American Banker articles from March 1996

American Banker back issues from March 1996:

Profit surge helps to make case for worth of bank brokerages. (retail brokerages increase in profit)

Mar 01, 1996; ... ###JOHN KIMELMANAt a time when bank executives are scrutinizing their retail brokerage activities more closely than ever, these businesses are beginning to put up some pretty good numbers.Spurred by strong sales of stock mutual funds, 15 large brokerage units tracked by ...

Amex accepts bank cards' standard for the Internet. (American Express Co.)(Brief Article)

Mar 01, 1996; ... ###VALERIE BLOCKAmerican Express has fallen into line behind the technical standard that MasterCard and Visa negotiated for card payments over the Internet.American Express said Thursday that it will use software from Microsoft Corp. that will enable secure processing of ...

Latest defection from Bankers Trust: syndication chief to Morgan Stanley.(Bankers Trust New York Co.; Morgan Stanley and Co.; L. Bram Smith)

Mar 01, 1996; ... ###DANIEL DUNAIEFBankers Trust New York Corp. has suffered another high-level defection, losing managing director L. Bram Smith to Morgan Stanley & Co.Mr. Smith will lead the fledgling origination, syndication, and bank loan trading efforts at Morgan Stanley, mirroring ...

Bill would let banks invest in small-business borrowers. (proposed Entrepreneurial Investment Act)

Mar 01, 1996; ... ###BILL McCONNELLBanking companies could become major small-business investors - not just lenders - under a bill introduced this week by Rep. Richard Baker.Rep. Baker, chairman of the House Banking Committee's capital markets and securities subcommittee, wants to allow ...

Lawmaker, bank groups blast new credit union for farmers. (Countryside Credit Union for the Wisconsin Farm Credit System)

Mar 01, 1996; ... ###JUSTIN FOXThe chartering of a credit union for Wisconsin Farm Credit System borrowers has unleashed a fire storm of criticism from rural banks and their political allies.On Wednesday, two banking groups and three banks sued to halt the opening of Countryside Credit ...

Study backs OTS claims that thrifts are sound.(Office of Thrift Supervision)(Brief Article)

Mar 01, 1996; ... ###JUSTIN FOXThe Office of Thrift Supervision, which has argued repeatedly that today's thrifts aren't any riskier than banks, released a study Thursday to back up its claim.The survey of bank and thrift failures from 1985 to 1995, conducted by OTS senior economist Eric ...

Mich. regulator sues OCC over ruling that let bank branch across state lines. (Michigan; Patrick M. McQueen; Office of the Comptroller of the Currency)(Society Bank, Michigan, allowed to branch into Indiana)(Brief Article)

Mar 01, 1996; ... ###BARBARA F. BRONSTIENMichigan's financial institutions commissioner this week made good on a threat to sue the Office of the Comptroller of the Currency over its aggressive use of an interstate banking loophole.Patrick M. McQueen accused Comptroller Eugene A. Ludwig of ...

$340 million fine against Daiwa seen as strong warning by U.S.(Daiwa Bank Ltd. punished for deceiving bank regulators)

Mar 01, 1996; ... ###JARET SEIBERGDaiwa Bank Ltd.'s decision to plead guilty to 16 criminal charges and pay $340 million in fines should send a clear signal that banks will pay dearly if they try to deceive federal regulators, lawyers said."The government has certainly sent a message to ...

Audit cites cost of student loan collection plan. (Department of Education audit of collection plan for defaulted student loans)

Mar 01, 1996; ... ###OLAF de SENERPONT DOMISA government plan to collect defaulted student loans would cost $38 million and require an 1,100% increase in collections to break even, a Department of Education audit says.The department's inspector general said in a report last month that the ...

Adjustable-rate loans losing luster in Golden State.(Brief Article)

Mar 01, 1996; ... ###JULIANA RATNERCalifornia borrowers are ending their love affair with adjustable-rate mortgages, according to a recent study.DataQuick Information Systems, La Jolla, Calif., found that 22% of California homebuyers in January funded their purchases with adjustable rate ...

