American Banker back issues from April 2003:
Powell Uses Pay-Scale Fix To Ensure Accountability.(Federal Deposit Insurance Corp. chairman Don Powell)
Apr 01, 2003; ... The Federal Deposit Insurance Corp. has told nearly 50% of its top-tier staff members they will no longer be considered "executives." It is part of a major reform designed to help ensure the upper ranks are in sync with Chairman Don Powell. An FDIC spokesman said ...
From Home Run to a Shallow Fly: The Street's Split on FleetBoston.(analyst ratings of FleetBoston Financial Corp.)
Apr 01, 2003; ... Wall Street analysts are divided on FleetBoston Financial Corp.'s efforts to reinvent itself. A leading voice in the pro-Fleet camp, Anthony Polini of FTN Financial Securities Corp., said that "when this economic environment can finally throw a pitch over the plate," Fleet "can ...
Tremors in Lending's Top Echelon.(competition among lenders for market share)
Apr 01, 2003; ... The horse race among the top U.S. syndicated lenders drew tighter during the first quarter as a dearth of deals forced competitors to share. Expectations of a war with Iraq weighed on the market for most of the quarter. Loan proceeds sank 27.3%, to $167 billion, and the number ...
Wachovia Buyback Tactic Back To Haunt it?(profits data; share repurchase investigation)
Apr 01, 2003; ... Wachovia Corp. mixed good news with bad on Monday, saying it will post better-than-expected first-quarter profits but also disclosing that regulators are investigating share repurchases in the months before the Wachovia-First Union merger. The nation's fifth-largest banking ...
In Brief: Vote Soon on Deposit Insurance.(Brief Article)
Apr 01, 2003; ... The House is scheduled to vote as early as Wednesday on bills that would overhaul the deposit insurance system and permit banks to pay interest on corporate checking accounts. The House Rules Committee is scheduled today to decide which amendments lawmakers will be allowed to ...
In Brief: Rating Agency, HUD Hearings Set.(Department of Housing and Urban Development mortgage regulation reform)(Brief Article)
Apr 01, 2003; ... Congressional hearings are set for this week on credit rating agencies and next week on the Department of Housing and Urban Development's proposed reform of mortgage regulations. The House Financial Services capital markets subcommittee is scheduled Wednesday to scrutinize the ...
In Brief: Fed Clarifies Regulation Z.(Truth-in-Lending and Home Ownership, Equity Protection act implementation)(Brief Article)
Apr 01, 2003; ... The Federal Reserve Board has issued a rule to clarify parts of its Regulation Z, which implements the Truth-in-Lending and Home Ownership and Equity Protection acts. The rule, issued Friday, revises the staff commentary on Reg Z to address several concerns expressed by the ...
Net Shrinks at Home Loan Banks; So Does Thrift Risk.(Federal Home Loan Bank System)
Apr 01, 2003; ... The Federal Home Loan Bank System said its net income fell 16.5% last year as it struggled with low interest rates and losses on derivatives and hedging arrangements. Separately, the Office of Thrift Supervision, which oversees many institutions dependent on Home Loan bank ...
Spare Change: Who Gets A Quacker? Lucky Duck.(Bank of Smithtown gives Lucky Duck awards to employees)
Apr 01, 2003; ... Some chief executive officers show their appreciation for their workers with handshakes, plaques, or holiday parties. Bradley Rock, the CEO of Bank of Smithtown, located in the eastern Long Island county known for its duck farms, makes quacking noises. Whenever Mr ....
FDIC Adds Chinese `Money Smart'.(Federal Deposit Insurance Corp., Chinese version of Money Smart curriculum)
Apr 01, 2003; ... Financial literacy courses usually focus on teaching unbanked people how to get into the mainstream, but the Federal Deposit Insurance Corp. has found that for Chinese people who already have accounts, learning how to navigate that stream is more important. On Friday the FDIC ...
