American Banker back issues from August 2003:
TODAY'S NEWS.
Aug 01, 2003 ... FleetBoston is part of a group chosen by New York State to manage its College Savings Program. Page 3 WASHINGTON Page 4 COMMUNITY BANKING Alabama bankers are divided over a proposal that could increase bank taxes by millions of dollars. Page 5 ...
Why Visa Chief Exec Sees Blue Sky Post-Settlement.(Visa U.S.A. president and CEO Carl F. Pascarella is interviewed)(Interview)
Aug 01, 2003; ... If the Wal-Mart case against Visa U.S.A. and MasterCard International had gone to trial, it's possible that Carl F. Pascarella, Visa's president and chief executive, would have spent much of the summer waiting nervously in a Brooklyn courtroom for a verdict. Instead, he is ...
Wells' Privacy Fix:Cut Down On 'Affiliates'.(Wells Fargo & Co. applies to combine its 19 national bank charters into one)
Aug 01, 2003; ... As state and federal lawmakers wrestle with restricting how banking companies share information with their affiliates, one company has come up with a partial solution: eliminate affiliates. In what it called a preventive measure, Wells Fargo & Co. on Monday applied to the Office ...
Do Board Structure, Chairman's Role Contribute to FHLB Strife?(Federal Home Loan Bank System)
Aug 01, 2003; ... Second in a series Founded in the darkness of the Depression with a mandate to help keep Americans in their homes, the Federal Home Loan Bank System has provided low-cost funds to banks for generations, which they in turn lend to homeowners at rates lower than the market would ...
OCC Preempts In Ga. -- and Details Policy.(the Office of the Comptroller of the Currency overrides the Georgia Fair Lending Act)
Aug 01, 2003; ... The Office of the Comptroller of the Currency surprised few observers Thursday when it overrode the Georgia Fair Lending Act, but it took the extra step of asserting broader preemption powers and proposing a new predatory- lending requirement. The twin proposals -- a sturdier ...
People.(Wachovia Corp. opens branches in New York)
Aug 01, 2003; ... It's Up to You ... How does a southern banking company with a difficult name looking to make a splash in the Big Apple get the attention of New Yorkers? If you're Wachovia Corp., you show up armed with 10,000 Krispy Kreme doughnuts, pronunciation guides, and North ...
Executive Changes.(banking personnel news briefs)
Aug 01, 2003; ... MIDWEST Monroe Bank of Bloomington, Ind., has hired John E. Christy as its central Indiana president, a newly created job. Mr. Christy was the manager of the West Florida middle-market division and a senior vice president at SouthTrust Bank of Birmingham, Ala. Before ...
Banking Industry Divided On Tax Hike Referendum.(Alabama's banking industry debates a plan thta could increase bank taxes)
Aug 01, 2003; ... Less than six weeks before a statewide referendum, the industry in Alabama remains divided over a plan that could increase bank taxes by millions of dollars. On Sept. 9 voters will go to the polls to cast their ballots on Gov. Bob. Riley's tax proposal package, which is valued ...
Bank-Owned Insurance Can Finance Exec Retirement, Raise Share Value.
Aug 01, 2003; ... The demand for bank-owned life insurance is strong, and for good reason. It provides a financing source for senior executives' supplemental, nonqualified retirement plans. It can also help offset employee costs, including skyrocketing health insurance premiums. ...
3,000 Reasons a Day Why Immigrants Pose Opportunity.(for the banking industry)
Aug 01, 2003; ... One group of potential new bank customers is growing at the rate of about a million a year. They're not babies or recent college grads, but immigrants -- and nearly 3,000 arrive here every day to join the 33 million who make America their home. They're not just the customers of ...
In Brief: Moody's Cuts Rating On GMAC '97 Bonds.(Moody's Investors Service Inc., GMAC Commercial Mortgage Securities Inc.)(Brief Article)
Aug 01, 2003 ... Moody's Investors Service Inc. on Thursday cut its ratings on $153 million of mortgage-backed bonds issued in 1997 by GMAC Commercial Mortgage Securities Inc. The downgraded bonds were the five most subordinated classes from a $920 million securitization. The agency affirmed its ...