Fannie chief to lead D.C.'s Kennedy Center. (James A. Johnson)(Federal National Mortgage Association)(Brief Article)

Mar 01, 1996 ... James A. Johnson, chairman of the Federal National Mortgage Association, has been named to the unpaid job of chairman of the John F. Kennedy Center for the Performing Arts.The Fannie Mae chief succeeds James D. Wolfensohn, who became chairman emeritus on Jan. 1 ...

Ohio's FirstFederal to buy home lender.(FirstFederal Financial Services Corp. acquires Mobile Consultants Inc.)(Brief Article)

Mar 01, 1996 ... FirstFederal Financial Services Corp. announced it had agreed to acquire Mobile Consultants Inc.Mobile originates and services loans on manufactured homes for other financial institutions, and currently does business in 21 eastern states. Originations ...

Countrywide unit takes new name. (Countrywide Funding Corp. renamed Countrywide Home Loans Inc.)(Brief Article)

Mar 01, 1996 ... Countrywide Funding Corp., the main lending unit of Countrywide Credit Industries, has been renamed Countrywide Home Loans Inc.The change, effective today, is intended to make the company's ...

B of A: servicing deal should raise profile in midwest. (Bank of America Inc. deal with First Bank System)(Brief Article)

Mar 01, 1996; ... ###SNIGDHA PRAKASHBank of America expects its $14 billion purchase this week of servicing rights from First Bank System to strengthen its name recognition among Midwest consumers, said Arthur Ringwald, who heads the California bank's mortgage division."Our name in ...

ABN Amro unit challenging First Chicago on two fronts. (ABN Amro North America Inc.; First Chicago NBD Corp.)(Brief Article)

Mar 01, 1996; ... ###BRETT CHASEOfficials at ABN Amro North America Inc. say they have an aggressive strategy to overtake First Chicago NBD Corp. as the No. 1 retail bank here while cutting into that company's one-third share of middle market lending.The $50 billion-asset unit of the ...

Poison pill 1st Commerce's way of getting potential acquirers to consult with its board.(current stockholders can buy shares of the bank at half their market value if a single acquirer buys 10% of the bank)(Brief Article)

Mar 01, 1996; ... ###KENNETH CLINEFirst Commerce Corp.'s adoption of antitakeover provisions was probably not spurred by any immediate hostile action but rather by a desire to protect the New Orleans-based bank during a period of earnings weakness, analysts said.First Commerce, ...

U.S. Bancorp plans 200 new in-store branches, 170 with grocery chain. (Albertson's Inc.)

Mar 01, 1996; ... ###BARTON CROCKETTU.S. Bancorp has joined the new wave of banks planning a big push into supermarket banking.The Portland, Ore.-based bank company said Wednesday that it plans to open about 200 branches in supermarkets during the next four years, 170 of which will be in ...

Credit Unions are relying more on fee income.

Mar 01, 1996; ... ###CHRISTOPHER RHOADSCredit unions charge lower and fewer fees than banks, a fact touted by the industry's largest trade group in a survey released last week.The results, based on responses from 1,114 credit unions, showed that far fewer credit unions than banks charge ...

U.S. Bancorp buyout seen creating an opening for small banks. (planned purchase of California Bancshares)

Mar 01, 1996; ... ###R. KEVIN DIETRICHU.S. Bancorp's planned acquisition of California Bancshares is more of an opportunity than a threat, say some Northern California community banks.The merger, announced in mid-February, would remove nine locally based institutions from the region and ...

Most small banks need help in fulfilling new risk-control mandate.(Federal Reserve supervisory release 95-51)(Column)

Mar 01, 1996; ... ###KIM McFALLCommunity bankers who regularly survey the regulatory scene recognized the FDIC Improvement Act as an clarion call for renewed emphasis of internal control and risk management.The law, enacted 1991, mandated that banks or thrifts with assets of $500 million ...

Eagle of Conn. acquires Shawmut, Fleet branches. (Eagle Financial Corp.; Shawmut National Corp.; Fleet Financial Group)(Brief Article)

Mar 01, 1996 ... Eagle Financial Corp. has completed its purchase of four former Shawmut National Corp. branches and one Fleet Financial Group Inc. branch in greater Hartford.Eagle will also consolidate two of its existing branches into new branch sites.The branches were divested by ...

