American Banker back issues from August 1997:
Visa to raise interchange rate 5%-6% next spring. (Visa U.S.A. increasing fee for bank credit card transactions in 1998)
Aug 01, 1997; ... For the first time since 1991, Visa U.S.A. is substantially raising a fee that heavily influences the overall economics of the bank card business.Effective next April, Visa said, it will raise its interchange rates by an average of 5% to 6%.The interchange fee, a small ...
Dissidents are elected to lead Sallie as private direct-to-student lender. (Student Loan Marketing Association to compete against banks)
Aug 01, 1997; ... Sallie Mae shareholders voted Thursday to turn the company over to a group of dissidents who want to compete with banks by lending directly to students.Stockholders voted 25.5 million shares to 18.5 million in favor of a directors' slate put forth by Albert L. Lord and his ...
Lender lets homebuyer raise cash on initial loan. (Master Financial Inc. offers loans worth 125% of home's purchase value)
Aug 01, 1997; ... Need cash fast? Buy a house!An Orange, Calif., subprime lender is sending that message to consumers, offering a mortgage of up to 125% of a home's value at purchase. All they need is a Fair, Isaac Co. credit score of 650-an A-minus -10% of the home's value stashed in a liquid asset ...
U.S. would profit paying interest on reserves at Fed, ABA says. (Federal Reserve, American Bankers Association)
Aug 01, 1997; ... Seeking to build congressional support, the American Bankers Association on Thursday released a study showing that interest paid on required reserves would increase government revenues by $500 million over the next five years."In the past, the belief that the impact on the budget ...
Survey: fees jump at big banks, drop at small ones. (U.S. Public Interest Research Group report)(Brief Article)
Aug 01, 1997; ... Fees are climbing at big banks while dropping at small ones, according to a national survey released Thursday.The average consumer pays nearly $28 more for checking accounts at big banks, the U.S. Public Interest Research Group concluded after looking at 419 banks in 29 states and ...
Citi expanding self-service with 24-hour branches. (Citibank plans minimally staffed locations in Harlem and Bronx in New York, New York)
Aug 01, 1997; ... Citibank is moving deeper into the world of self-service.Officials at the Citicorp subsidiary said it is planning 24-hour branches, which would be unmanned outside of business hours, for two New York City locations.The facilities are similar to ones Citibank opened in San ...
Webster of Connecticut wins approval for in-state deal. (Webster Financial Corp. acquires People's Savings Financial Corp. for approximately $84 million)(Brief Article)
Aug 01, 1997 ... Webster Financial Corp. said it has received approval from the Office of Thrift Supervision to acquire People's Savings Financial Corp.People's shareholders, who approved the proposed acquisition July 30, will receive 0.85 shares of Webster common stock for each People's share. ...
Mercantile ad blitz touts St. Louis ties, asset size, and personal approach. (Mercantile Bancorp launches advertisements in Illinois, Kansas, Missouri)
Aug 01, 1997; ... Bigger is better, according to Mercantile Bancorp, and the St. Louis company is flaunting its new girth in a series of television, radio, and newspaper advertisements around the Midwest.Mercantile grew from $19 billion of assets at yearend to $30 billion with the recent ...
PNC Bank hires Ausura as consumer banking CFO. (John F. Ausura becomes group's chief financial officer)(Brief Article)
Aug 01, 1997 ... PNC Bank, Pittsburgh, a unit of PNC Bank Corp., has hired John F. Ausura as chief financial officer in the consumer banking group.Mr. Ausura was vice president and CFO at Sunshine Biscuits in Woodbridge, N.J., and earlier was a finance officer at Campbell Soup Co.Ronald ...
N.D. bank writes off $1M, sues former loan officer. (North Dakota's Bnccorp Inc. cites purportedly fraudulent loans)
Aug 01, 1997; ... A North Dakota bank holding company wrote off almost $1 million last quarter to cover allegedly fraudulent loans to a now bankrupt company.Now Bnccorp, Bismarck, a $323 million-asset banking company, is suing the former executive it says extended $1.5 million of loans to the ...
