American Banker back issues from March 2002:
Mixed Tidings from FDIC: Surge in problem banks called worrisome.(United States. Federal Deposit Insurance Corp.)(Brief Article)(Statistical Data Included)
Mar 01, 2002; ... The number of problem banks rose 28%, to 95, in the fourth quarter, the largest increase in over a decade, the Federal Deposit Insurance Corp. said Thursday. That means a lot more banks are poised to fail and to draw down an already vulnerable Bank Insurance Fund. The assets of ...
Fannie Eyes Half of Subprime Market.(Federal National Mortgage Association)
Mar 01, 2002; ... Fannie Mae believes it can make as many as half of today's subprime borrowers its own, and it is actively enlisting conventional lenders to help it reach this goal, its vice chairwoman said. "It is gradual but it is relentless," Jamie S. Gorelick said. "There are a lot of people ...
DC Speaks: Activists Find New Target -- Credit Unions.(lack of services for low-income)(Brief Article)
Mar 01, 2002; ... Credit unions are getting some criticism from an unfamiliar quarter -- consumer activists, who usually bash banks. Malcolm Bush, the president of the Woodstock Institute in Chicago and community advocates elsewhere generally give high marks to credit unions for charging low ...
TODAY'S NEWS.
Mar 01, 2002 ... A legal loophole could keep Bank of New York from being able to use Kmart deposits to offset the retailer's debt. Page 2 WASHINGTON A poll showing that many Americans believe lenders are racially biased will be used by community reinvestment advocates. Page 3 ...
In Focus: Why Schwab Wants Another Charter to Add Bank Services.(Charles Schwab and Company Inc.)(Brief Article)
Mar 01, 2002; ... Charles Schwab & Co.'s plan to apply for a national bank charter within the next month raises several questions about the San Francisco company's plans to broaden its financial services offerings. The obvious question is what Schwab is hoping to achieve once it has the charter ....
Loophole Could Decide Bank of N.Y. v. Kmart.(banks file suit for assets in Kmart bankruptcy)(Brief Article)
Mar 01, 2002; ... In going to court last week for approval to use $2.5 million in deposits from Kmart Corp., Bank of New York Co. did what any bank would do when it is owed money by a bankrupt company. In fact several other banking companies, including Wells Fargo & Co. in San Francisco and ...
People.(Brief Article)
Mar 01, 2002 ... Say It with Money Things are going so well at Bank One Corp. that chairman and chief executive officer Jamie Dimon got a big cash bonus for his 2001 performance. Exactly how big will be revealed in the next few days when the Chicago company files its proxy materials ...
Poll: 35% Think Lenders Discriminate.(National Community Reinvestment Coalition)(Brief Article)(Statistical Data Included)
Mar 01, 2002; ... The National Community Reinvestment Coalition hopes a poll showing that many Americans believe lenders are racially biased or engage in predatory practices will reinvigorate movement on Capitol Hill for tougher laws. Thirty-five percent of 1,258 people interviewed nationally in ...
After Allfirst, CEO Oversight Urged.(Foreign Exchange Committee, Guidelines for Foreign Exchange Activity)
Mar 01, 2002; ... In the wake of the currency trading debacle that cost Allfirst Bank in Baltimore $691 million, top industry officials are asking chief executives to get more involved in the monitoring of foreign trading operations. The Foreign Exchange Committee, a bankers-only panel sponsored ...
BCSB of Baltimore Buying Rival Heritage.(BCSB Bankcorp Inc., Heritage Savings Bank)(Brief Article)
Mar 01, 2002; ... BCSB Bankcorp Inc. announced Thursday that it had agreed to buy longtime competitor Heritage Savings Bank in Lutherville, Md., for $18 million in cash. BCSB is the $411 million-asset parent of Baltimore County Savings Bank, which was founded in 1955. Heritage, a subsidiary of ...
Fed EchoesvIts Call for Disclosure.(United States. Federal Reserve Board)(Brief Article)
Mar 01, 2002; ... For the second time in two days, a top Federal Reserve Board official called for increased disclosure of financial services firms' risk exposures. Speaking Thursday at a conference in Switzerland, Fed Governor Susan S. Bies said that the reports generated by institutions' ...