Wisconsin bank moves to buy branch in Iowa. (Fortress Bancshares to buy Boatmen's Bank of North Iowa's Cresco branch)(Brief Article)

Mar 01, 1996 ... Fortress Bancshares has announced a definitive agreement to acquire its first branch in Iowa.The company, intends to acquire the $34 million-asset Cresco, Iowa, branch office of Boatmen's Bank of North Iowa. The acquisition, subject to regulatory ...

Chittenden Corp. wraps up purchase of Flagship of Mass. (Flagship Bank and Trust Co.)(Brief Article)

Mar 01, 1996 ... Shareholders of Flagship Bank and Trust Co. have approved its acquisition by Burlington, Vt.-based Chittenden Corp. for $37 million in stock.The transaction, which has been approved by federal regulators but is still subject to state approval, is expected to close by today. ...

Bankers fear fallout when the skyrocketing stock market falters.

Mar 01, 1996; ... ###HOWARD KAPILOFFThe stock market's phenomenal rise is giving some bankers cause for concern over how to keep customers calm when the market eventually dips.The anxiety comes as many banks have shifted from selling mostly bond mutual funds to the more risky stock funds ...

Two trust companies in Indiana to merge. (ANB Corp. acquiring Northern Indiana Trust Co.)(Brief Article)

Mar 01, 1996; ... ###Katharine FraserANB Corp. said it will acquire Fort Wayne-based Northern Indiana Trust Co. in a cash transaction.The Muncie, Ind.-based banking company signed a letter of intent, but did not disclose the value or the terms of the agreement.Paul L. Sehnert ...

Debtors seen turning too quickly to bankruptcy.

Mar 01, 1996; ... ###ROBERT JENNINGSWith personal bankruptcy rates growing, Visa International convened a roundtable on the issue Wednesday in San Francisco .The 16 people who attended the Visa Consumer Bankruptcy Exchange included bankruptcy lawyers, judges, creditors, professors, ...

Cobranded card issuers beginning to compete on price, study finds. (credit cards)

Mar 01, 1996; ... Issuers of cobranded credit cards managed for several years to avoid the fierce pricing wars of the card business, but according to a recent study, such cards are no longer above the fray.The study, conducted by Behavioral Analysis Inc. of Tarrytown, N.Y., shows that more than 50% ...

MasterCard in point of sale marketing pact with Hypercom.(Brief Article)

Mar 01, 1996; ... ###VALERIE BLOCKMasterCard International said it has signed a global agreement with Hypercom Inc. that will give its members discounts on point of sale terminal purchases.The deal follows one inked in August with Verifone Inc., the largest manufacturer of point of sale ...

Gripes may bring better electronic bill payment.

Mar 01, 1996; ... ###KAREN EPPERRecent criticism of electronic bill payment operations has not shaken the conviction of banks and service providers that the services have consumer appeal.But the complaints, rooted in the fact that the payments are often paper-intensive on the commercial ...

Servantis, Prodigy in marketing pact for home banking.(Brief Article)

Mar 01, 1996; ... ###TRACEY TUCKERServantis Systems Inc. has announced a home banking partnership with Prodigy Services Co.The cooperative marketing deal, whose financial terms were not disclosed, would help banks use Prodigy, the popular on-line service, to deliver home banking services ....

1st Union Card issue clears way for more offerings. ($995 million public offering)

Mar 01, 1996; ... ###JAMES C. ALLENA successful credit card securitization by First Union Corp. last week has set the stage for a number of commercial banks looking to tap the asset-backed securities market as another funding tool.The $995 million offering - the company's first public ...

Card specialists still rated as 'buy,' despite growing risk.(credit and charge card issuers)(Brief Article)

Mar 01, 1996; ... ###STEPHEN KLEEGECredit and charge card issuers face the potential for worse credit losses than in previous economic cycles, but shares in the card specialists are still a good buy, a recent report by Sanford C. Bernstein & Co. concludes.Bernstein analysts maintained ...