Shareholder advisory firm backs dissidents in proxy fight over a New Jersey thrift. (Institutional Shareholder Services recommends vote against IBS Financial Corp. management)(Brief Article)
Aug 01, 1997 ... An advisory firm hired by institutional investors is telling shareholders of an embattled New Jersey thrift company to vote against its management.Institutional Shareholder Services, Bethesda, Md., confirmed this week that it had advised its clients and shareholders generally to ...
Citizens Bancshares of Ohio to buy rival. (UniBank)(Brief Article)
Aug 01, 1997 ... Citizens Bancshares, a $1 billion-asset holding company, has agreed to buy a local rival, UniBank, a 12-branch company in nearby Steubenville, for an undisclosed sum.Citizens has promised the $240 million-asset bank a tax-free stock swap that is subject to regulatory and ...
Zions unveils deal for Colo.'s Sky Valley. (Zions Bancorp. to pay $20.3 million in stock for Sky Valley Bank Corp.)(Brief Article)
Aug 01, 1997 ... Zions Bancorp. has agreed to buy a Colorado-based bank holding company, Sky Valley Bank Corp., for $20.3 million of stock.Zions' announcement that it's buying Sky Valley came a week after the $8 billion-asset Utah company completed the acquisition of 27 Wells Fargo branches-with ...
Pa. company widens foothold in Florida. (Pennsylvania's F.N.B. Corp. to pay approximately $14 million for Mercantile Bank of Southwest Florida)(Brief Article)
Aug 01, 1997 ... A Pennsylvania bank is making yet another move into the Florida banking scene.F.N.B. Corp. this week agreed to buy Naples-based Mercantile Bank of Southwest Florida in a cash deal worth about $14 million-about 1.58 times Mercantile's book value.It's the fourth Florida ...
Oregon bank firm to buy out neighbor. (VRB Bancorp. to pay $17.5 million for Colonial Banking Co.)(Brief Article)
Aug 01, 1997 ... A community bank company in southern Oregon has found a willing-if rare-local acquisition candidate.VRB Bancorp, parent of Valley of the Rogue Bank, has agreed to buy Colonial Banking Co., Grants Pass, Ore., for $17.5 million in cash. The deal is expected to close Jan. 1. ...
Stopping short of subprime, CMAC Investment to begin insuring A-minus loans.
Aug 01, 1997; ... CMAC Investment Corp., a mortgage insurer, said it will insure loans to people with less than stellar credit histories.The company told analysts recently that it would start insuring A-minus loans. Although insurers have written coverage for pools of loans that include some A-minus ...
New home sales surge 6.1% to near-record pace.
Aug 01, 1997; ... Sales of new single-family homes rose 6.1% from May to a near-record June level, which suggests that housing will help speed growth in the second half.New home sales rose to a seasonally adjusted annual rate of 819,000, in line with analysts' expectations. That followed a 1% rise ...
PaineWebber sees industry shift to individual.(Donald B. Marron of PaineWebber Group Inc.)(Interview)
Aug 01, 1997; ... As Donald B. Marron sees it, the financial services industry has entered "the age of the individual."The chairman and chief executive officer of PaineWebber Group Inc., the nation's fourth-largest securities firm, sees huge opportunity for the industry in managing the burgeoning ...
Three on-line data services vie for business.(Loan Pricing Corp., Portfolio Management Data LLC, Securities Data Company Inc.)
Aug 01, 1997; ... In syndicated lending, where competitors can win or lose multibillion- dollar deals on a fraction of a percentage point, market knowledge is key.With the market maturing, the increasing speed of doing business is done is putting an ever-higher premium on up-to-date market ...
BT to help air cargo company launch $100 in junk debt.(Bankers Trust New York Corp., Atlas Air Inc. of Golden, Colorado)
Aug 01, 1997; ... Bankers Trust New York Corp.'s securities unit is in transit with a $100 million high-yield debt offering for a leading air cargo company.AtlasAir in Golden, Colo., uses an all-Boeing fleet to provide cargo transportation services to major commercial air carriers.The ...
Bankers Trust leads $1B loan for packager.(Silgan Holdings Inc.)(Brief Article)
Aug 01, 1997; ... Bankers Trust led a $1 billion senior secured credit facility for Silgan Holdings Inc. this week.The deal-including $250 million in A-term loans, $200 million in B-term loans and a six-year, $550 million revolving loan facility-was oversubscribed by roughly 50%, according to ...