In Brief: Bank Helps ITLA's Profits Rise 14.3%.(ITLA Capital Corp. earns $5.5 million in the second quarter)(Brief Article)
Aug 01, 2003 ... ITLA Capital Corp. earned $5.5 million, or 85 cents per share, in the second quarter, 14.3% more than it did in the same period last year. Net interest income jumped 14.5%, to $20 million, the La Jolla, Calif., holding company said in a press release issued Wednesday after the ...
In Brief: Mellon Closes Arden Group Purchase.(Brief Article)
Aug 01, 2003 ... Mellon Financial Corp. said Thursday that it had completed its purchase of Arden Group, an Atlanta private investment management firm. The two announced the deal on April 7 but have not disclosed the price. Arden, which specializes in high-net-worth clients, manages ...
In Brief: Net Income at Canada Life Tumbles 6%.(in the second quarter)(Brief Article)
Aug 01, 2003 ... Canada Life Financial Corp. posted second-quarter net income of $84 million, down 6% from a year earlier. Net investment income of $409 million was up 20%, largely due to gains on investments supporting certain equity-based insurance products, it said on Wednesday. But those ...
In Brief: Losses at Phoenix Cos. Widen by 33%.(in the second quarter)(Brief Article)
Aug 01, 2003 ... Phoenix Cos. Inc. on Thursday reported a second-quarter net loss of $49.5 million, 33% worse than a year earlier. The Hartford, Conn., company's life and annuity business had pretax income of $27.2 million, down 2% from a year earlier but up 56% from the ...
In Brief: Wilmington Trust Starts Strategy Group.(forming the Investment Strategy Team)(Brief Article)
Aug 01, 2003 ... Wilmington Trust Corp. announced Thursday that it had created the Investment Strategy Team, a group headed by experts from its Delaware headquarters and its investment counseling firm Balentine & Co. in Atlanta. The team's goal to construct investment strategies for controlling ...
Variable Annuity Sales Surge At Sun Life's Bank Marketer.(Independent Financial Marketing Group has strong variable annuity sales but stagnant fixed annuity sales)
Aug 01, 2003; ... Low interest rates and an improving stock market have led to strong variable annuity sales but stagnant fixed annuity sales at Independent Financial Marketing Group, the top third-party marketer through banks. The Purchase, N.Y., unit of Toronto's Sun Life Financial Inc. said ...
New Obstacle to Permanent FCRA Preemption.(the Senate Banking Committee holds a hearing on the renewing of part of the Fair Credit Reporting Act)
Aug 01, 2003; ... A hearing Thursday of the Senate Banking Committee gave the clearest clues to date on the direction of the bill renewing a key provision of the Fair Credit Reporting Act, and the signs are not good for the financial services industry. Panel Chairman Richard Shelby strongly ...
Metavante Reselling Intranet System.(S&T Bank's eBusiness Content Manager is gaining a wider market)
Aug 01, 2003; ... A community bank in Pennsylvania has hired Metavante Corp. to resell the intranet management software it developed for in-house use. The agreement, announced last week, broadens the potential market for eBusiness Content Manager, developed by S&T Bank of Indiana, Pa ....
Will Hedges Come Back To Haunt Mortgage Firms?(banks are using several instruments to hedge their mortgage businesses)
Aug 01, 2003; ... Banks use a smorgasbord of instruments to hedge their mortgage businesses against interest rate movements -- a practice that has become increasingly important over the past three years as rates have dropped to historic lows. But now that rates have started to rise rapidly, will ...
In Brief: John Hancock Profits Up Almost Threefold.(in the second quarter)(Brief Article)
Aug 01, 2003; ... John Hancock Financial Services Inc. on Thursday reported that its second-quarter net income nearly tripled from a year earlier, to $289.9 million. "We are pleased with the demonstrated strength of our strategy of diversification among businesses, products and distribution ...