Portfolio Trend Readers Get Wider Following.(loan portfolios)
Apr 01, 2003; ... Credit card issuers and other lenders, stuck in a second year of rising chargeoff rates, are turning to outside help in predicting the effects of growing unemployment and geopolitical unrest on their loan portfolios. Companies that specialize in this type of analytics say their ...
Creativity Is Key to Cashing In On Shift Toward E-Payments.
Apr 01, 2003 ... Any organization that is puzzled about what consumers want need look no further than this statistic: Today only 61% of U.S. consumer spending involves the use of checks or other paper-based payment options, down from 81% in 1990. Though technological innovation has ...
In Brief: Exchange-Traded Funds Shrank.(Brief Article)
Apr 01, 2003 ... Assets in exchange-traded funds declined in February, according to data from the Investment Company Institute. Exchange-traded funds fell 3.1%, to $92.83 billion, that month, the institute said on Friday. Equity index exchange-traded funds fell 3.3%, to $89 billion, and bond ...
In Brief: Hedge Funds Up 0.81% in Feb.(Brief Article)
Apr 01, 2003 ... Hedge funds gained slightly in February, according to data from the MSCI Hedge Fund Composite Index. The index showed that hedge fund values rose 0.81% in February. In January, the index rose 1.38%, Morgan ...
In Brief: CGU Life Alters Name to Aviva.(CGU Life Insurance Company of America changes its name to Aviva Life Insurance Co.)(Brief Article)
Apr 01, 2003 ... CGU Life Insurance Co. of America, a provider of life insurance and fixed- rate annuity products, said it has changed its name to Aviva Life Insurance Co. The company said on March 24 that the name change, which applies to all its U.S. products, is intended to leverage the ...
Harris Bank Hopes to Boost Wallet Share via Online Unit.
Apr 01, 2003; ... After an online brokerage buying spree last year that resulted in the creation of HarrisDirect, its CEO says the Chicago-based unit of Bank of Montreal plans to help Harris Bank cross-sell to current customers who use the Web. An analyst, however, says that, in looking for ...
Insurer-Owned Thrift Maps Growth Strategy.(Principal Bank )
Apr 01, 2003; ... Executives at Principal Bank of Des Moines, an insurer-owned thrift, say the brand-name backing of its parent and a growing acceptance of online banking will help it grow to $5 billion of assets by 2005. But analysts said the verdict is still out on whether such thrifts can be ...
In Brief: Amro Subsidiaries Funded More Loans.(ABN Amro Mortgage Group Inc.'s National Lending Center funded $820 million of loans in 2/03)(Brief Article)
Apr 01, 2003 ... ABN Amro Mortgage Group Inc. says its customer retention and e-commerce lending division, National Lending Center, funded $820 million of loans in February - nearly twice as much as it did in February 2002. In a press release Friday, the ABN Amro Holding NV unit said ...
In Brief: Capital Trust Links Loss to Conversion.(Brief Article)
Apr 01, 2003 ... Capital Trust Inc. lost $14 million in the fourth quarter, or 84 cents a share, versus a profit of $2 million, or 11 cents a share, a year earlier. In a press release Friday, the commercial real estate finance firm reiterated that it had triggered the losses in preparation for ...
In Brief: Fairbanks Ratings Safe, for Now: Fitch.(Fairbanks Capital Corp.)(Brief Article)
Apr 01, 2003 ... Fitch Inc. said Monday that, despite impending regulatory investigations into Fairbanks Capital Corp.'s practices, it does not expect to change its ratings for the Salt Lake City servicing company. The agency said it would maintain Fairbanks' grade of RPS1 for subprime ...
Some Lenders Turning to Compliance Software.
Apr 01, 2003; ... Facing an array of state and federal laws against predatory lending, some lenders have started using automated due diligence programs to help them avoid the legal hassles that can come with the subprime business. This group now includes EMC Mortgage Corp. in Irving, Tex., the ...