N.Y. developer funds giant project in Boston.(Millennium Partners)(Brief Article)
Aug 01, 1997; ... Millennium Partners, a New York-based developer, is funding downtown Boston's largest commercial real estate project since 1984.The 1.4 million-square-foot facility is the first fruit of a recent $300 million equity infusion by Goldman Sachs & Co., investor George Soros, and a ...
Banc One clips wings of convenience users; cardholders face major air-mile penalties for paying Visa balances in full.
Aug 01, 1997; ... Banc One Corp. is making sweeping changes to its TravelPlus Visa card, slashing mileage rewards for cardholders who pay their balances in full each month.In a move across the board, the Columbus, Ohio-based credit card issuer will award only one-third of an air-mile point for each ...
Providian Financial 2Q earnings up 23%.(second quarter of 1997)(Brief Article)
Aug 01, 1997 ... Providian Financial Corp. said it earned $45.7 million in the second quarter, 23% more than a year earlier. Earnings per share rose 8 cents, to 48 cents.The 1996 data were pro forma. The company has since been spun off from Louisville, Ky.-based Providian Corp.The card ...
As EBT nears, Mo. pushes poor to open bank accounts.(electronic benefit transfer in Missouri)
Aug 01, 1997; ... Using electronic benefits transfer as bait, Missouri hopes to lure welfare recipients into opening bank accounts.The state aims to get at least 50% of its 70,000 beneficiaries to receive payments by direct deposit.Missouri's bank recruitment effort-perhaps the most ...
Leaping over post-merger conversion hurdles.(Column)
Aug 01, 1997; ... Slashed overhead expenses and the elimination of duplicative functions are mergers' economic rewards. These gains may be wiped out, however, if bank investment managers do not move swiftly and aggressively to merge trust and investment processing services.The faster you move, the ...
People need costly hand-holding to use home banking, experts say.
Aug 01, 1997; ... As electronic delivery methods grow more popular, bankers and technology companies are grappling with how to provide more effective and efficient customer support.Participants in an Interactive Services Association conference this week in Washington said the issue is critical ...
Travelers Express tests payment terminals.(bill-payment terminals)(Brief Article)
Aug 01, 1997 ... Travelers Express Co., the nation's second-largest electronic bill payment processor, has begun testing a service that brings on-line bill paying to consumers who do not have computers. The service, called FlashPay, lets consumers initiate bill payments at participating retail stores or ...
First Chicago hires firm to process forms.(First Chicago NBD Corp., Reynolds and Reynolds Co.)(Brief Article)
Aug 01, 1997 ... First Chicago NBD Corp. has agreed to outsource its forms processing and management operations to Reynolds & Reynolds Co. of Dayton, Ohio.Under terms of the five-year, $30 million deal, Reynolds will provide the bank with a variety of ...
Thrift's shareholders back Connecticut deal.(People's Savings Financial Corp., Webster Financial Corp.)(Brief Article)
Aug 01, 1997 ... People's Savings Financial Corp. shareholders have approved a merger with Webster Financial Corp. In a press release, Webster said the agreement gives People's shareholders 0.85 of ...
Novastar joins trend among REITs, unveils proposal to go public.(Novastar Financial Inc., real estate investment trusts)
Aug 01, 1997; ... Novastar Financial Inc. this week became the latest mortgage real estate investment trust to file for an initial public offering.The Westwood, Kan., unit said it plans to sell three million shares of common stock at $16 to $18 each, with Stifel Nicolaus & Co. leading the deal. ...
Money Store downgraded because of car-loan losses.
Aug 01, 1997; ... Shares of Money Store Inc. were downgraded Thursday because rising losses and delinquencies in the company's auto-lending business.Smith Barney Inc. analyst William H. Ryan cut Money Store to "neutral" from "outperform.' The company reported last week that in the second quarter, ...
Early Summer Short-Selling Up 6% on Buybacks, Mergers. (bank stocks)
Aug 04, 1997; ... Short-selling of bank stocks has accelerated on Wall Street, apparently in tandem with banks' share repurchase programs and increased merger activity.As bank stocks reach ever-loftier heights, some traders may be hedging against a decline by taking short positions.But ...
