American Banker back issues from January 1996:
Hopes for wider powers now pinned on courts, regulators - not Congress. (banking industry)
Jan 02, 1996; ... When 1995 began, a new Republican majority on Capitol Hill seemed poised to release banks from the shackles that had kept them a step or two behind the rest of the financial services industry.No such luck.Instead, the good news for bankers came from the courts and the ...
New niche: wising up direct marketers about who just wants to be let alone.
Jan 02, 1996; ... Marketers' obsession with buying and building massive customer data bases has created a seemingly contradictory subspecialty - removing the names of people who prefer not to be on mailing or telemarketing lists.It has become the law for direct marketers of everything from credit ...
Consumer delinquency spurring short sales. (stocks of bank-related companies)
Jan 02, 1996; ... Sharp divisions are developing on Wall Street over the recent upticks in consumer loan delinquencies.Short-sellers are betting on further damage to consumer finance companies, while some stock analysts are touting buying opportunities in the stocks.A case in point is ...
Musical chairs at OCC; new aide for Bereuter. (Office of the Comptroller of the Currency)(includes multiple briefs on executive appointments)
Jan 02, 1996 ... Mark P. Jacobsen was named senior adviser to Comptroller of the Currency Eugene A. Ludwig last week. After joining the agency in January 1994, Mr. Jacobsen was special assistant to the chief counsel. Before that he had been an associate with the law firm of Covington & Burling, where Mr ....
NationsBank wants class action denied in fair-lending lawsuit. (bank charges Lawyers Committee for Civil Rights and Urban Affairs with missing classification certification deadline)(Brief Article)
Jan 02, 1996; ... Trying to limit its potential liability, NationsBank Corp. asked a federal judge last week to deny class-action status for a pending fair-lending lawsuit.The bank charged the Washington Lawyers Committee for Civil Rights and Urban Affairs with missing the deadline to seek class- ...
Skepticism greets TV prediction that Glenfed will be sold in '96. (analysts skeptical of CNBC commentator Dan Dorfman's prediction that Glendale Federal Bank will be sold in 1996)(Brief Article)
Jan 02, 1996; ... Does CNBC commentator Dan Dorfman have the inside word on the next big California thrift merger?He certainly gave that impression on his Dec. 21 "Dorfman Report" when he singled out $15.9 billion-asset Glendale Federal Bank as a "sure-fire takeover within the next 12 months." ...
Los Angeles officials urge Fed to approve First Bank System's bid for First Interstate. (Los Angeles, California city council urge Federal Reserve to reject application by Wells Fargo to acquire First Interstate Bancorp)(Brief Article)
Jan 02, 1996; ... Richard J. Riordan is standing up for First Interstate again.The mayor of Los Angeles has teamed up with the president of his city council to urge the Federal Reserve Board to reject Wells Fargo & Co.'s application to acquire First Interstate Bancorp.The city "strongly ...
Relationship managers need strict sales goals.
Jan 02, 1996; ... The title "corporate lender" has begun to disappear from the commercial banking nomenclature in favor of the term "relationship manager."The relationship manager has significantly broader responsibility than finding, underwriting, and monitoring loans. Ideally, he or she is a ...
Scorecard: good performance marred by crises. (credit union movement in 1995)
Jan 02, 1996; ... 1995 was a banner year for credit unions, as capital levels hit historic highs and delinquency continued a decade-long decline.Too bad nobody noticed. Instead, the industry busily set about making a spectacle of itself for most of the year, beginning with the collapse of $1.6 ...
Colorado Bankers fighting an expansion in Denver. (Colorado Bankers Association sues state banking agency to prevent expansion of Gates Credit Union)(Brief Article)
Jan 02, 1996; ... Colorado bankers are going to the courts to block a credit union expansion.The Colorado Bankers Association is suing the state banking agency for permitting $84.4 million-asset Gates Credit Union to expand its membership base to include the southern metropolitan area of Denver - ...
