American Banker back issues from April 1997:
Ahmanson cites investor support; Great Western calls claim 'silly.'(H.F. Ahmanson and Co. attempt to acquire Great Western Financial Corp.)
Apr 01, 1997; ... In an effort to regain its footing in the battle for Great Western Financial Corp., H.F. Ahmanson & Co. said Monday it has indications of early shareholder support.Ahmanson, in advertisements in major newspapers Monday, said that 80% of the shareholders that have responded to date ...
Taiwanese banks step up the pace of capital infusion in California.
Apr 01, 1997; ... Taiwanese banks, having slowly developed a California presence in recent years, are suddenly picking up the pace.FCB Taiwan California Bank is slated to open its doors in the Southern California town of Alhambra on May 20. The state-chartered bank, the first such venture by a ...
Astoria buying Greater N.Y. Savings for $293 million.(Astoria Financial Corp.; Greater New York Savings Bank)
Apr 01, 1997; ... Moving to expand its presence among the burgeoning immigrant communities of New York City, Astoria Financial Corp. said Monday it would acquire Greater New York Savings Bank for $293 million.The deal, which was praised by Wall Street analysts, would for the first time put Astoria ...
Leach: I've slowed rush to bank-commerce mix.(House Banking Committee Chairman Jim Leach)(Interview)
Apr 01, 1997; ... House Banking Committee Chairman Jim Leach is frustrated. Too few people, he says, understand the impact he is having on efforts to overhaul the country's financial laws.In an interview Friday, the Iowa Republican said his consistent objection to banks' merging with nonfinancial ...
OTS asking thrifts to suggest rules for electronic banking.(Office of Thrift Supervision; savings and loan associations)(Brief Article)
Apr 01, 1997; ... The Office of Thrift Supervision, uncertain how to regulate electronic banking, is turning to the industry for guidance.The agency Monday became the first regulator to solicit comments officially on a broad array of electronic banking issues. A notice is to be published Wednesday ...
IBAA rebuffs American Express in its fight with Visa, MasterCard.(Independent Bankers Association of America; Visa U.S.A. Inc., MasterCard International Inc.)(Brief Article)
Apr 01, 1997; ... The Independent Bankers Association of America has rejected an overture by American Express Co. for support of an antitrust probe of Visa U.S.A. and MasterCard International.Writing in a March 28 letter, IBAA executive vice president Kenneth A. Guenther said American Express' ...
FDIC orders Lippo Group's bank to shape up.(Federal Deposit Insurance Corp. issues cease and desist order against Lippo Bank, P.T.)(Brief Article)
Apr 01, 1997; ... A cease and desist order from the Federal Deposit Insurance Corp. is requiring Lippo Bank to slash problem assets, boost capital, and scrutinize management.The Los Angeles-based bank is owned by James Riady, an Indonesian businessman whose family controls the Lippo Group, a ...
Justice Department expected to increase attack on loan bias.
Apr 01, 1997; ... The Justice Department's attack on lending bias is expected to accelerate despite the departure of the civil rights division's top officials.High on the agenda: brokerage fees, pricing discrimination, and redlining."The fair-lending enforcement program will continue ...
883 First Union offices to adopt controversial fingerprinting program.
Apr 01, 1997; ... After testing the waters in three southeastern states, First Union Corp. said it would roll out a controversial customer fingerprinting program in 883 branches up and down the East Coast.Starting April 7, the Charlotte, N.C.-based company will require people without accounts to be ...
Compliance, controller, personnel base pay surging.(KPA Group survey of banking industry salary distributions)
Apr 01, 1997; ... Base salaries for executives in the front lines of retail and commercial banking-in branch management, credit, and lending -have stagnated in the past two years, according to a survey by an executive recruiting firm. But raises for compliance specialists, controllers, and human resources ...
Banc One weighing charge in 2Q for branch overhaul.(second quarter earnings)(Brief Article)
Apr 01, 1997; ... Banc One Corp. said it may take an undetermined charge to second- quarter earnings in order to cover further restructuring of its branch system.The charge would come in addition to a $150 million charge expected in the same quarter for the acquisition of First USA Inc. ...