Some See Consumer Buying on the Ebb.
Aug 04, 1997; ... Whither the consumer.While consumer spending has downshifted in recent months, most economists anticipate a rebound soon on the strength of the robust job market and high confidence levels registered by the surveys closely watched on Wall Street.But a few observers are ...
Card Chargeoffs Fall for 2nd Month in Row. (credit card chargeoffs)(Fitch Investors Service statistics)
Aug 04, 1997; ... Confounding analysts' expectations, credit card chargeoffs declined in July for the second consecutive month.According to Fitch Investors Service's index of securitized credit cards, chargeoffs dropped to 6.71%, off from 6.81% in June and down from a peak of 6.95% in May. ...
Union Planters Nears Deal for Capital Bancorp.(Brief Article)
Aug 04, 1997; ... Union Planters Corp., Memphis, seemed to be closing in Friday on a deal for Capital Bancorp, sources said.Lawyers from the firm of Alston & Bird were finalizing arrangements for Union Planters to buy the controversial Miami banking company, these sources said. A deal could be ...
Low Interest Rates Spurred July Issuance of Bank Bonds.
Aug 04, 1997; ... Corporate bond issuance by banks in July was unusually strong as interest rates fell to levels last seen in early 1995.Bank debt issuance during the summer months typically slackens, often dropping dramatically during July after the vigorous issuance period that occurs just before ...
Group Hopes to Find the Pure Ore in Banks' Data. (Action Systems Inc.)(includes related article on Canadian banks' customer information systems)
Aug 04, 1997; ... A consulting firm has organized a consortium of technology companies, Hewlett-Packard Co. most prominent among them, to try to ease bankers' frustrations with customer information systems.Action Systems Inc., a firm that has thrived by improving major financial institutions' retail ...
Outlook on California Housing Market Goes from Glut to Potential Shortage.
Aug 04, 1997; ... Housing markets in California have made a stunning about face: Lenders there now may face a housing shortage instead of the glut of a few years ago.In a recent paper entitled, "Thinking the Unthinkable: Housing Shortage on the Way?" the California Association of Realtors warns ...
FASB Rebuffs Business Elite Urging Delay Of Risk Rule. (Financial Accounting Standards Board proposal on derivatives accounting)
Aug 04, 1997; ... Despite mounting pressure from banks and other corporations, the Financial Accounting Standards Board is unlikely to retreat from a controversial derivatives proposal.Senior executives from 22 major companies wrote to the rulemaking body last week urging it to slow down the new ...
Float Won't Pay for Costs of Servicing EBT Accounts, Treasury Says. (electronic benefits transfer; Treasury Dept. study)
Aug 04, 1997; ... Banks are expected to make less than 19 cents a month from the float on accounts held by federal benefits recipients, according to a Treasury Department study.That's far short of the $6 to $10 per account per month banks need to recoup their costs, said Marcia Z. Sullivan, ...
Commerce Chairman Pledges Modernization Bill Will Pass in House.(Commerce Committee chairman Thomas J. Bliley Jr.; financial industry modernization)
Aug 04, 1997; ... House Commerce Committee Chairman Thomas J. Bliley Jr. isn't afraid to boast.Despite many failed attempts by other lawmakers, the nine-term Virginia Republican has vowed that his panel will approve a financial modernization plan in September that will make it through the House of ...
Kansas bankers Hail Leach Despite Opposing His Bill. (Rep. Jim Leach guest at Kansas Bankers Assn. dinner; financial modernization bill)
Aug 04, 1997 ... Rep. Jim Leach was a surprise guest at the Kansas Bankers Association's annual Washington dinner last week.Room was hastily cleared for the House Banking Committee chairman, and after the tiramisu with chocolate and vanilla bean coulis had been consumed, former Rep. Dick Nichols ...
Suit Over Merger Deal Cites Sparse Details of Rival Offer. (Astoria Financial Corp. purchase of Greater New York Savings Bank)
Aug 04, 1997; ... Two shareholders of the Greater New York Savings Bank are trying to toss a wrench into the $2.5 billion-asset thrift's agreement to be bought by Astoria Financial Corp.Leonard Minzer and Harry Schipper, the shareholders, filed a lawsuit in federal district court in Brooklyn two ...