Advisers bag record fees on First Interstate. (investment banking adviser fees on First Interstate Bancorp merger)

Mar 04, 1996; ... Sometimes, it pays to lose.Morgan Stanley & Co. and Goldman, Sachs & Co. - hired last fall to help First Interstate Bancorp fend off Wells Fargo & Co. - will net more than $22 million apiece now that Wells' takeover bid has succeeded.Those amounts include the $10 million ...

2 leading ATM networks form superregional giant. (Honor and Most automated teller machine networks to merge)

Mar 04, 1996; ... Honor and Most, two of the nation's largest electronic banking networks, have agreed to merge.Together they will serve much of the eastern part of the country with 19,200 automated teller machines and will process 45 million transactions a month, Honor and Most officials estimated ...

Ill. thrift chief sets course for commercial lending. (First Federal Bank for Savings president Larry Gillie)

Mar 04, 1996; ... Larry Gillie wants his old-fashioned thrift to make money the new- fashioned way: through commercial banking.The former commercial banker is eager to steer First Federal Bank for Savings, whose performance has been lackluster for several years, back toward his own roots. Commercial ...

Nation's small banks, on a roll, hit Las Vegas for view of future. (includes related article on Independent Bankers Association of America president Leland M. Stenehjem)

Mar 04, 1996; ... Five years ago, it might have seemed embarrassingly appropriate to hold a major banking convention in Las Vegas, a town synonymous with gambling and big-time losses.But as the Independent Bankers Association of America gathers in Sin City for its annual convention this week, the ...

Technology, cooperation needed to stem growth of financial crimes.

Mar 04, 1996; ... Banks are besieged by staggering levels of international crime. Credit card fraud costs roughly $3 billion a year worldwide - half of that in the United States. Money laundering, most of it drug-related, moves $300 billion through U.S. banks each year.These alarming numbers could ...

Operating loans still big for small ag banks. (agricultural banks)

Mar 04, 1996; ... While farm operating loans have retained their importance at small banks, they have become a much smaller part of big banks' business, an American Banker analysis shows.A study of call report data from Sheshunoff Information Services shows that the total dollar amount of farm ...

Low-cost Merrill account luring small businesses. (Merrill Lynch & Co. offers cash management account)

Mar 04, 1996; ... Merrill Lynch & Co. is wrenching small-business financial assets away from banks using a full-featured cash management account with pricing that makes it hard to resist.The account presents an appetizing array of common bank services including a line of credit up to $5 million, ...

BT fund family targets retail investors. (Bankers Trust New York Corp. introduces family of mutual funds)(Brief Article)

Mar 04, 1996; ... Bankers Trust New York Corp. has launched a family of mutual funds it hopes will appeal to retail investors.The banking company's 10-portfolio BT Advisor Funds will be sold through national and regional brokerages, as well as by financial planners and mutual fund networks such as ...

Fidelity units PC service eases branch brokers' access to data. (Fidelity Investments' National Financial Services Corp.)(Brief Article)

Mar 04, 1996; ... National Financial Services Corp., a bank brokerage clearing firm owned by Fidelity Investments, has introduced a computer service to help brokers in remote branches gain quicker access to financial information gathered at the home office.The service, called Maxxnet, will allow ...

Group's efforts to lure conferees get mixed reviews. (Bank Securities Association)

Mar 04, 1996; ... Stung by criticism that it doesn't know how to draw bankers to its conferences, the Bank Securities Association earlier this year hired a new administrative director and entrusted him with the task of building interest.Under Tom Cote's leadership, the trade organization has created ...

Debit card takes center stage at industry conference. (Faulkner & Gray's Debit Card Forum)

Mar 04, 1996; ... If packaged and marketed appropriately, a debit card can be positioned as the key to the relationship between a bank and its customers, according to Robert D. Sznewajs, the vice chairman of U.S. Bancorp.Mr. Sznewajs recommended, however, that the card not be limited to use at ...

MBNA Corp., seeking a competitive edge, offers platinum card.

Mar 04, 1996; ... MBNA Corp. has gone platinum.The big credit card issuer is following in the gigantic footsteps of American Express Co. - and the smaller steps of a Nebraska bank - by marketing a premium card for upscale customers.Wilmington, Del.-based MBNA released details last week of ...