Mass. trade group revives with mission to swap ideas. (Massachusetts Independent Bankers Association)
Jan 02, 1996; ... A Massachusetts bank trade group is waking up from a long hibernation, abandoning old lobbying efforts in favor of helping its independent bank members boost their bottom lines through cooperative efforts.After several years of inactivity, and hardly any meetings, the ...
SBA says 1st National leads in New England. (Small Business Administration; First National Bank of New England)(Brief Article)
Jan 02, 1996 ... The Small Business Administration ranked First National Bank of New England the largest lender of SBA-guaranteed commercial loans under its flagship 7(a) program in New England.The agency, in releasing its 1995 fiscal year figures, shows First National Bank of New England as the ...
Farm lenders harvested a decent crop in '95.
Jan 02, 1996; ... Last year was a fairly good one for farm lenders.The year "turned out to be generally quite good for American agriculture," said Marvin Duncan, chairman of the agricultural economics department at North Dakota State University, Fargo. "Prices are ... high enough so there will ...
The trials and tribulations of the family-run bank. (community banking)
Jan 02, 1996 ... The family-owned and family-run bank seems like the ultimate in community banking."I bank at Smith Bank" or "I've been banking with the Jones family all my life, and so did my father" are typical comments in many communities where a grandfather or even great-grandfather started a ...
Lenders adjusting to a new reality: tighter belts.(mortgage banks)
Jan 02, 1996; ... As mortgage bankers prepare for a new refinancing wave, they are struggling to digest the enduring effect of the last one - a strict new emphasis on the bottom line.The signs were everywhere last year.In December, PNC Mortgage, Vernon Hills, Ill., announced it would no ...
After acquisition binge, Norwest sees marketing as the way to grow. (Norwest Mortgage Inc.)(Brief Article)
Jan 02, 1996; ... 1995 was the year Norwest Mortgage broke into the most exclusive club in mortgage banking, becoming one of just four companies with a servicing portfolio topping $100 billion.Acquisitions have fueled most of the Des Moines company's growth, helping it to more than double its ...
PNC unit was a leader among lenders seeking new ways to sell wares. (PNC Bank Corp.)(Brief Article)
Jan 02, 1996; ... Finding new ways to deliver an old product - the mortgage loan - was a big theme in 1995, and perhaps no company exemplified it better than PNC Mortgage.In February, the PNC Bank Corp. unit teamed with Coldwell Banker Corp. in a joint venture to market mortgages directly to ...
Big thrifts back in fixed-rate game after tumult of refinancing boom.(Brief Article)
Jan 02, 1996; ... Sobered by the last refinancing boom, the nation's largest thrifts decided in 1995 to plunge into the fixed-rate market.For more than a decade, most thrifts have stuck to making adjustable-rate mortgages to hold in their portfolios - a strategy aimed at earning interest income ...
GE throws in the towel on retail originations. (GE Capital Mortgage Services)(Brief Article)
Jan 02, 1996; ... One of the most striking developments on the mortgage scene in 1995 was the decision by GE Capital Mortgage Services to stop originating residential loans directly to consumers.For years, the Raleigh, N.C., company's hallmark had been its presence in virtually every aspect of the ...
Lawmakers ask patience for debtors strapped by government shutdown.(Brief Article)
Jan 02, 1996; ... Two key lawmakers have asked the federal housing agencies to persuade loan servicers to cut some slack for furloughed government workers who miss mortgage payments.In identical letters sent Dec. 28 to the chairmen of Fannie Mae and Freddie Mac, House Banking Committee Chairman Jim ...
Trust rules may be eased for multistate national banks.
Jan 02, 1996; ... National banks with trust departments operating in several states may soon get a break on the cost of doing business.The Office of the Comptroller of the Currency has issued a proposal that would allow banks to account for all trust operations at their headquarters rather than ...
A life insurance time bomb in trust - and how to defuse it.(Column)
Jan 02, 1996; ... Trust departments are confronting substantial liability associated with the life insurance policies held by trusts under their management.However, few banks recognize the potential liability they face. The stakes are huge, with a potential price tag of tens or even hundreds of ...