Hibernia Recruits Bank-Insurance Exec for Its Agency.(Steven Terry)(Brief Article)
Mar 01, 2002; ... Hibernia Corp. of New Orleans has tapped a bank-insurance veteran from Fifth Third Bancorp to succeed Leslie Rosenthal Jacobs, the longtime head of the insurance agency it bought in July 2000. Steven Terry, 51, is to join Hibernia Rosenthal Insurance today as president. At ...
Fund Sales' '02 Surge Seen Shaking Off Down Trend.(Investment Company Institute data)(Brief Article)(Statistical Data Included)
Mar 01, 2002; ... An unexpected uptick in mutual fund sales in the year's first two months has prompted many fund companies and brokers to think that the products may finally be pulling out of their more than year-long slump. Sales of mutual funds in January surpassed the diminished expectations ...
Will Casino-Tested Software Be a Good Bet for Bank Use?(Infonox, Global Cash Access)(Brief Article)
Mar 01, 2002; ... As Infonox, which sells payment processing software mostly to casinos, begins marketing to banks, the question is whether it has something unique to offer -- and whether a bank should put its chips on a small, young vendor. Infonox, which was founded in 1998 in Santa Clara, ...
Fleet Given Slim Chance of Getting Card Issue Reheard.(FleetBoston Financial Corp., Rossman v. Fleet)(Brief Article)
Mar 01, 2002; ... In spite of the unanimous decision by a three-judge appellate panel that it had acted unfairly in imposing an annual fee on a consumer's credit card, FleetBoston Financial Corp. continues to press its case -- confounding some predictions that it would finally throw in the towel. ...
InfoSpace Buys eCash Technologies.(Brief Article)
Mar 01, 2002; ... eCash Technologies Inc., which began as an Internet innovator with a sophisticated encryption-based cash system, has been purchased by InfoSpace Inc. Before the sale, eCash, of Bothell, Wash., was a reincarnation of the Dutch company Digicash Inc., which was founded by the ...
Letters to the Editor.(Brief Article)
Mar 01, 2002 ... Case for New Fees On State Banks Misses Point ... To the Editor: In its Feb. 15 letter to the editor ("Supervisory-Fee Disparity a Threat to Dual Banking," page 8), the Support Group for Modern National Banking misses the mark on the debate over supervisory exam fees ...
Technology Risk Management Can't Be Compartmentalized.(Brief Article)
Mar 01, 2002; ... Risk management is fundamental to banking and a familiar practice to all experienced bankers. But it generally takes the form of compartmentalized processes. For example, credit risk management concentrates on the loan portfolio and origination process; investment risk management on the ...
Looming 23-Basis-Point Cliff In FDIC Premium Is a Myth.(United States. Federal Deposit Insurance Corp.)(Brief Article)(Statistical Data Included)
Mar 01, 2002; ... Myths are a powerful political force inside the Washington Beltway, particularly on banking issues. One myth driving the deposit insurance "reform" legislation that Congress is now considering: Premiums charged by a deposit insurance fund will skyrocket, to an average of 23 basis points, ...
In Brief: Applications Rise; Refis Drop Below 50%.(mortgage, loan refinancing)(Brief Article)(Statistical Data Included)
Mar 01, 2002 ... Mortgage applications increased 3.9% last week, but refinancing activity fell below 50% for only the second time this year according to the Mortgage Bankers Association's latest index, released Wednesday. The purchase index increased 8.7%, to 315.5, from the week before; the ...
In Brief: Moody's Lauds Fannie's Risk Management.(Moody's Investors Service, Federal National Mortgage Association)(Brief Article)
Mar 01, 2002 ... Moody's Investors Service has awarded Fannie Mae an A-minus for "bank financial strength," noting its "critically important role" in housing finance. The ratings agency said Wednesday that the grade was based on Fannie's stable earnings performance and its "comprehensive and ...
In Brief: Rates Flat for Week, Freddie Mac Says.(Brief Article)(Statistical Data Included)
Mar 01, 2002 ... Mortgage rates remained almost unchanged this week, with the average 30-year fixed-rate loan slipping 1 basis point, to 6.80%, according to Freddie Mac's weekly survey. A year ago the rate averaged 7.03%. The 15-year fixed-rate mortgage remained at last ...