NationsBanc Names Executive. (NationsBanc Services names Jeffrey A. Babka CFO)(Brief Article)
Aug 04, 1997 ... NationsBanc Services Inc., a unit of NationsBank Corp., has hired Jeffrey A. Babka as senior vice president and chief financial officer.Mr. Babka, based in Atlanta, is responsible for the financial management of the bank's technology and systems operations group.He ...
Mercantile, Still Digesting Mo. Mergers, Plans to Buy Arkansas' Horizon Bancorp. (Mercantile Bancorp.)(Brief Article)
Aug 04, 1997; ... Mercantile Bancorp., in the midst of integrating two major mergers, said it would buy a $551 million-asset bank in central Arkansas.The $120 million stock acquisition of Horizon Bancorp of Arkadelphia, Ark., would boost Mercantile's asset size to $1.8 billion in the state and would ...
Lehman Brothers Entering Mortgage Servicing Business. (purchasing servicing from Harbourton Mortgage and establishing new servicing unit, Aurora LLP)(Brief Article)
Aug 04, 1997; ... A new giant may have entered the mortgage servicing business. Lehman Brothers Holdings Inc., the New York investment bank, was expected Friday to announce the purchase of about $1.3 billion in servicing from Harbourton Mortgage Co.Lehman is expected to set up a mortgage servicing ...
Data Mining a Key to Fast-Growing Immigrant Market. (excerpts from talk by Stewart Title Co.'s Ted Jones at National Housing Roundtable forum)(Transcript)
Aug 04, 1997 ... Data-based marketing could be especially important as immigrants' presence in the housing market grows, according to Ted Jones, chief economist at Stewart Title Co., Houston.Following are excerpts from his recent talk at a National Housing Roundtable forum in San Francisco: ...
Family Controlling Miami Bank May Be Eying Sale. (Holtz family; Capital Bancorp)
Aug 04, 1997; ... The controversial owners of Miami's Capital Bancorp may be selling out before they're forced to get out.The $1.7 billion-asset company last week revealed that it was in "discussions with several parties concerning a possible merger transaction."Capital's majority owners, ...
Calif.'s Aggressive Western Bancorp Racks Up Another Buyout Deal. (purchase of Santa Monica Bank)
Aug 04, 1997; ... Southern California's Western Bancorp announced its fourth acquisition deal since February 1996, positioning itself to become the eighth-largest bank based in the state.The Laguna Niguel-based company would pay $198.6 million in cash and stock for $672 million-asset Santa Monica ...
Fund Takes Calif. Bank Stake, Eyes Multibank Holdings. (Belvedere Capital Partners investing in Security First Bank)
Aug 04, 1997; ... A San Francisco-based investment partnership is taking its first ownership stake in a California community bank.Belvedere Capital Partners, headed by two former regional bank executives, has committed itself to invest up to $5.5 million in Fullerton-based Security First Bank ...
Entrepreneurs Bring Savvy to the Bank. (entrepreneurs with much business experience are demanding more from banks)
Aug 04, 1997; ... Alan R. Waters, chief financial officer of a California computer company, is frustrated with bankers.Mr. Waters, a former economist at the U.S. Agency for International Development, said he didn't have much luck finding the financing from traditional banks that his small company ...
Md. Bank Tries Lending Based On Receivables. (Mason-Dixon Bancshares offers Bethesda office that offers accounts receivable financing to small businesses)
Aug 04, 1997; ... A Maryland community bank holding company has opened a commercial finance company in suburban Washington to target government contractors and other small businesses.Mason-Dixon Bancshares opened an office in Bethesda to offer accounts receivable financing, a service that businesses ...
AT&T Capital Focuses on Lending to Franchises: Powerful Finance Company Provides Term Loans and Equipment Leases.
Aug 04, 1997; ... AT&T Capital Corp., a major force in the small-business lending market, has turned the spotlight on a fast-growing niche: franchising.Entrepreneurs who start a Dunkin' Donuts or Baskin Robbins store have many of the same financial needs as those getting into any new business, the ...