National City unit buying 1st Data payment business.(National City Processing Co., First Data Resources Inc.)(Brief Article)
Jan 02, 1996; ... National City Processing Co. has agreed to acquire the remittance processing business of First Data Resources Inc.Under terms of the agreement, the Omaha-based card servicing unit will outsource all of its clients' remittance activities exclusively to National City. These functions ...
Visa guarantees car rentals at peak times. (Visa U.S.A.)
Jan 02, 1996; ... At the behest of major car rental companies, Visa U.S.A. has introduced a guaranteed reservation service for peak travel times.Visa said the service was available beginning Monday at participating renters, including Hertz, Avis, National, and Budget. Cardholders who give their ...
Midwest Payment signs Sumner National Bank. (Midwest Payment Systems signs electronic funds transfer services contract with National Bank of Sumner, Illinois)(Brief Article)
Jan 02, 1996; ... Cincinnati-based Midwest Payment Systems has signed a contract with National Bank of Sumner, Ill., to provide electronic funds transfer and Jeanie network services.By joining the Jeanie automated teller machine network, Sumner offers its customers 24-hour access to more than 1,200 ...
Stock of systems, processing firms jumped 35% in '95.
Jan 02, 1996; ... Like in the rest of the U.S. equities market, 1995 was a terrific year for bank technology stocks.The publicly traded financial systems and processing-services firms tracked by American Banker saw their stock prices rise an average of 34% last year.That hefty increase ...
Deluxe will take restructuring charge of $60M to $70M.(Brief Article)
Jan 02, 1996; ... Check printing firm Deluxe Corp., acknowledging that its future success lies more in electronic banking, said last week it would take $60 million to $70 million restructuring charge.Executives at St. Paul-based Deluxe said last week that the fourth-quarter charge to earnings would ...
Royal Bank of Canada trims U.S. operations to zero in on profits.
Jan 02, 1996; ... Less is more for the U.S. businesses of Canada's biggest bank, Royal Bank of Canada.In the last three years, U.S. senior vice president and general manager David L. Robertson has reduced the bank's corporate client base to about 685 from 1,500.At the same time, he has ...
Booming mutual fund firms come calling for bank loans.
Jan 03, 1996; ... To most banks, mutual fund companies are formidable rivals in the contest to capture savings dollars. But to a handful of big banks, fund companies have become an important new cluster of borrowers.The mutual fund industry's extraordinary growth - assets have doubled to $2.7 ...
Out-of-state banks are ready to fight for share of crowded Chicago market.
Jan 03, 1996; ... CHICAGO If Thomas Ricketts sounds a little cocky when he says his thrift, Standard Federal Bancorp., will be able to grow quickly in Chicago, that's because he believes no bank has truly dominated the Second City.Through the acquisition of Chicago's $1.9 billion-asset Bell ...
Merrill Lynch downgrades the stocks of 4 regionals.
Jan 03, 1996; ... The bank stock bears at Merrill Lynch came out of hibernation early, downgrading several regionals and hinting that more downgrades are in the offing.In a joint report titled "Pulling the Plug," analysts Sandra J. Flannigan, Livia S. Asher, and Judah S. Kraushaar on Tuesday ...
Banks must start collecting CRA loan data.(Community Reinvestment Act)(Brief Article)
Jan 03, 1996; ... Regulators have rejected industry pleas to delay a requirement that banks and thrifts collect Community Reinvestment Act data on small- business and farm loans.Instead, the data collection rules took effect Jan. 1, as planned.The Consumer Bankers Association, American ...
Budget crisis seen undermining thrift fund.(Savings Association Insurance Fund Industry)(Brief Article)
Jan 03, 1996; ... A drawn-out federal budget deadlock could throw the thrift deposit insurance fund into a "death spiral," an industry advisory panel said."Delay well into 1996 will be a serious gamble of taxpayer funds," the Savings Association Insurance Fund Industry Advisory Committee argued in ...
Leach warns banks he'll move Glass-Steagall bill without them.(House Banking Committee Chairman Jim Leach)(Brief Article)
Jan 03, 1996; ... WASHINGTON Rep. Jim Leach criticized a group of big banks for locking themselves into an "impractical" position on insurance powers and said he's ready to move his Glass-Steagall bill without their consent.The House Banking Committee chairman appears to have lost patience with the ...
