of lending discrimination, had no idea it was a target - even though the Justice Department spent four years investigating the institution."We were naive," said Marian Mackle, the Georgia bank's former ...
Training of FDIC examiners expected to toughen exams and increase enforcement. (Federal Deposit Insurance Corp.) (Brief Article)
Feb 02, 1995; ... NEW YORK - By yearend, a better-trained exam force will result in tougher compliance exams and more enforcement actions from the Federal Deposit Insurance Corp. Barbara Monheit, deputy general counsel at the FDIC's New York office, told a conference last week that the agency's ...
State banks under FDIC can get securities fee reporting waived. (Federal Deposit Insurance Corp. to waive reporting requirements for third-party securities transactions) (Brief Article)
Feb 02, 1995; ... WASHINGTON - The Federal Deposit Insurance Corp. on Tuesday said state-chartered banks that are not members of the Federal Reserve no longer will have to disclose how much they are paid by the third-party firms handling securities transactions.Currently, these banks - which the ...
Norwest Corp. paying $210 million to Barclays for servicing business. (Barclays Bank PLC mortgage servicing portfolio and operations center)
Feb 02, 1995; ... Norwest Corp. announced Wednesday it would acquire a $15 billion servicing portfolio and operations center from London's Barclays Bank PLC.No price was given, but a source close to the deal said it was about $210 million. Barclays said it would make a profit of about $50 million ...
Quakes, rate shake rankings of California home lenders. (California lending market share affected by interest rate increases, earthquake in 1994) (Brief Article)
Feb 02, 1995; ... Interest rates and an earthquake influenced shifts in market share in California for 1994.In general, thrifts moved up in rank from 1993 levels because they were more successful with adjustable rate loans when interest rates went up.Large lenders increased their combined ...
Affordability index up slightly in 4th quarter. (National Association of Realtors' housing affordability index) (Brief Article)
Feb 02, 1995; ... The National Association of Realtors said its index of housing affordability rose 3.6 points in the fourth quarter of 1994, to 131.6. But the index is still about 10 points below its level of a year ago.Edmund Woods Jr., president of the association, said the rise resulted mostly ...
Fannie Mae: education effort bearing fruit. (Federal National Mortgage Association's homebuying information program judged a success) (Brief Article)
Feb 02, 1995; ... A Fannie Mae program that provides detailed information about the homebuying process to people who respond to the agency's advertisements has been an "oustanding" success, according to James A. Johnson, chairman.Speaking at a home builders conference in Houston on Monday, Mr. ...
2 lenders form marketing alliance for Kansas City. (Roosevelt Financial Group Inc. and Mutual Mortgage Co. for alliance to market mortgages) (Brief Article)
Feb 02, 1995 ... ST. LOUIS - Roosevelt Financial Group Inc. and Mutual Mortgage Corp., Kansas City, entered into an agreement to form a strategic alliance to market mortgage loans in the Kansas City area.Such alliances have been increasingly popular in the past year as lenders seek ways to make up ...
Boatmen's Bancshares. (completes acquisition of National Mortgage Co.) (Brief Article)
Feb 02, 1995 ... ST. LOUIS - Boatmen's Bancshares said it had completed the previously announced acquisition of Memphis-based National Mortgage Co.Boatmen's exchanged about five million shares of its common stock for the privately owned mortgage banking company. With Boatmen's shares trading at ...