American Banker back issues from January 1997:
What's hot and what's not in the banking game.
Jan 02, 1997; ... Banking may be more functional than fun, but that doesn't mean it doesn't have its fair share of fast-breaking trends.With that in mind, American Banker is marking the new year with an admittedly selective list of what's hot and what's not in banking.Sure, it may lack ...
Where cardholders want to be: still Visa, by far, survey finds.(sixth of series)
Jan 02, 1997; ... Sixth of a SeriesIt's Visa by a landslide.The biggest of the credit cards keeps getting bigger in the minds of U.S. consumers, according to the American Banker consumer survey.Repeating a familiar pattern, Visa again widened its lead over MasterCard and other ...
Fed may stop retail sweeps' end run on reserve rules.(Federal Reserve Board to revise reserve requirements)
Jan 02, 1997; ... The banking industry's increasing reliance on sweep accounts may prompt the Federal Reserve Board to revise reserve requirements.Tucked inside a Dec. 26 final rule updating Regulation D, which governs reserve requirements, the Fed signaled substantial changes may be on the way. ...
CRA loan profitability lags, Kansas City Fed survey says.(Federal Reserve Bank of Kansas City survey of bankers reveals Community Reinvestment Act loans not as profitable as conventional loans)(Brief Article)
Jan 02, 1997; ... Only one-quarter of lenders in a survey said loans made under the Community Reinvestment Act are as profitable as conventional loans, according to the Federal Reserve Bank of Kansas City.However, a large majority said revamped CRA regulations had lightened their regulatory load. ...
Federal exam fees eyed for state banks.(Clinton Administration reportedly will propose imposition of federal bank exam fees on state-chartered banks and savings and loan associations)(Brief Article)
Jan 02, 1997 ... The Clinton administration is expected to propose levying federal exam fees on state-chartered banks and thrifts in its fiscal 1998 budget."The decision is very close to being made to include these exam fees in the budget," said Kenneth A. Guenther, executive vice president of the ...
Insurance powers sought for Maine banks.(Maine legislator to consider bill allowing state-chartered banks to sell insurance)(Brief Article)
Jan 02, 1997 ... Maine legislators are expected to take up a bill this month that would for the first time let state-chartered banks sell insurance.The measure, submitted to lawmakers by banking and insurance groups last week, is an attempt to keep Maine-chartered institutions competitive with ...
OCC updates development lending guide.(US Office of the Comptroller of the Currency's community development loans handbook)(Brief Article)
Jan 02, 1997; ... The Office of the Comptroller of the Currency has revised its handbook on community development lending.The reference booklet, first published in 1989 as a guide to help national banks enter or expand community development activities, was updated to include legislative and ...
Fed should follow Comptroller on small-town insurance sales.(Federal Reserve Board, US Office of the Comptroller of the Currency)
Jan 02, 1997; ... The banking industry currently is the beneficiary of what optimistically may be termed a "competition in regulatory excellence."That is, the Federal Reserve Board and the Office of the Comptroller of the Currency appear to be striving to provide the greatest product and service ...
CEO has Dime primed to take on NYC titans; Chase veteran sees thrift's 'focus' as advantage over former employer.(Dime Bancorp Inc. CEO Lawrence Toal)
Jan 02, 1997; ... One thing you can say about the new chief executive of New York City's largest thrift: He knows the competition.Lawrence J. Toal,, who had been president and chief operating officer of $20 billion-asset Dime Bancorp, took the helm this week upon the retirement of James M. Large ...
Calif. next battleground in fight over surcharges for noncustomer ATM use.(bill outlawing automated teller machine-fees for noncustomers introduced in California Assembly; credit card industry releases banks from no-fee pledge)(Brief Article)
Jan 02, 1997; ... California will be the next state to consider whether banks should be allowed to charge noncustomers for using automated teller machines.A state lawmaker introduced a bill last month that would ban such fees. The bill, expected to be debated soon, would most directly affect ...
BankAmerica seen in market to buy small securities firm.