Treasury misses deadline for report on what's ahead in financial services.(Brief Article)
Jan 03, 1996; ... The Treasury Department is late getting ahead of the curve.The department was supposed to report to Congress Dec. 29 on the future of the U.S. financial services industry. But the department missed its deadline, and there are no signs that its agenda-setting study will be ready anytime ...
When the Justice Dept. eases up, look out: if the agency is going soft on lending bias, private class-action suits may not be far behind.
Jan 03, 1996; ... Banking lawyers and civil rights activists said the move foreshadows more litigation rather than less.The Justice Department asked the Fed more than 15 months ago to reject a Barnett acquisition on fair-lending grounds, indicating that the government planned to charge the bank with ...
Small bank wins fight for 'First' in Texas case.(First Bank McKinney wins injunction preventing BankTexas from changing its name to First Bank Texas)(Brief Article)
Jan 03, 1996; ... First Bank McKinney, a suburban Dallas community bank, came out ahead last month in a lawsuit to keep a St. Louis-based holding company from using its name.A state judge ordered a permanent injunction against Houston's BankTexas, which First Banks Inc. bought in 1994, keeping it ...
Latest deal would make Vectra of Denver Colorado's 2d-biggest holding company.(Vectra Banking Corp. buys Bank Land Co.)(Brief Article)
Jan 03, 1996; ... Vectra Banking Corp. of Denver took another step toward consolidating Colorado's fragmented community banking industry last week when it announced the purchase of Bank Land Co., holding company for Southwest State Bank.The deal, valued at $22.3 million and slated to close in the ...
More banks putting directors to work drumming up business.
Jan 03, 1996; ... "The position of bank director is more of a working position today than just one of prestige," said Richard B. Foster Jr., president of Banconsult Inc. in Okemos, Mich. "Banking is so competitive now that they have to use every legitimate asset they have to generate business - and that ...
1st Union chief swears off deals - for banks.(First Union Corp. CEO Edward E. Crutchfield)(Interview)
Jan 03, 1996; ... CHARLOTTE, N.C. Has Edward E. "Fast Eddie" Crutchfield matured into a responsible elder statesman, more concerned with stock price than asset size?The chairman and CEO of First Union Corp. certainly gives every impression that his dealmaking days are behind him. Those transactions, ...
Stock deal with buyout firm frees Fleet to consolidate its purchases. (Kohnlberg, Kravis, Roberts & Company L.P., Fleet Financial Group Inc.)
Jan 03, 1996; ... Fleet Financial Group reached a definitive agreement Tuesday with Kohlberg Kravis Roberts & Co. to convert the buyout firm's dual convertible preferred stock in the New England superregional to common stock.Under the deal, the firm would keep a significant share of the bank holding ...
More refis, consolidation in store, Countrywide's chairman predicts. (Countrywide Credit Industries Inc.'s David Loeb offers views on banking industry, including refinancings)(Brief Article)(Interview)
Jan 03, 1996; ... David Loeb, chairman of Countrywide Credit Industries, has weathered enough industry cycles to know a trend when he sees one.In a telephone interview with the American Banker, Mr. Loeb predicted continued refinancings, responsible players taking the lead, and industry ...
Industry forecast for 1996 is mostly sunny; executives are optimistic despite industry cutbacks, economic uncertainty.
Jan 03, 1996; ... American Banker asked top mortgage business executives and noted industry observers to do a little crystal-ball gazing.Overall, their predictions for 1996 are positive - low interest rates, combined with a decent economy, should provide steady growth for the housing industry. In ...
Few banks up to snuff in electronic services, industry poll suggests.(Brief Article)
Jan 03, 1996; ... While nearly 66% of retail bankers say their electronic banking program saves money, less than 20% believe that their institutions are where they need to be, a survey has found.Banks are making some common mistakes in the way they market electronic banking services, said Richard G ....