In Brief: GE Unit 'Evaluating' Deals with GSEs.(GE Mortgage Insurance Corp; government sponsored enterprises)(Brief Article)
Mar 01, 2002 ... GE Mortgage Insurance expressed dissatisfaction Thursday with a rule Fannie Mae and Freddie Mac's regulator issued last week and said that in response it is "seriously evaluating" how it does business with them. The final capital rule reduced from the level proposed last July ...
Vendor: U.K. Check Venture May Be Model for U.S. Banks.(Brief Article)
Mar 01, 2002; ... Now that a 15-month-old venture among three top United Kingdom banks processes 67% of checks in the U.K., experts say U.S. banks may consider changing their own handling of check processing. Check processing has historically been seen as a sacrosanct element of a bank's ...
Royal Bank Profit Up 18% Despite Higher Reserves.(Royal Bank of Scotland Group PLC)(Brief Article)(Statistical Data Included)
Mar 01, 2002; ... Royal Bank of Scotland Group PLC, the parent of Providence, R.I.-based Citizens Financial Group Inc., had profit growth of 18% in the second half of 2001 despite higher bad-loan provisions. Chief executive Fred Goodwin told analysts Thursday that he would like to add to the ...
Talk Is Sober at Tech-Investing Meeting.(Brief Article)
Mar 01, 2002; ... Amid steady speculation over the timing of a market and economic rebound, many companies that rode the market to its highest crest -- and got soaked in its plunge - are playing it safe. People attending the annual Robertson Stephens technology conference here this week mention ...
In Brief: LaFalce Bill for Auditor, Analyst Oversight.(John LaFalce)(Brief Article)
Mar 01, 2002; ... Senior House Democrats on Thursday introduced a sweeping bill aimed at restoring investor confidence in accounting and investment banking by replacing industry self-regulation with statutes. The bill -- which Rep. John LaFalce of New York, the ranking Democrat on the House ...
In Brief: Ruling Put Off in Morgan Chase Insurer Suit.(Brief Article)
Mar 01, 2002; ... J.P. Morgan Chase & Co. will have to wait until the end of next week, or longer, for a decision by a federal judge on its motion for summary judgment against 11 insurers who are refusing to pay $1 billion of claims related to Enron Corp. Judge Jed S. Rakoff of the U.S. District ...
In Brief: Credit Cards Fueled Target's Profit Growth.(Brief Article)(Statistical Data Included)
Mar 01, 2002 ... Target Corp. said Thursday that growth in its credit card lending operation had been a major contributor to its earnings-per-share growth of 12.4% last year, to $1.56, before charges for unusual items. Including the unusual items, the retailer's net profit grew 8.3%, to $1.37 ...
In Brief: Banknorth Plans Up to 10 More Bank Deals.(Banknorth Group Inc.)(Brief Article)
Mar 01, 2002; ... A day after announcing the deal for a community bank on Massachusetts' North Shore, Banknorth Group Inc. said on Thursday that it would buy as many as 10 more banks between now and 2005. William J. Ryan, Banknorth's chairman, said his $21 billion-asset company would focus on ...
In Brief: P.R. Bank Seeks to Buy Chase Operations.(Puerto Rico; J.P. Morgan Chase and Co.)(Brief Article)
Mar 01, 2002 ... FirstBank Puerto Rico, the second-largest commercial bank on the island and a subsidiary of First BanCorp of Puerto Rico, has signed a letter of intent to buy the business operations of J.P. Morgan Chase & Co. in the Virgin Islands, British Virgin Islands, and ...
Top U.S. Individual Life, Accident, and Health Insurance Companies: By net admitted assets as of Sept. 30, 2001; dollars in thousands.(Prudential Insurance Company of America tops list)(Illustration)(Statistical Data Included)
Mar 01, 2002 ... (Part 1 of 2) Rank <Pre> 1 Prudential Insurance Co. of America Newark, N.J. 2 Metropolitan Life Insurance Co. Tampa 3 Teachers Insurance and Annuity Assn. of America New York 4 Northwestern Mutual Life Insurance Milwaukee 5 Equitable Life Assurance Society ...