Jan 02, 1997; ... BankAmerica Corp. has stepped up its efforts to acquire a regional investment banking firm and may try to do a deal within a few months, according to a banking analyst."They would very much like to have an equity underwriting capability," said Raphael Soifer of Brown Brothers, ...
India: a land of opportunity for U.S. banks.
Jan 02, 1997; ... As banking opportunities go, few countries hold as much promise as India.Real growth in gross domestic product, which sank to a low of 1.2% in 1991, climbed back to 7% last year and is expected to settle at 6.6% for 1996, according to Thomson BankWatch, a New York-based credit ...
Hibernia to advise Belize government on project finance.
Jan 02, 1997; ... Hibernia Corp. has been obtained an unusual mandate from the Central America country of Belize to advise its central bank on selecting and arranging financing for government infrastructure projects.Analysts appeared surprised by the announcement, saying this is the first time a ...
Mortgages seen bringing in other business for Mercantile.(Mercantile Bancorp Inc.)
Jan 02, 1997; ... Stanley J. Bradshaw is wasting no time mapping out strategies for the mortgage operation he is to command once Mercantile Bancorp. buys Roosevelt Financial Group."We'll be a chief relationship builder," Roosevelt's 39-year-old chairman and chief executive said in a recent ...
When used properly, computer credit scoring can benefit everyone.(Column)
Jan 02, 1997; ... Credit scoring, a computerized system used by many lenders to review loan applications, has fast become one of the hottest topics of the financial industry. Though it has been widely used to qualify borrowers for credit cards and auto loans, its adoption in the mortgage industry has been met ...
After ordeal by regulator, thrift throws in the towel; finally, Sunshine in Maine.(Federal Reserve Board forbids BancSecurity Corp.'s acquisition of Marshalltown Financial Corp.; First National Bank of Bar Harbor begins turnaround after fraud scandal forces resignation of chief executive officer)(Brief Article)
Jan 02, 1997; ... Don't look to the federal government for consistency.At least that's the lesson learned by Ronald E. Fenton, chief executive of BancSecurity Corp., Marshalltown, Iowa, after a yearlong effort to acquire a neighboring thrift. The two federal agencies charged with deciding whether ...
Customer's insolvency to force $1.3M provision by Pa. thrift.(Main Line Bank to boost reserves to cover potential losses from bankruptcy of major client)(Brief Article)
Jan 02, 1997; ... A thrift on Philadelphia's legendary Main Line will take a big hit because a customer that sells trucks has filed for bankruptcy.Fraud may have been involved, the thrift says.Main Line Bank, a subsidiary of Villanova-based ML Bancorp, said it would add $1.3 million to ...
Investor group drops plan to boost stake in California bank.(Basswood Partners LP terminates request to increase ownership stake in SC Bancorp to over 10%)(Brief Article)
Jan 02, 1997; ... A shareholder group backed off a plan to buy a larger stake in a California bank but is still pushing for its sale.Basswood Partners LP, a New Jersey investment partnership not known for shareholder activism, has withdrawn its request with the Federal Reserve to increase its 9.77% ...
Deal could help Aegon get big in variable annuities.(acquisition of Providian Corp. gives Dutch bank a major position in US bank insurance market)(Brief Article)
Jan 02, 1997; ... Buying Providian Corp. could help Aegon NV, already a major force in sales of fixed annuities through banks, become a big seller of variable annuities, too.The acquisition would give the Dutch financial services company access to Providian's Marquee variable annuity, said David ...
Analysis tool aids State St. pitch to rich.(State Street Bank and Trust Co.'s personal trust operation)
Jan 02, 1997; ... State Street's personal trust group has introduced a quantitative analysis model to add technical finesse in how it diversifies the assets of its wealthiest clients.Boston-based State Street Bank and Trust Co. started using a risk-management software program in its trust division ...
How banks can share in profits from the making of annuities.(Column)
Jan 02, 1997; ... Today most banks can sell annuities but are generally restricted from manufacturing them. Through "co-opetition," or cooperative competition, there may be a way for a bank and an insurance company to share manufacturing profits.The experience gained from co-opetition may give the ...
Debit use takes off; ATM cards hit a wall; getting the hang of a cash alternative, 40% of consumers have debit cards.