Fitech helping smaller banks get on Internet.(Brief Article)
Jan 03, 1996 ... The vendor's new PlusMark service is billed as an affordable way for smaller banks to establish a presence on the Internet and the World Wide Web, and even allow customers to access the bank through this medium.This gives small banks an opportunity to build on their traditional position ...
Prudential Bank to upgrade card processing. (Prudential Bank and Trust contracting with Wheb Systems Inc. for automated processing credit card application processing system)(Brief Article)
Jan 03, 1996 ... Prudential Bank and Trust announced that it would install an automated credit card processing system supplied by Wheb Systems Inc. of San Diego.The new system should help the bank manage an expected increase in credit card application volume over the next few months.The ...
Clearing house group eyes for-profit spinoff. (Arizona Clearing House Association)
Jan 03, 1996; ... The Arizona Clearing House Association may break its industry's not-for-profit mold by forming a profit-seeking subsidiary.The Phoenix-based clearing house, which provides check and automated clearing house services, has hired Ernst & Young to help it study how the unit would be ...
Big-bank insiders switch to selling shares.
Jan 03, 1996; ... Based on insider trading of bank shares in 1995, bankers generally proved themselves to be savvy forecasters of industry trends. It was a roller-coaster year in which rabid insider buying was followed by a rise in selling by insiders - as bankers became convinced that the great stock ride ...
Correction.(to 'Wall Street Sharpshooters' article, on pp. 2A and 4A, Dec 18, 1995 issue)(Correction Notice)
Jan 03, 1996 ... In the "Wall Street Sharpshooters" report that appeared Dec. 18, the "Category Winners" table on page 2A gave the wrong first name for Morgan Stanley analyst David Hilder. So did the "Quarterly Sharpshooters" table on page 5A for thrift analyst Richard Strauss at Goldman Sachs.In ...
Ex-Lehman strategist joins money manager.(Lehman Brothers' chief market strategist Katherine Hensel joins Chancellor Capital Management as vice president and senior equity research analyst)(Brief Article)
Jan 03, 1996; ... Chancellor Capital Management Inc., a $31 billion-asset New York investment management firm, has hired the renowned market strategist Katherine Hensel to follow financial service companies.A top ranked bank analyst, Ms. Hensel became chief market strategist at Lehman Brothers in ...
Investors likely to take a fall along with rates. (prediction by BankAmerica Mortgage Co.'s Claus Lund)(Brief Article)
Jan 03, 1996; ... Lower mortgage rates may be good news for refinance-savvy consumers. But for the nation's portfolio lenders and investors in mortgage-backed securities, it's another story.Claus Lund, senior vice president and head of mortgage asset management at BankAmerica Mortgage Co., is ...
Ex-Procard chief in alliance to market purchasing cards. (consultant Stanley W. Anderson in agreement with Business Dynamics Consulting Inc.)(Brief Article)
Jan 03, 1996; ... Stan Anderson, a consultant who was instrumental in getting banks into the purchasing card business, has formed an alliance with Business Dynamics Consulting Inc. of Nyack, N.Y.Purchasing cards are typically issued to company employees for relatively small business purchases such as ...
Capital One enters cobranding competition with the launch of a Gold's Gym Visa card. (Capital One Financial Corp., Gold's Gym International Visa card)(Brief Article)
Jan 03, 1996; ... Capital One Financial Corp. is adding a little muscle to its portfolio by issuing a cobranded Gold's Gym International Visa card this week.While Capital One, one of the top 10 credit card issuers with $10.2 billion in receivables, offers a number of affinity cards, spokeswoman Diana Sun ...
State St. to handle custody for Magellan Fund. (State Street Boston Corp.)(Brief Article)
Jan 03, 1996; ... State Street Boston Corp. has completed an end-of-the-year deal to provide custody services for the world's largest mutual fund. Last week, the banking company was awarded the custody contract for Fidelity Investments' $53 billion-asset Magellan Fund. State Street replaces Brown Brothers ...
Small Calif. banks seeing gains from check image statements.