N.C. bank aims to enter Ga. by starting a thrift. (First Citizens BancShares)

Mar 04, 1996; ... A North Carolina bank plans to use a federal loophole pioneered by BankAmerica Corp. to apply for a de novo thrift charter in Georgia.First Citizens Bancshares, Raleigh, said last week that it would apply to the Office of Thrift Supervision to establish a federal savings bank in ...

2d senior exec quits Integra ahead of sale to National City. (Integra Bank of Pittsburgh president Gayland B. Cook resigns prior to merger with National City Corp.)(Brief Article)

Mar 04, 1996; ... Integra Financial Corp., the Pittsburgh-based banking company that will soon merge with Cleveland-based National City Corp., has lost another senior executive, the second to depart since the beginning of the year.Integra said last week that Gayland B. Cook, president of Integra ...

State Street's unit trust servicing business reportedly cost Bank of N.Y. $15M to $30M. (Bank of New York Co. acquires Investors Fiduciary Trust Co.'s unit investment trust servicing business)(Brief Article)

Mar 04, 1996; ... Analysts say that Bank of New York Co. probably paid $15 million to $30 million for the unit investment trust servicing business of Investors Fiduciary Trust Co., a subsidiary of State Street Boston Corp.The purchase, which closed Friday, will add immediately to earnings, Bank of ...

Consumers' confidence rose in Feb., improving the homebuying outlook. (Conference Board confidence index rises during February, 1995)(Brief Article)

Mar 04, 1996; ... The latest word from the Conference Board is that consumers aren't nearly as disenchanted as they had seemed in January. The board's confidence index bounced back 8.6 points in February, reaching 97.0, after having plunged more than 10 points in January."The bounce back of consumer ...

Ignoring exodus, two lenders create new mortgage units. (Pennrock Financial Services Corp., Imperial Credit Industries)

Mar 04, 1996; ... As banks and lenders trip over one another in their rush to exit the volatile home loan market, two contrarians are sticking with the business.Pennrock Financial Services Corp., Blue Ball, Pa., has formed a new mortgage subsidiary, Atlantic Regional Mortgage Corp.And ...

Some analysts losing patience with Ahmanson.(H.F. Ahmanson and Co.)

Mar 04, 1996 ... Charles Rinehart has been planning a bright future for H.F. Ahmanson & Co. in the brave new world of high returns through consumer finance.On the strength of his consumer finance background, security analysts have been willing to wait and see - and even cheer him on.Now ...

Tech stocks take beating as market decelerates.(stocks of bank technology companies)(Brief Article)

Mar 04, 1996; ... Bank technology stock prices took a battering last week as nervous investors fled to the sidelines in both equities and bonds.While the blue-chip companies in the Dow Jones industrial Average rebounded slightly Friday after a weeklong decline, the technology firm laden Nasdaq ...

Wall St. licking its chops at possible Moneygram IPO.(initial public offering of Moneygram stock as part of its spinoff from First Data Corp.)(Brief Article)

Mar 04, 1996; ... Wall Street thinks the contemplated spinoff of Moneygram, the consumer funds transfer network that First Data Corp. agreed to divest, would be a hit with investors, who seem fascinated with anything involving electronic commerce.First Data agreed to the divestiture last year so it ...

NationsBank to offer PC banking via Meca product.(to offer home banking service using MECA Software Inc.'s personal finance software package)

Mar 04, 1996; ... NationsBank Corp. has unveiled plans to offer a PC banking service through Meca Software Inc.'s Managing Your Money personal finance software.The announcement marks the first time a bank has committed to using the software for home banking since NationsBank and BankAmerica Corp. ...

Many specialty finance stocks revived by earnings surprises.

Mar 04, 1996; ... Like a boxer coming back from a standing eight-count to win a bout, stocks of many specialty finance companies have shaken off a bruising they received last fall and are approaching all-time highs.Strong fourth-quarter earnings reports and solid credit quality have quelled investor ...