Jan 02, 1997; ... Debit has finally arrived.Largely because of the growing popularity of the MasterCard and Visa debit brands, which are having a noticeable impact alongside ATM cards at the point of sale, 40% of financial consumers say they have debit cards, according to the American Banker ...
The next breakthrough is years away, bankers say. (automated teller machine cards)
Jan 02, 1997; ... If the automated teller machine card is the key to the bank, then a lot of people appear to be permanently locked out.The latest American Banker/Gallup Consumer Survey found that 66% of financial institution customers - people with at least one type of deposit or loan account - ...
Citi giving face-lift to clunky remote software; Windows version of free home banking package is probable this year.(Citicorp's Business Access software package)
Jan 02, 1997; ... For years, Citicorp's remote banking software has been known as the dray horse of the industry: It may not be particularly pretty, but it has been around a long time and gets the job done.Now Citicorp is aiming to turn its 10-year-old stable of computer banking products into ...
1st Tennessee to buy back up to $130M in stock.(First Tennessee National Corp.)(Brief Article)
Jan 02, 1997; ... First Tennessee National Corp.'s board said Friday it has approved the repurchase of up to $130 million of common stock.The Memphis-based company may fund the buyback in part with proceeds from trust-preferred securities issued in the last two months, said Elbert Thomas, chief ...
Mutual funds specializing in financial services returning 29%, but lag individual bank stocks.(Brief Article)
Jan 02, 1997; ... Mutual funds that specialize in stocks of financial services companies have soared in 1996, but not as high as individual bank stocks.Through Dec. 26, financial services funds posted total returns of 28.66%, outpacing the 19.61% return for general equity funds, according to Lipper ...
Banks stumble out of 1996 as bullish economic data revive investors' rate fears.(banks stock prices drop on Dec 31, 1996)(Brief Article)
Jan 02, 1997; ... Bank stocks fell with the rest of the market on the last day of 1996.The Standard & Poor's bank index dropped tktkt, while the Dow Jones industrial average declined tktkt by midafternoon Tuesday.Market watchers attributed the declines to program trading combined with a ...
Banks more willing to offer advice with derivatives sales.
Jan 02, 1997; ... As risk management grows in popularity throughout corporate America, banks are becoming bolder in their willingness to dispense advice along with the sale of derivatives.Although consulting doesn't bring in nearly as much money as other areas of risk management, analysts say banks ...
A race to serve midsize firms in capital markets.
Jan 03, 1997; ... Banks are rolling out the red carpet to welcome midsize companies to a club that until recently was restricted to the biggest corporations: the capital markets.First Union Corp. enlarged its capital markets group by 20% to 1,800 in 1996 and will add another 11% this year to work ...
Serious card delinquency hits unprecedented level.
Jan 03, 1997; ... Contrary to some recent hopeful signs in consumer credit quality, the most seriously delinquent credit card loans have climbed to record levels.As tracked by Veribanc Inc., bank card loans at least 90 days past due or in nonaccrual status surpassed $4 billion in the third quarter. ...
In rush to the Net, most PC owners bypass banks. (Internet)(home banking services)(last of series)
Jan 03, 1997; ... Among the millions of consumers feasting on the Internet and on-line computer services, electronic banking satisfies few appetites.In the latest American Banker/Gallup consumer survey, banking by personal computer was a mere blip on the on-line horizon.Between the 1995 ...
... But finance companies find reason for cheer amid rising consumer woes.(Serious card delinquency hits unprecedented level)
Jan 03, 1997; ... To most lenders, rising credit card delinquencies, high consumer debt levels, and record bankruptcy filings look like danger signs. But to finance companies that cater to homeowners with shoddy credit histories, they signal good times.At this time of year, when consumers are ...
Home loan banks get power to set salaries of their presidents.(federal home loan banks)(Brief Article)
Jan 03, 1997; ... The Federal Housing Finance Board on Thursday handed over responsibility for setting the salaries of the 12 Federal Home Loan Bank presidents to their boards of directors.The new rule, published in Thursday's Federal Register, is part of the agency's effort to farm out day-to-day ...