4Q Dip in BIFRatio Is Biggest in 10 Years.(Bank Insurance Fund)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... The Federal Deposit Insurance Corp. decided Friday against charging all banks premiums for the first time in six years, but its message was clear: The day of reckoning is nearly at hand. The agency announced that the Bank Insurance Fund's ratio of federal reserves to insured ...
In Focus: Big Endorsements for Terrorism Insurance Bill, But Its Fate Remains Iffy.(Brief Article)
Mar 04, 2002; ... Proponents of establishing a federal terrorism insurance program scored big points last week with the endorsement of Federal Reserve Board Chairman Alan Greenspan and a highly supportive report from the General Accounting Office. But few are willing to predict that they will ...
TODAY'S NEWS.
Mar 04, 2002 ... Home price growth in the fourth quarter fell to its lowest point in more than six years, but economists say the housing industry will stay strong. Page 4 Bank of America is reorganizing three California units to cut costs. Page 4 WASHINGTON Page 5 ...
Banknorth's 3-Year Plan: 10 Deals, Mainly in Mass.(Banknorth Group Inc. planning to acquire banks, raise financial assets)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... Banknorth Group Inc. outlined a plan last month to raise as much as $1 billion over the next two years, and last week chairman William J. Ryan revealed what the Portland, Maine, company intends to do with much of that money: buy more banks. At an investor conference in San ...
Fleet Takes a Step on Retail: Boosting teller ranks 6% to retain customers.(FleetBoston Financial Corp. planning to spend money on more bank tellers, management forecasts)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... FleetBoston Financial Corp., which has struggled to shore up profits in several noncore business lines, sent a signal on Friday that it's serious about getting back to the basics of banking. The company said it plans to spend $14 million to add nearly 500 tellers to its ...
B of A Revamping 3 Units in Calif.(Bank of America Corp., San Francisco, California offices)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... Bank of America Corp. is reorganizing three California units as part of its continuing efforts to cut costs. The overhaul will affect nearly 200 jobs: Some will be relocated, and at least 49 will be eliminated. The Charlotte, N.C., company plans to shift 100 jobs in ...
Freddie, OFHEO Data Show Plunge in Home Price Growth.(Office of Federal Housing Enterprise Oversight)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... The housing market exhibited its first signs of weakness last week, as data showed that new home sales plummeted in January and that the growth in home values slowed dramatically in the fourth quarter. Two indexes, both released Friday, reported that home price appreciation ...
Executive Changes.(at various banks)(Brief Article)
Mar 04, 2002; ... MIDWEST KeyCorp in Cleveland has hired Poppie Parish as the vice president in charge of corporate minority and women's business enterprise development banking. She reports to Bruce Murphy, the president of community development banking. Ms. Parish was the ...
Washington People.(Al Franken appears at National Community Reinvestment Coalition meeting)(Brief Article)
Mar 04, 2002 ... Franken on Banking Al Franken came to a Washington luncheon on Thursday as a guest of the National Community Reinvestment Coalition and left the crowd in stitches. Acknowledging that many Hollywood-types fly into town to promote causes they don't know much about, the ...
Ga.'s Flag Sued Over Rejected Bid.(FLAG Financial Corp. shareholders suing board for rejection of Charter Financial Corp. offer)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... Shareholders of the $562 million-asset Flag Financial Corp. are suing its board over the decision to reject a recent acquisition offer. In a complaint filed last Tuesday in the Troup County Superior Court, the shareholders contend that the board should have accepted an $18 ...
Lincoln to School Investors After '01 Variables Lag.(Lincoln National Corp.)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... When Stephen Long took over the sales division for the bank channel at Lincoln National Corp. last year, he said the Philadelphia company would push for a big presence in the variable annuity market. That didn't happen. In 2001 Lincoln sold only $55 million of ...
Store ATMs Can Do Well If They Do More.(automatic teller machines can offer more services to increase usage)(Statistical Data Included)(Brief Article)
Mar 04, 2002; ... Today, the U.S. off-premises automated teller machine market is a mature one. Independent sales organization deployers are moving up-market to displace financial institutions at large retail sites. Does this mean off-premise ATM deployment is no longer viable for financial institutions? ...