More easing expected despite Treasuries' rise.(yield on Treasury securities rise; signs of inflation increase)(Brief Article)

Mar 04, 1996; ... Interest rates are rising, and suddenly so is inflation. It looks as though the economy is poised to rebound, after skirting what Federal Reserve Chairman Alan Greenspan has called a "soft patch."Since the Fed last eased credit Jan. 31, the yield on the 30-year Treasury "long" bond ...

Buybacks seen good use of excess capital.(by Salomon Brothers Inc. Managing Director Carole S. Berger)(Interview)

Mar 04, 1996; ... In a few short years, capital levels of American banks have risen dramatically. Banks that were pushed by regulators to increase capital as a cushion against losses, now face pressure from investors to maintain high returns on equity. Salomon Brothers Inc. managing director Carole S. Berger, ...

UJB and Summit complete merger.(UJB Financial Corp. and Summit Bancorp.)

Mar 04, 1996 ... UJB Financial Corp. and Summit Bancorp. have completed their $1.2 billion merger and now will operate as Summit Bancorp.The combined company is New Jersey's largest independent bank with $22 billion in assets and $18 billion in deposits at more than 300 branches in New Jersey and ...

Corrections.(to 'California's Imperial eyeing sale or merger,' p. 9, Jan 22, 1996 issue)(Correction Notice)

Mar 04, 1996 ... A Jan. 22 article, "California's Imperial Eyeing Sale or Merger" (page 9), should have made clear that Imperial Bancorp said that it had ...

Corrections.(to 'Foreign banks jump back into U.S. lending,' p. 1, Feb 28, 1996 issue)(Correction Notice)

Mar 04, 1996 ... A Feb. 28 article, "Foreign Banks Jump Back into U.S. Lending" (page 1), gave the wrong name for the entity that will emerge from the April 1 merger ...

Corrections.(to 'Boston merger offers hot seat to retail chief,' p. 6, Feb 29, 1996 issue)(Correction Notice)

Mar 04, 1996 ... Because of an editing error, a Feb. 29 article, "Boston Merger Offers Hot Seat to Retail Chief," (page 6), misidentified analyst Raimundo C. Archibold's ...

Productivity, salaries and the cost of a dollar. (ratio of salary expense to revenue)(Management Strategies: Innovative Leadership in Financial Services)(Brief Article)

Mar 04, 1996 ... It's a rare bank executive who doesn't extol his employees, at least publicly. But productivity is not only about working hard but also about working smart. And banks, of course, have to design jobs that lead to greater employee productivity and efficiency.One way to measure this ...

Ambitious Whitney burnishes its image in the Big Easy. (Whitney Holding Corp.; New Orleans, Louisiana)(Management Strategies: Innovative Leadership in Financial Services)

Mar 04, 1996; ... Like other banks, Whitney Holding Corp. in New Orleans had its fair share of bad real estate loans during the last recession.And like many old-line commercial lenders, it's been reinventing itself to have a much stronger focus on consumer banking.But few have had to ...

California lawyers setting new pace for bank collections. (Lisa Spiwak and Nick Iezza)(Management Strategies: Innovative Leadership in Financial Services)

Mar 04, 1996; ... When Frank Martinez Jr. just can't get a borrower to repay a loan, he often turns the matter over to the big guns: outside attorneys who specialize in collecting bad debts."The tricky thing is to see how much you can get out of an individual before they file a chapter on you," said ...

Getting rid of branches? Think realty, not just banking. (mergers and consolidation)(Management Strategies: Innovative Leadership in Financial Services)

Mar 04, 1996; ... When banks merge, the biggest cost savings usually come from shedding overlapping branches.But while disposing of excess brick and mortar may look like quick way to slash costs, it can also be a nightmare. Banks face regulatory concerns, the vagaries of local real estate markets, ...

Risk management tool rates high with U.S. Bancorp. (software)(Management Strategies: Innovative Leadership in Financial Services)

Mar 04, 1996; ... Driven by interest rate swings and new value-based accounting rules, U.S. Bancorp has turned to sophisticated risk management software to manage its balance sheet.The result has been less fluctuation in interest margins than in years past. Last year's net interest margin was the ...