Courts: banks not liable for clean-up costs.(federal appeals court ruling grants banks immunity from liability for cleanups on foreclosed properties)(Brief Article)
Jan 03, 1997; ... The banking industry's long battle to shield itself from liability for environmental cleanups on foreclosed properties may finally be over.The federal appeals court in Cincinnati has ruled that recently enacted amendments to the Superfund law prevent litigants from suing banks ...
Regulatory focus on capital seen hurting bank stocks.(Federal Reserve Bank of Atlanta reports publicly traded banks suffer on stock market from capital requirements)(Brief Article)
Jan 03, 1997; ... Publicly traded banks often face a no-win situation in the eyes of the stock market when trying to meet capital regulations, according to the Federal Reserve Bank of Atlanta.Federal regulators in the 1990s have sharpened their sights on banking institutions' capital ratios as a way ...
Progress on wider powers is win for insurers, too.(extension of bank insurance marketing powers)(Column)
Jan 03, 1997; ... In between bowl games, some will turn attention to New Year's resolutions. Here are some musings for life insurers, bankers, and other financial intermediaries to ponder as the New Year's prospect of real reform for financial services remains uncertain.A coalition of insurance ...
Rush on Northeast's bigger thrifts seen likely.(savings and loan associations in Northeast expected to become takeover targets for acquisitive commercial banks)
Jan 03, 1997; ... With thrifts and commercial banks across the country pairing off as frequently as couples in a Virginia reel, analysts say it won't be long before some of the Northeast's largest savings institutions start to attract attention.This year could be the one in which deposit-rich ...
J.W. McDowell, W.S. Williams Jr. elected to board of Richmond Fed.(multiple brief articles about appointments to Federal Reserve Banks of Chicago and Richmond and to Indianapolis Federal Home Loan Bank of Indianapolis)(Brief Article)
Jan 03, 1997; ... The Federal Reserve System's board of governors has elected J. Walter McDowell and Wesley S. Williams Jr. as class A directors of the Federal Reserve Bank of Richmond.Mr. McDowell is the president and ...
Hibernia Corp.(promotes Leo Nelson to Bastrop city president)(Brief Article)
Jan 03, 1997 ... Hibernia Corp., New Orleans, has promoted Leo Nelson to Bastrop city president. He succeeds Henry W. Bridges, who resigned in September, the bank said.Mr. Nelson, 35, is responsible for managing operations and developing business in Morehouse Parish, which includes ...
Seeing opening after a buyout, bank seeks correspondent role.(Liberty State Bank of St. Paul, MN)(Brief Article)
Jan 03, 1997; ... A Minnesota community bank is taking advantage of industry consolidation to enter a niche dominated by big institutions: correspondent banking.Perceiving demand by independent banks for a correspondent provider that wasn't also competitor, Liberty State Bank of St. Paul decided to ...
Md. Bankers Association decides to let thrifts become full members.(Maryland Bankers Association, savings and loan associations)(Brief Article)
Jan 03, 1997; ... No longer divided over deposit insurance issues, Maryland's banks have decided to let the state's thrifts become equal members of the Maryland Bankers Association.The thrifts' own trade group shut down June 30 for lack of money; the Annapolis-based bank group had abruptly canceled ...
Ohio's Mid Am buys subprime mortgage firm.(acquires Simplicity Mortgage Consultants Inc.)(Brief Article)
Jan 03, 1997; ... Mid Am Inc. of Bowling Green, Ohio, continued its quest for fee income with the acquisition of an Indiana mortgage company.Mid Am on Tuesday added Simplicity Mortgage Consultants Inc. to the host of financial services companies it owns, including five banks.Simplicity, ...
Bank of Boston losing U.S. asset management chief.(Susan P. Haney)
Jan 03, 1997; ... Susan P. Haney, one of the most prominent executives in the U.S. private banking business, is resigning from Bank of Boston Corp.Ms. Haney, 47, who currently holds the title of group executive for domestic asset management, informed her staff on Monday that she will leave the bank ...