Bond Group: Rule Would Hurt NYC.(predatory lending ordinance)(Brief Article)
Apr 01, 2003 ... New York City's predatory lending ordinance would restrict the availability of credit to subprime borrowers and could increase the city's borrowing costs, according to the Bond Market Association. The trade group filed an amicus brief with the New York State Supreme Court on ...
In Brief: Allegiant Has Tellers Doing Image Capture.(Brief Article)
Apr 01, 2003 ... Allegiant Bank has begun teller-window capture of check images. Kimberli Palmer, the senior vice president of operations and information technology at Allegiant Bank, said Allegiant spent a year testing the system with two vendors. "We like doing that. We're real ...
In Brief: Ohio Bank Shores Up Its Hacker Defenses.(Brief Article)
Apr 01, 2003 ... Putting an extra layer of security on key server computers has helped Ohio Savings Bank improve its data protection and hacking prevention, an executive says. Ohio Savings' core business is wholesale mortgage origination. It provides correspondent lenders and mortgage brokers ...
In Brief: Citywide's Addition By Encryption.(Citywide Banks of Colorado Inc. tightens security with Sigaba secure e-mail software)(Brief Article)
Apr 01, 2003 ... By encrypting the e-mail messages it sends to customers, Citywide Banks of Colorado Inc. has tightened security and reassured account holders, it says. "I'd be better off sending a postcard with my personal information on it than an unencrypted e-mail," said J.J. Dunne, the ...
In Brief: Huntington Explains Its Move to BEA.(satisfied with performance of BEA Systems Inc. for Internet banking applications)
Apr 01, 2003 ... Huntington National Bank is giving the story behind its switch to BEA Systems Inc. for Internet service, a move that it made some time ago but that only came to light last month. The story goes back the fall of 2000 and spring of 2001. The principal operating unit of Huntington ...
In Brief: SunTrust Uses Watchfire Tools.(SunTrust Banks Inc. licenses Internet and privacy monitoring software from Watchfire Corp.)(Brief Article)
Apr 01, 2003 ... SunTrust Banks Inc. has started using software that helps it see how its brand is being depicted on the World Wide Web and keep an eye on its own site and those of partners. Monica Champion, the senior vice president of Internet and e-business at SunTrust, said it signed a ...
In Brief: No Cash Bonus in '02 for Bank of N.Y. Execs.(Brief Article)
Apr 01, 2003; ... Executives at Bank of New York Co. did not receive cash bonuses last year, according to a proxy filed with the Securities and Exchange Commission on Monday. The filing states the company did not pay a cash bonus to its chairman and chief executive, Thomas A. Renyi. ...
In Brief: Metavante Picks New President and CEO.(Brief Article)
Apr 01, 2003 ... Metavante Corp. said Monday that its chairman, president, and chief executive, Joseph L. Delgadillo, had resigned. The financial technology subsidiary of Marshall & Ilsley Corp. named Frank R. Martire, the president of the financial services group, to succeed him as the ...
In Brief: MBNA Makes CFO, Committee Appointments.(Brief Article)
Apr 01, 2003 ... MBNA Corp. announced Monday that it had named Vernon H.C. Wright its chief financial officer, succeeding M. Scot Kaufman, who has been appointed the chairman of the finance and loan committee, and a member of the executive committee. Kenneth A. Vecchione remains the ...
In Brief: Lakeland of N.J. in Deal for CSB Financial.(Lakeland Bancorp Inc.)(Brief Article)
Apr 01, 2003; ... Lakeland Bancorp Inc. announced Monday that it had agreed to purchase CSB Financial Corp. of Teaneck for $34 million in cash and stock. The move would expand Lakeland's presence in New Jersey's affluent Bergen County. Lakeland, with assets of $1.2 billion, has one ...