The risks in cashing strangers' on-us checks outweigh any benefits.(cashing checks on accounts at other banks)(Column)
Apr 01, 1997; ... We had more response to our latest contest than on anything before!The question: When should we cash a check issued on an account at another bank?The issue: Chase Manhattan refused to cash an on-us check brought in by a stranger, while Columbia Federal Savings Bank even ...
UBS Securities revving up mortgage securities effort.
Apr 01, 1997; ... Mortgage securities are a key part of a move by Union Bank of Switzerland to raise its profile in the United States.The company's investment bank, UBS Securities, is leading the effort to become one of Wall Street's premier underwriters and traders of securities backed by mortgage ...
EDS in talks on buying Wendover, State Street's subservicing unit.(Electronic Data Systems Corp.; Wendover Funding Inc.)(Brief Article)
Apr 01, 1997; ... Electronic Data Systems is seriously looking at making a major entry into the mortgage subservicing market by purchasing one of the sector's largest companies, Wendover Funding Inc., sources said.Wendover has been the subject of persistent acquisition rumors in the last few months ....
Wall St. Balks at MBA plan to add more-volatile loans to stable Ginnie Mae pool. (Mortgage Bankers Association of America; Government National Mortgage Association)(Brief Article)
Apr 01, 1997; ... A proposal by some in the mortgage industry to change the way certain Ginnie Mae securities are structured-as a way of possibly bringing down loan rates-appears to have lost key Wall Street support.Fearing potentially negative impacts to the securities market, the PSA Bond Market ...
Calif. lender approved for HUD reverse loans. (Financial Freedom Senior Funding Corp.; Dept. of Housing & Urban Development; reverse mortgages)(Brief Article)
Apr 01, 1997 ... Financial Freedom Senior Funding Corp. said it has been approved as a lender for the Department of Housing and Urban Development's reverse mortgage, the home equity conversion mortgage."Our FHA approval comes at a great time for scores of senior homeowners in Los Angeles, San ...
Advanta prices $550M of securitized mortgages. (Advanta Mortgage Conduit Services Inc.)(Brief Article)
Apr 01, 1997 ... Advanta Corp. announced last week that its wholly owned subsidiary, Advanta Mortgage Conduit Services Inc., had priced a $550 million loan securitization. Closing on the deal was expected Monday."The record size of this home equity transaction is reflective of the strong ...
Smith Barney fund drops tobacco, weapon stocks. (Concert Social Awareness Fund)
Apr 01, 1997; ... Smith Barney Inc. has become the first national brokerage firm to offer a "socially responsible" mutual fund that gives the cold shoulder to manufacturers of weapons and cigarettes, among other products.The firm said its Concert Social Awareness Fund avoids investing in companies ...
State Street Finance guides, formerly freebies, now on sale in bookstores. (State Street Boston Corp.'s subsidiary, State Street Global Advisors Inc.)(Brief Article)
Apr 01, 1997; ... Long an established brand with institutional investors, State Street Boston Corp. wants to raise its profile with the general public.The bank's investment arm, State Street Global Advisors, developed the ideas behind a series of "Your Money Matters" booklets, and Time-Life Books ...
Study indicates banks' third-party sales have yet to take off. (marketing of insurance products; survey by Kenneth Kehrer)
Apr 01, 1997; ... In an early glimpse at how banks are faring in life insurance, a recent study indicates that sales through third-party marketing companies were less than robust in 1996.Third-party marketing companies supply banks with investment representatives to sell financial products. They ...
Marketing One chief adds insurer CEO job. (Chairman and Chief Executive Officer Paul Patsis becomes president and ceo, United Insurance Cos. Inc.)(Brief Article)
Apr 01, 1997; ... Paul Patsis, chairman and chief executive of Marketing One Inc., has been tapped by his parent company to lead an annuity underwriter.He was named president and chief executive of United Insurance Cos., Baton Rouge, La., a $1 billion-asset company founded in 1955. United Cos. and ...
MBNA card to offer discounts on RCA products.