Jan 03, 1996; ... Several small California banks and one large thrift say that check image statements have given them a marketing edge over the state's largest banks, many of which are committed to check safekeeping.Late last month, Sanwa Bank signed a contract for image statement software from ...
Bisys adding secure disbursement to its line. (contract with Bottomline Technologies Inc.)(Brief Article)
Jan 03, 1996 ... "Our primary motivation is to ensure that our clients have quick access to 'best of breed' products; where they are invented is irrelevant as long as we can work with the manufacturers," said Paul Bourke, president and chief operating officer of Bisys.Branchgard allows branch ...
Fannie's plan to buttress capital getting cheers from investors.(Federal National Mortgage Association)
Jan 04, 1996; ... Fannie Mae is getting a lot of mileage out of a plan to restructure its capital.The plan has already drawn the highest form of praise from investors: a jump in the stock price. Securities analysts have also endorsed the plan, and some say they are expecting the shares to push even ...
BofA, Chase, Chemical win lead on $4.8B Northrop loan.(Northrop Grumman Corp. acquisition loan)
Jan 04, 1996; ... Chase Manhattan Bank, Chemical Banking Corp., and BankAmerica Corp. have won the lead on a $4.8 billion loan for Northrop Grumman Corp.'s acquisition of the defense businesses of Westinghouse Electric Corp.The loan backs the $3 billion all-cash acquisition that was announced ...
Profitability keeps cards at top of banks' charts. (credit cards)
Jan 04, 1996; ... Despite rising delinquency rates and other reasons for skittishness, credit card lending still has profitability on its side.Card issuers registered a 3.60% return on their average outstandings in 1995, investment banker Robert K. Hammer estimated.Although that was a drop ...
Mellon taps a banking pro for Dreyfus as it works to spur lagging fund sales.(Mellon Bank Corp., William T. Sandalls, Jr., chief financial officer)(Brief Article)
Jan 04, 1996; ... Mellon Bank Corp. has tapped a veteran retail banking executive as chief financial officer of its Dreyfus Corp. mutual fund subsidiary.The appointment of William T. Sandalls Jr. is the latest in a string of high-level hirings at Dreyfus designed to revitalize the giant mutual fund ...
First Western of Florida settles with Fed.(Federal Reserve Board)(Brief Article)
Jan 04, 1996; ... The Federal Reserve Board said First Western Bank of Cooper City, Fla., has agreed to withhold dividend payments, create a capital-adequacy plan, and refrain from purchasing indirect car loans.The concessions settle charges by the Fed and the Florida banking commissioner that the ...
World Savings tops list of Calif. mortgage lenders serving poor, minorities.(Greenlining Institute report)(Brief Article)
Jan 04, 1996; ... World Savings Bank took top honors in a recent ranking of mortgage loans made to low-income minorities by California banks and thrifts.A Dec. 28 Greenlining Institute report found that the Oakland- based thrift made about 39 loans to low-income minority borrowers per billion ...
Banks, divided over insurance, fail to rally around Glass-Steagall bill.
Jan 04, 1996; ... Since the Depression, repeal of Glass-Steagall has been a rallying cry for the banking industry. But after House Banking Committee Chairman Jim Leach spent all of 1995 fighting to remove restrictions on bank underwriting powers, the biggest opponents of repeal are banks themselves. ...
N.H. credit union set to become mutual savings bank. (Awane Credit Union)(Brief Article)
Jan 04, 1996; ... Awane Credit Union, Peterborough, N.H., is on the verge of becoming the second credit union ever to convert to a mutual savings bank.The National Credit Union Administration on Dec. 14 approved the $10 million-asset institution's proposal to switch charters to a federal savings ...
An upstate N.Y. thrift puts off suitors with its own expansion. (MSB Bancorp Inc.)(Brief Article)
Jan 04, 1996; ... If there ever was a bank that didn't want to sell, it is certainly $460.6 million-asset MSB Bancorp, of Goshen, N.Y.The latest spurned suitor is Buffalo-based First Empire State Corp., with $11.8 billion in assets and 162 offices, including 22 branches in the Hudson Valley region ...