Fiserv Says Apparent Scam Cost It $10M.(Brief Article)
Apr 01, 2003; ... Fiserv Inc. reported Monday that it recently lost $10 million, or 5 cents a share, as a result of an apparently fraudulent trading scheme at a short-seller. The case involved a broker-dealer client of its securities processing division that specialized in selling short for its ...
Linux Poised To Move into Retail Banking.
Apr 01, 2003; ... Just two years ago, Linux was hardly more than a curiosity in the financial services industry. Intrigued by the free "open source" operating system, a handful of brokerage firms began testing it deep in their backrooms on gnarly, computing-intensive applications like risk ...
As Others Leap In, Insurance Firms Wait and See.(insurers' conservatism slows adoption of Linux operating system)
Apr 01, 2003; ... Even though more financial services players are starting to use the Linux operating system, insurers are hanging back, citing concerns about product support and business disruption. Insurers' adoption "is going to be slower, just because there's a lot of issues to resolve ...
An Industry's Early Adopters Move Ahead.
Apr 01, 2003; ... Linux is winning converts in the brokerage industry for the robust performance it delivers at bargain prices. The open-source-code operating system offers as much power as Unix or Windows NT systems and probably more speed, at much lower cost, industry analysts and insiders ...
After 9/11, Lehman Turns to Linux for the Long Haul.(Lehman Brothers Holdings Inc. switches to Linux for cost reasons)
Apr 01, 2003; ... In the months after the 9/11 terror attacks Lehman Brothers Holdings Inc. made a technology decision that would have been surprising a few years earlier. The New York investment bank lost 60% of its computing capacity in the attacks, including about 1,000 servers. It occupied ...
Lehman and Linux.
Apr 01, 2003 ... The Goal: * Firm lost 1,000 servers in terrorist attacks on World Trade Center * Computer hardware acquisition costs too high in down market * Proprietary systems provide limited flexibility The Solution: * Run Linux operating system ...
Moglen: Banks and Free Software a Perfect Fit.(Free Software Foundation )
Apr 01, 2003; ... Eben Moglen is the general counsel for the Free Software Foundation, a Boston group that promotes computer users' right to use, study, copy, modify, and redistribute computer programs. The Linux-based version of its GNU operating system (the name is a recursive acronym, a kind ...
Budget Crunch Motivates Banks to Look at Linux.
Apr 01, 2003; ... Because of the slumping economy, financial services companies' technology budgets are tight. This spending squeeze comes at a particularly bad time, with customer relationship management, online banking, trade processing, and other data-heavy applications straining back offices to ...
TODAY'S NEWS.
Apr 02, 2003 ... New York's governor has promoted Barbara Kent to acting banking superintendent. Page 2 WASHINGTON A provision of the Fair Credit Reporting Act that bankers like will get its first airing in Congress next month. Page 5 House members were preparing three ...
Retailers Claim Edge In the Wal-Mart Case.(Wal-Mart Stores Inc. antitrust case against MasterCard International Inc., Visa U.S.A. Inc.)
Apr 02, 2003; ... A partial summary judgment victory for retailers in the Wal-Mart suit against Visa U.S.A. and MasterCard International means that the much-anticipated trial, slotted for April 28, is already more than half won, retailers' attorneys said Tuesday. In an unexpected lift to the ...
Profitable But Risky, Subprime Stress-Tested.(higher-risk borrowing)
Apr 02, 2003; ... First of two parts Consumer finance has been a savior in the latest recession -- yielding double-digit returns that offset declines in investment banking and other capital markets activities. Spending by individuals has continued despite the weakening economy, and ...
NCUA Re-Ups Push for CUs To Do More Biz Lending.(U.S. National Credit Union Administration, credit unions )
Apr 02, 2003; ... On the heels of its decision to dramatically loosen its field-of-membership rules -- making it easier for federal credit unions to adopt all-inclusive community charters -- the National Credit Union Administration has proposed a series of sweeping changes to its business-lending ...