Apr 01, 1997; ... MBNA Corp. is extending its reach from affinity and sports programs into the realm of home entertainment.The No. 2 bank credit card issuer announced an agreement last week to issue a cobranded MasterCard for Thomson Consumer Electronics, owner of the RCA brand. The card offers ...
National Data buys POS servicing firm. (Merchant Services USA, point-of-sale customer services)(Brief Article)
Apr 01, 1997; ... National Data Corp. and its Global Payment Systems subsidiary have acquired Merchant Services USA, a Winston-Salem, N.C., company that provides customer service for point of sale equipment manufacturers, transaction processors, and health-care electronic data interchange companies 24 hours a ...
Breaking ranks, Credit Lyonnais to issue a cobranded Amex card. (American Express Co.)(Brief Article)
Apr 01, 1997; ... American Express Co. inked a deal with Credit Lyonnais to issue a corporate card.The companies had been rumored in February to be in negotiations.Credit Lyonnais will be the first American Express banking partner to offer a cobranded corporate card outside the United ...
First Data said to be in talks to buy MAC. (Electronic Payment Services Inc., owner of MAC network)(Brief Article)
Apr 01, 1997; ... Rumor has it that First Data Corp. is negotiating to buy Electronic Payment Services Inc., the owner of the MAC network.The news was reported last Friday in CardFax, a Faulkner & Gray publication.Electronic Payment Services' performance has disappointed owners CoreStates ...
Discover to issue card for Universal Studios. (Dean Witter, Discover & Co.)(Brief Article)
Apr 01, 1997; ... Dean Witter, Discover & Co. and Universal Studios on Monday announced a corporate partnership, which includes a sponsorship program and a cobranded card to be issued later in the year.The card will be issued through Dean Witter, Discover's Novus Services and will offer ...
Major League Baseball inks MBNA card deal.(Brief Article)
Apr 01, 1997 ... As expected, MBNA Corp. has signed an exclusive agreement with Major League Baseball, making the bank the official credit card issuer of the big leagues.The no-fee card carries a rate of 5.9% for six months, which then jumps to prime plus 9.9%, now 18.4%. Season ticket holders and ...
U.S. allowing export of more-secure data encryption systems. (Trusted Information Systems receives export approval)(Brief Article)
Apr 01, 1997 ... Trusted Information Systems has managed to extend the limit on data encryption systems eligible for export.Even as the United States and other governments struggle to set common policies on international use of information security technology, the Glenwood, Md., firm has won ...
IBM markets software and service to help banks build data warehouses.
Apr 01, 1997; ... International Business Machines Corp. is offering a streamlined way for banks and other financial companies to develop data warehouses.Bankers used to have two alternatives when building applications: start from scratch or buy an off-the-shelf product. IBM wants its offering, ...
A five-step program for reinventing your bank.(Comment)(Column)
Apr 01, 1997; ... The banking industry is in the throes of structural changes that call for each bank to reinvent itself in terms of strategy focus, organizational form, product offerings, and delivery systems.Yet many senior managers shy away from making the major changes that are critical for ...
Bank stocks continue to falter amid fears of further rate hikes.(bank industry stock prices for March 31, 1997; interest rates)
Apr 01, 1997; ... Bank stocks continued to slide in value on Monday as investors exited the sector, fearing that last week's increase in interest rates will not be the last one.Despite Monday's fairly soft economic statistics, bank stocks during morning trading endured one of their worst selling ...
Mercury sells life insurance unit for $92M.(Mercury Finance Co. sells Lyndon Insurance Group to Frontier Insurance Group Inc.)(Brief Article)
Apr 01, 1997; ... Mercury Finance Co. sold its life insurance subsidiary last week for less than its book value.The beleaguered Lake Forest, Ill., subprime auto finance company said Friday that it would sell Lyndon Insurance Group to Frontier Insurance Group Inc., Rock Hill, N.Y., for $92 million. ...
Used-car supermarket setting up loan unit.(Auto Nation Inc. forms Auto Nation Finance Co.)(Brief Article)
Apr 01, 1997; ... Auto Nation Inc., the used-car supermarket owned by Wayne Huizenga's Republic Industries, is launching a captive finance company.Republic formed Auto Nation Finance Co. "a couple weeks ago" and has begun assembling a staff, Michael Karsner, chief financial officer of the Fort ...