Bank One Is Taken Out of the Hunt for NextCard.(Bank One is handling sale of NextCard portfolio)(Statistical Data Included)
Mar 04, 2002; ... By handling the sale of the NextCard portfolio, Bank One Corp. has taken itself out of the running as a buyer, according to the Federal Deposit Insurance Corp., which is handling the disposition of the distressed card lender. When the Office of the Comptroller of the Currency ...
Preferred Issues: Today's Refi Dividend Could Be Burden Later.(refinancings are payoff funds)(Statistical Data Included)(Brief Article)
Mar 04, 2002; ... A booming mortgage business gave some banks and thrifts a reason to crow about fourth-quarter results. At thrift companies such as Washington Mutual Inc. and Golden State Bancorp., and at Wells Fargo & Co., Bank of America Corp., National City Corp., and other banks that own big ...
Comment: Countrywide: We Benefit From Increased Disclosure.(Statistical Data Included)(Brief Article)
Mar 04, 2002; ... From Wall Street to Capitol Hill, the nation's attention has become focused on mysterious and controversial accounting practices that may cloud investors' views of a corporation's true financial position. Suddenly, "derivative" and "hedging" have become dirty words and the shadow of a ...
In Brief: Small-Biz Software By Yodlee, OneCore.(Yodlee Inc. contracts with OneCore)(Brief Article)
Mar 04, 2002 ... The account aggregation services provider Yodlee Inc. has teamed up with OneCore, a Bedford, Mass., software firm, to launch a customizable service that helps small businesses handle aggregated data, the companies announced Friday. The product lets users download online ...
In Brief: NTT DoCoMo Gets Listing on Big Board.(New York Stock Exchange listing)(Brief Article)(Statistical Data Included)
Mar 04, 2002 ... NTT DoCoMo was listed on the New York Stock Exchange on Friday. Shares of DoCoMo opened at $53.50 and closed at $53.86. The Japanese mobile phone service provider said the New York listing, which followed a listing on the London Stock Exchange earlier that day, would ...
In Brief: Retail Decisions Buys Paymentplus.(Brief Article)(Statistical Data Included)
Mar 04, 2002 ... Retail Decisions, a supplier of payment card fraud prevention and transaction services, announced Friday that it has acquired the processing software provider Paymentplus Inc. for $2.25 million. Paymentplus, of Reston, Va., offers credit card and electronic check authorization ...
Carreker Lifted by Small-Bank, Foreign Projects.(Carreker Corp. expects to announce profits for 2001)(Statistical Data Included)(Brief Article)
Mar 04, 2002; ... Carreker Corp., which counts Jan. 31 as the last day of its fiscal year, says that when it announces its yearend and fourth-quarter earnings March 12 it will have some profits to boast about. Carreker, which sells payment processing software, lost money in two out of the last ...
In Brief: OCC Shuts Net First of Fla.; Fifth Bank Failure in '02.(Office of the Comptroller of the Currency orders Net First of Florida closed)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... In the fifth bank failure this year, federal regulators Friday shut $34 million-asset Net First National Bank of Boca Raton, Florida. Though it is only March, the number of bank failures this year has already surpassed last year's total of four. The Comptroller of the ...
In Brief: Wells Files Plan to Sell $10B of Debt, Securities.(files S-3 shelf registration with Securities and Exchange Commission, 10 billion dollars)(Brief Article)
Mar 04, 2002; ... Wells Fargo & Co. filed a S-3 shelf registration with the Securities and Exchange Commission late Thursday to possibly sell, individually or in units, up to $10 billion of debt, securities, purchase contracts and securities warrants. "Each time we or a trust sell securities, we ...
In Brief: Wamu Purchases $2.1B Of HomeSide Assets.(Washington Mutual Inc. acquires Homeside Lending assets of around 2.1 billion dollars)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... Washington Mutual Inc. said Friday that it has completed its acquisition of the operating assets of HomeSide Lending, Inc., the Jacksonville, Fla., mortgage unit of National Australia Bank Ltd. Wamu acquired approximately $2.1 billion of HomeSide assets, including approximately ...