PayPal Said In Violation Of Patriot Act.
Apr 02, 2003; ... eBay Inc.'s PayPal unit has again come under legal scrutiny for its online gambling business. The U.S. attorney for the Eastern District of Missouri sent PayPal a letter Friday contending that by providing services to online gambling merchants PayPal had violated the USA Patriot ...
Gold Details Fraud Allegations vs. Ex-CEO.(Gold Banc Inc.)(Brief Article)
Apr 02, 2003; ... An investigation into the financial dealings of Gold Banc Inc.'s former chief executive officer, Michael W. Gullion, found that he diverted nearly $2 million of its money into his own account and that he spent another $600,000 on personal expenses, the bank said in a Securities and ...
Deputy Appointed Acting Leader of N.Y. Banking Department.(Barbara Kent)
Apr 02, 2003; ... New York Gov. George Pataki has named Barbara Kent the state's acting banking superintendent. The move came just days after the resignation of the state's longest-serving banking regulator. Ms. Kent, who begins her new post today, was already a department deputy and the director ...
Executive Changes.(Federated Investors Inc. of Pittsburgh has hired Philip J. Orlando and Uri D. Landesman)
Apr 02, 2003; ... MIDDLE ATLANTIC Federated Investors Inc. of Pittsburgh has hired Philip J. Orlando and Uri D. Landesman as senior portfolio managers. Mr. Orlando will manage its large-cap growth portfolios. He was the chief investment officer at the New York-based Value Line Inc., ...
In Brief: 10-K Delay for Provident.(Brief Article)
Apr 02, 2003 ... Provident Financial Group Inc., the parent company of Provident Bank, said Tuesday that it had been forced to delay its annual 10-K filing with Securities and Exchange Commission. The delay stems from the company's disclosure last month of errors in its accounting for nine auto ...
In Brief: Lower Outlook on Fifth Third.(Brief Article)
Apr 02, 2003; ... Moody's Investors Service on Tuesday lowered the outlook for its ratings on Fifth Third Bancorp. to "stable" from "positive." The agency confirmed the Aa2 rating on the Cincinnati holding company and the Aa1 rating on its main subsidiary, Fifth Third Bank. Fifth ...
In Brief: House Passes Corporate Account Bill.(Brief Article)
Apr 02, 2003; ... The House approved legislation Tuesday that would let banks offer interest-bearing corporate checking accounts as early as 2005. The bill, which passed in a voice vote, also would allow banks to sweep funds into interest-bearing accounts 24 times a month and let the Federal ...
In Brief: Deposit Insurance Reform Amendments.(Brief Article)
Apr 02, 2003; ... House lawmakers were preparing three amendments to deposit insurance reform legislation on Tuesday, the eve of a vote.Rep. Dana Rohrabacher, R-Calif., was expected to offer an amendment that would remove all deposit insurance coverage increases in the bill. Specifically, it would delete ...
In Brief: Committee Vote Set on Reg Relief Bill.(Brief Article)
Apr 02, 2003; ... A House Financial Services subcommittee is expected to vote April 9 on a bill that would ease some regulations for banks, thrifts, and credit unions. Most of the measure is noncontroversial, but the Federal Reserve Board has expressed concern about proposed expansions of ...
In Brief: Mortgage Overhaul Witness Slate Set.(Brief Article)
Apr 02, 2003; ... The Senate Banking Committee named witnesses Tuesday for its scheduled April 8 hearing on the Department of Housing and Urban Development's pending proposal to overhaul mortgage regulations. They include John Courson, the chairman of the Mortgage Bankers Association chairman; ...
Hearing Planned for FCRA Extension.(Fair Credit Reporting Act)(Brief Article)
Apr 02, 2003; ... A provision of the Fair Credit Reporting Act that the financial services industry wants to protect will get its first public airing in Congress next month. Senate Banking Committee Chairman Richard Shelby announced Tuesday that he plans to hold hearings in May or June on the ...