In some states, banks and agents are cooperating on insurance laws.
Apr 02, 1997; ... Despite predictions of bruising battles, bankers and insurance agents are working together in many states to enact laws governing bank insurance sales.The West Virginia and Arkansas legislatures passed bills last week to allow insurance sales by banks operating within their ...
NationsBank files to enter real estate development.
Apr 02, 1997; ... Taking advantage of a controversial new rule, NationsBank has asked the Office of the Comptroller of the Currency for permission to enter the real estate development business.The lead bank of Charlotte, N.C.-based NationsBank Corp. also proposed financing real estate leasing. The ...
Bank stock splits caught in market downdraft.
Apr 02, 1997; ... As banks helped lead the market's winter rally, a flock of them announced stock splits in a bid to keep their share prices within arm's reach of retail investors.BankAmerica Corp. and NationsBank Corp., which have long had major retail ownership of their shares, were among the 19 ...
GAO: data adequate to regulate interstate banks.(General Accounting Office)(Brief Article)
Apr 02, 1997 ... Regulators will have enough information to supervise banks that branch across state lines, even though the banks will file fewer call reports, according to a General Accounting Office report.Currently, holding companies must operate separate banks in different states. Each ...
Fed wants Congress to make mortgage laws mesh.(Federal Reserve Board, Truth-in-Lending and Real Estate Settlement Procedures acts)(Brief Article)
Apr 02, 1997 ... The Federal Reserve Board is preparing to ask Congress to harmonize the Truth-in-Lending and the Real Estate Settlement Procedures acts.In a March 31 notice, the Fed said it has concluded that it cannot streamline the two mortgage disclosure laws without congressional intervention ....
Royal of Canada gets go-ahead for Texas office.(Royal Bank of Canada Houston, Texas, office)(Brief Article)
Apr 02, 1997 ... The Fed has given Royal Bank of Canada, Montreal, permission to open a representative office in Houston.The office will market products and solicit loans for the parent bank.It cannot accept deposits or make loans directly, the Fed said in its March 31 order. ...
Fed clarifies disclosures for consumer leasing.(payment disclosure)(Brief Article)
Apr 02, 1997; ... The Fed revised its staff commentary on consumer leasing to clarify what must be included in the periodic payment disclosure.The Fed said in the March 31 commentary that only payments made in regular intervals that are derived from capitalized and amortized amounts are covered by ...
Check couriers hire big gun to fight Fed.(Association of Bank Couriers; Vorys, Sater, Seymour, and Pease)(includes related information)
Apr 02, 1997; ... Private air carriers have hired a big-name lobbying firm to convince lawmakers that the Federal Reserve unfairly subsidizes the aircraft fleet it uses to ferry checks around the country. The Association of Bank Couriers, a trade group of companies that compete with the Fed in transporting ...
McCoy: Banc One going national to survive.(Banc One Corp. Chairman John B. McCoy)
Apr 02, 1997; ... Banc One Corp. chairman John B. McCoy says his national ambitions are not just about empire-building. He views coast-to coast capability as a key to survival in a rapidly consolidating industry.Although Banc One already spans a dozen states from Ohio to Arizona, it still falls ...
Court blocks HUD ban on reverse-loan advisers.(US District Court for District of Columbia on Department of Housing and Urban Development's policy not to insure reversed mortgages obtained from estate planning services)
Apr 02, 1997; ... A federal judge has barred the Department of Housing and Urban Development from enforcing a blanket policy of refusing to insure reverse mortgages obtained with help from estate planning services.The temporary restraining order was issued last Thursday.HUD had announced ...
Will Fed hike hurt? It might even help.(impact of Federal Reserve Board's change in interest rates on the mortgage market)(Brief Article)
Apr 02, 1997; ... The Federal Reserve's raising of interest rates last week has so far proved to be a nonevent in the mortgage market. At Freddie Mac, deputy chief economist Frank Nothaft said he was reducing his forecast for loan originations this year by less than 5%. At Fannie Mae, Eileen Neely, manager of ...