In Brief: Study: Nonbank ATMs No Longer Turning Profit.(automatic teller machine service information)(Brief Article)
Mar 04, 2002; ... The advent of surcharging at automated teller machines initially created a revenue bubble in the retail nonbank market, but a study by Dove Consulting Inc., released Friday and sponsored by the nation's top four electronic funds transfer networks, says that bubble has burst. The ...
In Brief: FBOP of Ill. Purchasing Black-Owned L.A. Thrift.(FBOP Inc. acquires Family Savings Bank F.S.B.)(Brief Article)(Statistical Data Included)
Mar 04, 2002; ... Continuing its California buying spree, FBOP Inc. announced Friday that it would buy Family Savings Bank, a $196 million-asset black-owned thrift in Los Angeles, for an undisclosed sum. Family Savings would become a subsidiary of the $10 billion-asset FBOP. Its name and ...
Bonuses to Separate Winners, Losers of '01.(banks that did well in 2001 should give executives good bonuses)(Statistical Data Included)(Brief Article)
Mar 04, 2002; ... It is proxy season again and time to see what the nation's banking companies are paying their top executives. According to Lori Appelbaum, an analyst with Goldman Sachs Group Inc., executives from companies that delivered earnings tainted by credit woes and other losses should ...
Oxley Ready To Negotiate On Terror Bill.(Michael G. Oxley, terrorism insurance)(Brief Article)
Mar 05, 2002; ... Legislation to establish a federal terrorism insurance program got a big boost Monday when a key House lawmaker agreed to compromise. "We are ready to work out our differences with the Senate, the insurance industry, and the (Bush) administration," House Financial Services ...
Scraping Phobia Yields To Business-Case Merits.(success of account aggregation)
Mar 05, 2002; ... Two years ago, when major Internet portals began offering account aggregation, bankers started wondering whether this technology was a "must-have" and weighed qualms over screen-scraping against the customer loyalty they believed they would gain. Today, worries about ...
Don't Blame Cards for This One: Net First failure laid to SBA loans, infighting.(Brief Article)
Mar 05, 2002; ... Take a name that evokes the Web, add a card business catering to high-risk clients, and it is hardly surprising, given the current environment, that the Office of the Comptroller of the Currency would come knocking. But the demise of tiny Net First National Bank of Boca Raton, ...
Mortgage-Business Data Stump Forecasters.(Brief Article)(Statistical Data Included)
Mar 05, 2002; ... Home sales are up. No, wait, they're down. Fewer mortgages are delinquent, but more loans are in foreclosure. What's going on? After a record year in which the housing and mortgage markets could do no wrong, early 2002 produced a slew of contradictory data. ...
Tweaking FDIC Reform To Win Over Big Banks.(Federal Deposit Insurance Corp.)(Brief Article)
Mar 05, 2002; ... To drum up support for deposit insurance reform, a key House lawmaker is floating a plan to make the legislation more attractive to large banks. The bill is scheduled for its first vote Thursday in the House Financial Services financial institutions subcommittee, and its ...
TODAY'S NEWS.(Brief Article)
Mar 05, 2002 ... FleetBoston has launched a bundled account for small-business customers in an effort to increase profits from its retail banking division. Page 3 WASHINGTON The OCC plans to loosen the capital reserve requirements for the U.S. branches of well-run foreign banks. Page ...
Deutsche Bank Loses 13 To CIBC Consumer Group.(CIBC World Markets hires bankers from Deutsche Bank)(Brief Article)
Mar 05, 2002; ... CIBC World Markets Corp., the U.S. investment banking arm of Canadian Imperial Bank of Commerce, hired 13 bankers away from a rival Deutsche Bank unit last week, and in doing so nearly doubled its consumer and business services group. Mark Goodman, who had been head of consumer ...
Fleet Bundles Small-Business Accounts.(FleetBoston Financial Corp.)(Brief Article)
Mar 05, 2002; ... As part of a recent push to increase revenues and wring more profits from its retail division, FleetBoston Financial Corp. on Monday launched a bundled account for small-business customers. The Boston company said its small-business "value package" offers many basic ...