NationsBank Gets Go-Ahead for New Fixed-Income Firm. (Boatmen's Capital Management receives SEC registration)(Brief Article)
Aug 04, 1997; ... NationsBank Corp. last week said its Boatmen's Capital Management Inc. had received registration from the Securities and Exchange Commission. Boatmen's Capital, a fixed-income manager dedicated to institutional investors, takes it name from Boatmen's Bancshares, the St. Louis-based banking ...
Federated, Branching Out, Now Managing Accounts For Union Planters Clients. (Federated Investors)
Aug 04, 1997; ... Federated Investors, long known for its sale of mutual funds through banks, has entered into an alliance with one Tennessee bank to manage individual accounts.Recently, the Pittsburgh-based fund company started managing equity investments for customers of Union Planters Corp., a ...
Wachovia Renames Funds With Bank's Own Moniker. (Wachovia Funds new name for Biltmore Funds)
Aug 04, 1997; ... Wachovia Corp. has lent its name to its mutual fund family.The Winston Salem, N.C.-based banking company has renamed the Biltmore Funds as the Wachovia Funds. The move is part of a strategy to position Wachovia as a total financial services provider, said R. Edward Bowling, senior ...
First Virtual Sells Internet Payment Software to ESPN. (ESPN Internet Ventures to use VirtualPin software)
Aug 04, 1997; ... First Virtual Holdings Inc. has sold its VirtualPin software for Internet payments to ESPN Internet Ventures, which produces one of the World Wide Web's most popular sites, ESPN SportsZone.ESPN has committed to buying up to 100,000 copies of VirtualPin. It plans to use the software ...
ATM Maker on a Three-Month Tear. (Diebold Inc.)(bank technology stocks)
Aug 04, 1997; ... In the mercurial world of bank technology stocks, shares of Diebold Inc. have been red-hot lately.The North Canton, Ohio-based automated teller machine manufacturer's stock price has risen 56% in the last three months.Analysts said no single business line is fueling the ...
Investment Banks Rise in Ranks Of Lenders to LBO Companies. (leveraged buyout)
Aug 04, 1997; ... Though commercial banks still dominate the top ranks of lenders to the leveraged buyout community, investment banks are gaining ground.Chase Manhattan Corp., Bankers Trust New York Corp., and Citicorp were the leading lenders to firms controlled by LBO shops in the first half of ...
New Chief for Natwest's Investment Banking Unit. (Konrad Kruger to head Natwest Markets)(Brief Article)
Aug 04, 1997 ... London's National Westminster Bank on Friday named Konrad "Chip" Kruger chief executive of Natwest Markets, its investment banking arm.Mr. Kruger is the former co-head of Greenwich Capital Holdings Inc., a Connecticut investment bank Natwest ...
Oppenheimer to Triple Bank Loan Holdings. (Oppenheimer Funds)(Brief Article)
Aug 04, 1997 ... Oppenheimer Funds Inc. said it plans to triple its bank loan portfolio over the next three or four months.The New York-based fund company, which has $100 million invested in leveraged loans, hopes to increase that investment to $300 million or more, said Arthur Zimmer, an ...
Collections Must Adapt to Changes in Lending. (loan collection)(Column)
Aug 04, 1997; ... Consumer lenders have traditionally regarded collections and loan recovery as something of an afterthought. And in less competitive times, a wait-and-see approach to industry changes was an acceptable business practice.But emerging trends today require a much more proactive ...
Wachovia Card Unit Upgrades Mainframe Processing. (Wachovia Bank Card Services)
Aug 04, 1997; ... Wachovia Bank Card Services has completed a 15-month conversion of its in-house credit card processing system.The conversion, which was finished July 28, upgraded the card unit's mainframe computing system, giving workers easier ways to view and manage customer transactions. ...
CoreStates President Bowing Out; Analysts Point to Merger Difficulties.
Aug 05, 1997; ... Rosemarie B. Greco, president of CoreStates Financial Corp., said Monday that she will leave the company in early 1998.One of the highest-ranking women in banking, Ms. Greco, 51, rose to the Philadelphia company's No. 2 post in June 1996. She succeeded Samuel McCullough, former ...