Chase's net up, Fleet's down despite revenue gain.(Chase Manhattan Mortgage Corp. and Fleet Mortgage Group reported financial results for 1996)(Brief Article)
Apr 02, 1997; ... The mortgage banking subsidiaries of two of the nation's largest commercial banks posted wildly different results in 1996.Net income nearly doubled for Chase Manhattan Corp.'s mortgage unit to $110 million while profits for Fleet Mortgage Group fell from $86 million in 1995 to $69 ...
Some Midwest banks going a long way for customers.
Apr 02, 1997; ... A handful of midwestern bank executives are stretching the definition of community banking-sometimes by thousands of miles.The sometimes-desperate hunt for loans or deposits has driven some small-town bankers to form or buy institutions in noncontiguous states hundreds and even ...
Wells invests $100K in Ore. community development bank.(Wells Fargo & Co.'s investment in Albina Community Bank, Portland, OR)(Brief Article)
Apr 02, 1997 ... Wells Fargo & Co. marked its 145th anniversary last month by investing $100,000 in Albina Community Bank, a year-old community development bank serving north and northeast Portland.The investment, which fulfilled part of Wells' 10-year, $45 billion community reinvestment ...
Some wise old saws about running a bank belong on scrap heap.(bank management)(Super Community Banking)
Apr 02, 1997; ... Traditional "truths" about what makes management effective warrant further examination."Hierarchical structure is the only way to manage risk."Wrong. Banks have traditionally structured their organizations like a pyramid. Many recognize that this is not an effective way ...
NationsBank syndication expert jumps to Merrill.(NationsBank Corp. managing director Michael Zupon to join Merrill Lynch & Co.)
Apr 02, 1997; ... Yet another loan syndications expert is changing jobs.Michael Zupon, a managing director at NationsBank Corp., is set to join Merrill Lynch & Co.'s growing loan shop next week.A three-year veteran of NationsBank, Mr. Zupon is known primarily for his ties to big buyout ...
SunTrust snags more high-grade bond talent from NationsBank.(SunTrust Capital Markets Inc.)(Brief Article)
Apr 02, 1997; ... When it comes to high-grade bonds, NationsBank's loss is SunTrust's gain.The Atlanta-based bank has picked up several bond salespeople from NationsBanc Capital Markets Inc., which is believed to be de-emphasizing the investment-grade fixed-income business. SunTrust plans to staff ...
Customer service gives nonbanks an edge over banks in the battle for wealthy clients.
Apr 02, 1997; ... An old woman shuffles alone into your bank. She's barely five feet tall. It's the middle of summer, but she's wearing a cheap black winter coat and hat. In fact, by the looks of it she has worn the same hat and coat for years. She grips a worn folder filled with papers. Without smiling, she ...
Fed to break precedent if it lets Commerzbank buy retail fund group.(Federal Reserve Board, Montgomery Asset Management)
Apr 02, 1997; ... Commerzbank AG's agreement last week to acquire Montgomery Asset Management would be the first acquisition of a U.S. retail mutual fund complex by a foreign bank if the Fed approves it.The deal is scheduled to close by July 31, but the Fed has never before given the green light to ...
Cheaper encryption tool gaining momentum.(Certicom Corp.'s elliptic curve cryptosystem is considered an efficient way to increase security of financial electronic transactions)
Apr 02, 1997; ... Certicom Corp., the Canadian data encryption company, held a coming-out party last week here in the heart of Silicon Valley.The debutante-the ostensible reason for a presentation to the high-tech press and analyst community-was Security Builder, a tool kit for the data security ...
BT Ventures' chief champions career flexibility.(BT Ventures' founder John Herron Jr.)
Apr 02, 1997; ... When he was a teenager, John Herron Jr. and a friend founded a company for people who didn't want to get stuck doing just one thing.The company operated a newspaper, a farm, and a steamship line, with the idea that employees could try out different careers by jumping between ...