Banc One appoints retirement-plan chief.(names John G. Alexander senior managing director-retirement services)(Brief Article)
Jan 03, 1997; ... Banc One Corp. last week named an executive to the newly created position of senior managing director of retirement services.John G. Alexander will manage the defined-contribution and defined-benefit businesses nationally for the Columbus, Ohio-based banking company. Investment ...
With munis in eclipse, Nuveen to push bank sales of stock funds. (John Nuveen and Company Inc. to emphasize marketing of stock funds rather than municipal bond funds to its bank clientele)
Jan 03, 1997; ... John Nuveen & Co., a mutual fund company best known for its tax-free bond offerings, is stepping up a fledgling effort to pitch stock portfolios to bank customers.Its first plan of attack: a marketing campaign starting in January that targets bank customers who have already ...
Franklin names head of bank sales in East. (Franklin Resources Inc. promotes Joseph L. Epstein, Jr. to financial institutions sales manager)(Brief Article)
Jan 03, 1997; ... Mutual fund company Franklin Resources Inc. has promoted Joseph L. Epstein Jr. to financial institutions sales manager overseeing sales through banks in the eastern half of the country.Franklin, which is based in San Mateo, Calif., said Mr. Epstein will also act as a key accounts ...
Perils of using statistics to show presence or absence of loan bias.(accusations of racial bias in mortgage underwriting)
Jan 03, 1997; ... Why Some Studies to Prove or Disprove Bias Are FlawedMy commentary here on Nov. 10 was quite critical of the attention given to racial disparities in mortgage rejection rates. My principal point was that those who focus on large racial disparities overlook the statistical tendency ...
First American buying a field inspection firm.(real estate services firm First American Financial Corp. to acquire Ward Associates)(Brief Article)
Jan 03, 1997; ... As mortgage lenders continue to consolidate, companies that provide services to them are following suit.The latest example is the merger of two field inspection companies -firms that mortgage servicers hire to keep an eye on homes after foreclosure and before resale. ...
Goldman Sachs bullish on home loan business.(issues buy recommendations on mortgage insurance companies)(Brief Article)
Jan 03, 1997 ... A leading investment house is touting mortgage insurance companies as hot stocks for 1997, an assessment that shows confidence in the mortgage industry as a whole.The home buying market will improve "throughout the 1990s," wrote Goldman Sachs & Co. analyst Robert G. Hottensen in a ...
Phone banking keeps rising, but satisfaction is so-so.(includes related article on the consumer survey)
Jan 03, 1997; ... In contrast to banking by personal computer, telephone-based services are widely used and growing steadily, and the industry is scrambling to meet the quality standards that consumers expect over the phone.The 1996 American Banker/Gallup consumer survey found that 54% of people ...
Echo's loss widened to $600K in fiscal '96.(Electronic Clearing House Inc.)(Brief Article)
Jan 03, 1997 ... Electronic Clearing House Inc., a point of sale systems and transaction processing company, reported a net loss for its fiscal year of $599,000 on $14.3 million of revenue.The loss amounted to 5 cents a share and was up from a loss of $176,000, or 2 cents, in the year that ended ...
Record holiday volume for National Data Corp.(Brief Article)
Jan 03, 1997 ... National Data Corp. said it set records for holiday-season transaction volumes.The Atlanta-based company's results are an indicator of credit and debit card activity. On Dec. 23 it handled 14.5 ...
Equifax selling its last health-care business.(sells Equifax Medical Credential Verification Services to MMI Companies Inc.)(Brief Article)
Jan 03, 1997 ... MMI Cos. agreed to buy Equifax Inc.'s remaining operation in the health-care information business, Equifax Medical Credential Verification Services.Over the past several months Equifax has sold or reached agreements to sell all its businesses related to health care ....
Daiichi Kangyo to issue Visa cards directly. (Dai-Ichi Kangyo Bank Ltd. of Japan)(Brief Article)
Jan 03, 1997 ... Daiichi Kangyo Bank has become the first bank in Japan to join Visa International as a card-issuing member, Visa said.Banks in Japan have issued Visa and other payment cards indirectly through their subsidiary credit card ...