Comment: What King Arthur Can Teach About Officer Meetings.(Brief Article)
Apr 02, 2003; ... If you need a recipe for a successful officers' meeting, here are the ingredients: Recognizing accomplishments, informal seating arrangements, and plenty of good food. I recently attended the annual meeting of $2.8 billion-asset Columbia Bank of Fair Lawn, N.J., and the ...
Canada Life Mailer Pushes Great-West Deal.(Brief Article)
Apr 02, 2003; ... Canada Life Financial Corp. said it has mailed shareholders a circular that recommends they approve its deal to be bought by the Colorado company Great-West Lifeco for $5 billion. Shareholders are to vote May 5 on the deal, which was announced Feb. 17 and is unanimously ...
Fidelity Bucks Convergence With Vertical Reorganization.
Apr 02, 2003; ... Fidelity Investments Inc. has made its investment advisory, brokerage clearing services, and capital markets units stand-alone businesses. Speaking at Fidelity's fifth annual executive forum Monday, Ellyn McColgan, the president of Fidelity Brokerage Services, said it separated out the ...
Surging Sales for Allstate Fixed Life Product via Banks.
Apr 02, 2003; ... Bank sales of one of Allstate Corp.'s key life insurance products grew by more than 50% last year because of an easy application and increased interest in life insurance among customers, an executive at the Northbrook, Ill., company said. The product: Generation Advantage Single ...
Comment: Technology and Other Keys To the Boom in Refinancing.(Industry Overview)
Apr 02, 2003; ... Last year, close to 10 million homeowners refinanced their mortgages. They cashed out almost $200 billion of their accumulated home equity, far exceeding any previous record. Low mortgage rates and rising home values made cash-out refinancing attractive. But it took a revolution ...
Debit Disputes Could Frame Check 21 Debate.
Apr 02, 2003; ... In hearings to be conducted Thursday in the Senate and Tuesday in the House, provisions in the pending check truncation legislation that stipulate the length of time banks have to investigate processing errors will no doubt get a lot of scrutiny. The debate over procedures that ...
Metris Gets $125M Loan Commitment.(Brief Article)
Apr 02, 2003; ... The credit card issuer Metris Cos. Inc. said it has obtained a $125 million term loan commitment from Thomas H. Lee Equity Fund IV LP, which is owned by the Boston private equity firm Thomas H. Lee Co. The backup facility would carry annual interest of 12% plus an option to earn ...
How Concord Could Reshape First Data-Visa Fight.
Apr 02, 2003; ... A deal to buy Concord EFS Inc. would probably put First Data more directly on a collision course with Visa U.S.A., which has been courting Concord's bank clients for their automated teller machine and point of sale debit processing contracts. Executives from First Data and ...
In Brief: Wider Probe of Wachovia Share Purchases.(Brief Article)
Apr 02, 2003; ... Wachovia Corp. said a Securities and Exchange Commission investigation of share purchases between 1996 and 2001 may include shares acquired under forward purchase contracts as well as those acquired through open-market purchases. Wachovia announced Monday that the SEC is ...
In Brief: Smith Barney Replaces U.S. Equities Chief.(Jonathan Joseph )(Brief Article)
Apr 02, 2003; ... Jonathan Joseph took the helm Tuesday as Smith Barney's director of equity research for the United States and the Americas, according to an internal memo. Mr. Joseph joined the Citigroup Inc. unit in March 1999 as its senior semiconductor analyst. On Tuesday he essentially ...
In Brief: JPM, Morgan Stanley to Merge Indexes.(J.P. Morgan Chase )(Brief Article)
Apr 02, 2003; ... J.P. Morgan Chase & Co. and Morgan Stanley said Tuesday that they will combine six globally traded credit derivative default swap indexes July 25. The firms will structure, market, and trade a set of regional credit derivative instruments, called Tracx, in the United ...