Subprime auto firm's debt downgraded.(Aegis Auto Finance Inc. of Jersey City, New Jersey)(Brief Article)
Apr 02, 1997; ... Subprime auto finance got another smack in the face last week when Moody's Investors Service reduced its rating on a key portion of asset backed securities designed to stimulate investor interest in the sector.Moody's downgraded $5.65 million worth of securities from the ...
Morgan tool gauges risk across a bank's entire portfolio.(CreditMetrics from J.P. Morgan and Company Inc.)(Brief Article)
Apr 02, 1997; ... J.P. Morgan & Co. is unveiling today a new system designed to help banks measure credit risk in their portfolios.Parts of the program, which is called CreditMetrics, will be available free on the Internet. The rest will cost $25,000 to run."My feeling is this will be ...
Sen. D'Amato renews effort to ban ATM surcharges. (Senate Banking Committee Chairman Alfonse D'Amato targets banks' automated teller machines)
Apr 03, 1997; ... Senate Banking Committee Chairman Alfonse M. D'Amato renewed his commitment Wednesday to banning ATM surcharges.The charges are "wrong, unconscionable, and they must be stopped," the New York Republican said at a press conference called to trumpet a report showing nearly half of ...
KeyCorp seen eyeing subprime firms Option One Mortgage and Champion. (Champion Mortgage Holdings Corp. among possible mortgage bank acquisitions)(includes related article on evaluating subprime lenders for purchase)
Apr 03, 1997; ... KeyCorp, which largely abandoned the mortgage business two years ago as prof- its lagged, is seeking to jump in again in a big way-this time as a lender to people with tarnished credit records.The Cleveland-based banking company has targeted as acquisition candidates Option One ...
Little PMT thrives among merchant-acquiring giants. (PMT Services Inc. expands by processing credit card transactions for small businesses)(Company Profile)
Apr 03, 1997; ... Chief executive officer Richardson M. Roberts remembers a time 10 years ago when PMT Services Inc.'s telemarketing operation had to shut down because a rainstorm had shorted out the phone lines."Not only was I competing for business in a marketplace which was difficult to identify ...
Fed: consumer rules shouldn't be imposed on stored-value cards. (Federal Reserve Board)(Brief Article)
Apr 03, 1997; ... Even partial application of consumer protection rules to stored-value cards could impede development of this new payment system, according to a Federal Reserve Board report.The study, sent to Congress late Monday, recommends using policy statements and public education campaigns to ...
Indiana governor expected to sign a bill allowing state banks to sell life insurance. (Frank O'Bannon)(Brief Article)
Apr 03, 1997; ... Legislation allowing Indiana-chartered banks to sell life insurance is expected to be signed soon by Gov. Frank O'Bannon.The measure, unanimously approved by the Indiana Senate Monday, would require Hoosier State banks to sell insurance in a part of the lobby physically separate ...
Utah to end freeze on charters for industrial loan companies.
Apr 03, 1997; ... Even as Washington policymakers bicker over plans to let nonfinancial firms own banks, Utah officials have made it easier for nearly any company to offer banking services.Gov. Mike Leavitt signed a law March 12 ending a 10-year freeze on the issuance of industrial loan company ...
Great Western execs sold stock on eve of bid from Ahmanson.(Brief Article)
Apr 03, 1997; ... Several of Great Western Financial Corp.'s directors and senior executives sold significant blocks of stock in the company just weeks-in some cases just one business day-before H.F. Ahmanson & Co. made its hostile offer.According to public filings compiled by CDA/Investnet, James ...
After merger, NBD chief's bonus doubled while First Chicago vice chairman's fell.(Brief Article)
Apr 03, 1997; ... The head of First Chicago NBD Corp.'s corporate bank received a smaller bonus last year than in 1995, but the chief executive's doubled.According to the company's recently issued proxy, chief executive Verne G. Istock got a $1 million bonus for meeting financial and nonfinancial ...
Southern National seeks new card base to escape N.C. laws.
Apr 03, 1997; ... Southern National Corp. is looking for a new home for its credit card opera- tions.The North Carolina bank holding company said it wants to move the $400 million business out of its home state. It has hired a consulting firm to evaluate its options, and has narrowed the list to ...