National City Corp. agrees to ATM deal.(to install automated teller machines at Marc's Discount Stores units)(Brief Article)
Jan 03, 1997 ... National City Corp. signed an agreement to install and operate automated teller machines in 43 Marc's Discount Stores in Ohio and Connecticut.The machines, which will be part of the MAC network, will be installed in the ...
Via Visa, Idaho thrift getting into health insurance business.(Home Federal Savings Bank offers medical savings account-holders a Visa check card)(Brief Article)
Jan 03, 1997; ... Home Federal Savings Bank of Napa, Idaho, is entering the health insurance business through a new debit card alliance.The $200 million-asset thrift is offering a Visa check card to people who have medical savings account programs through their employers.The program is ...
High prices could make midsize sector tricky.(banks offering capital market services to mid-sized corporations face heightened competition)(Brief Article)
Jan 03, 1997; ... Just as banks are pouring resources into providing midsize companies with capital markets access, some experts are sounding cautionary notes.The rising stock market has pushed up the price of acquisitions, which could make some deals tricky to finance, these experts say. At the ...
A hot stock picker's advice for '97: think small; ex-Fidelity superregional whiz touting small-caps.
Jan 03, 1997; ... Superregional bank stocks may have ruled the market in 1996, but small-cap financial stocks will dominate this year.So says portfolio manager Remy W. Trafelet, who had a meteoric rise at Fidelity Investments by betting on the stocks of large banks.Three months ago, Mr ....
Banks post a stellar year on Wall St.; stocks up 36%.
Jan 03, 1997; ... It was a banner year for bank stocks in 1996, with shares at large and small ones outperforming a strong bull market.The American Banker bank index, which covers shares at 225 banks, rose 36% in 1996, compared to 21% for the S&P 500. Large banks and credit card specialty companies ...
'97 gets off to weak start as manufacturing index rekindles rate fears.(bank stocks suffer from fears of higher interest rates generated by negative economic statistics)(Brief Article)
Jan 03, 1997; ... Bank stocks continued to languish on Thursday as positive economic data refueled fears of higher interest rates.The National Association of Purchasing Managers reported that its index on manufacturing activity rose to 54 in December, from 52.7. The news sent the bond and stock ...
New Chairman and president assume their posts at Signet.(Signet Banking Corp. CEO Malcom S. McDonald assumes chairmanship; T. Gaylon Layfeld III named president)(Brief Article)
Jan 03, 1997; ... Signet Banking Corp. has announced that chief executive Malcolm S. McDonald assumed the additional post of chairman on Jan. 1, replacing Robert M. Freeman, who retired at yearend.The bank also named T. Gaylon Layfield 3d as president and chief operating officer.Both Mr ....
Bank of N.Y. planning to double its stake in State Street to 10%. (Bank of New York Company Inc., State Street Boston Corp.)(Brief Article)
Jan 03, 1997 ... Bank of New York Co. said Thursday it filed applications with the Federal Reserve Board and the Massachusetts state banking board to double its investment in State Street Boston Corp., to 9.9%.The New York bank acquired its current 4.99% in the third quarter of 1995, said Paul J ....
State Street's stock surges on talk of merger with Bank of New York.(State Street Boston Corp.)
Jan 06, 1997; ... Bank of New York Co.'s plan to increase its investment in State Street Boston Corp. sent the latter's stock price up 13% Friday as analysts contemplated a potential merger of two leaders in the securities processing businesses. The market looked beyond the official words of ...
Credit card profitability falls, in sign of rough '97.
Jan 06, 1997; ... The profitability of credit cards fell in 1996 for the second year in a row, but they remain one of banking's most attractive lines of business. R.K. Hammer Investment Bankers, in its annual card industry survey, pegged the business' 1996 return on average assets at 3.3%. ...
Commercial banks making strides in junk bonds.(bond issuance in 1996)
Jan 06, 1997; ... Commercial banks continued to eat into investment banks' share of the junk-bond pie last year. Seven commercial banks ranked among the top 20 issuers of junk deals, up from five in 1995, according to preliminary yearend data from Securities Data Co. These banks had a combined ...