In Brief: State St.: We'll Retain Deutsche Clients.(State Street Corp. is retaining most of the clients from Deutsche Bank's global securities services operations)(Brief Article)
Aug 01, 2003 ... State Street Corp. says it will meet its goal of retaining 90% of the revenue available from the clients it gained in January, when it bought Deutsche Bank AG's global securities services operations. "State Street has made great progress in bringing our new GSS clients on ...
In Brief: Fitch to Keep Rating Fla., D.C. Loan Bonds.(Fitch Inc.)(Brief Article)
Aug 01, 2003; ... Fitch Inc. announced Thursday that it will continue to rate bonds backed by high-cost mortgages in Florida and the District of Columbia. The rating agency said the predatory lending laws there limit the liability of secondary market investors for any violations by originators. ...
In Brief: Tex. Capital Registers for Public Offering.(Texas Capital Bancshares Inc. plans an initial public offering)(Brief Article)
Aug 01, 2003; ... Texas Capital Bancshares Inc. announced Thursday that it had filed a registration statement with the Securities and Exchange Commission for an initial public offering. The $1.9 billion-asset company plans to issue 6.9 million shares -- 3 million to be sold the public, 3 million ...
In Brief: Survey Finds More Farm, Biz, CRA Loans.(the Federal Financial Institutions Examination Council releases its 2002 data on small-business, small-farm, and community development lending)(Brief Article)
Aug 01, 2003 ... The Federal Financial Institutions Examination Council on Thursday released its 2002 data on small-business, small-farm, and community development lending by commercial banks and thrifts under the Community Reinvestment Act. The 1,986 institutions surveyed made approximately 8 ...
Banks and Thrifts with Highest Nonperformer Ratios on March 31, 2003.(a ranking of 150 banks)(Illustration)
Aug 01, 2003 ... Dollars in thousands (part 1 of 4) <Pre> 1Farmers Bank Hamburg, Ark. 2Reliance Bank White Plains, N.Y. 3Eastern Savings Bank FSB Hunt Valley, Md. 4Brickyard Bank Lincolnwood, Ill. 5Purdum State Bank Neb. 6Peoples ...
Black-Owned Banks Emerge As Dealmakers.
Aug 04, 2003; ... Loosening up at risk-averse institutions Black-owned banks and thrifts are not accustomed to merger speculation; many are known for their conservatism, and with a few notable exceptions, deals in the niche had been rare. Citizens Bancshares Corp. in Atlanta, the ...
Mellon Still Seeks Recipe For HR Profits.(Mellon Financial Corp.)
Aug 04, 2003; ... Even though it now generates about a quarter of Mellon Financial Corp.'s noninterest revenues, when company executives discussed results for the second quarter, the human resources services division was not mentioned. The Pittsburgh company instead touted the improvements in its ...
'New' Discount Window, Same Old Stigma.
Aug 04, 2003; ... Borrowing at the discount window, for decades a contingency to avoid at almost any cost, is no longer taboo. Really. Six months after the Federal Reserve Board made changes meant to encourage bankers to use the window more often, regulators last week issued new ...
Servicing Turnaround? 2 Portfolios Test Market.(Ohio Savings Bank, Flagstar Bancorp Inc.)
Aug 04, 2003; ... When Ohio Savings Bank put $5.4 billion of mortgage servicing rights up for sale last week, it was the first major offering of such a portfolio in almost six months. The Cleveland thrift's move is perhaps the clearest indication yet that the market does not expect the recent ...
Executive Changes.(various companies)
Aug 04, 2003 ... NEW ENGLAND Citizens Mortgage Corp., a Providence, R.I., unit of Royal Bank of Scotland Group PLC, has officially named Stephen E. Adamo its president and chief executive officer. He had held those jobs on an interim basis since September. This is the ...
Washington People.(briefs)
Aug 04, 2003; ... Leave It Alone Talk about being caught in the middle. House Financial Services Committee leaders are urging the Treasury to ignore complaints from another influential congressman and leave a rule requiring banks to verify customers' identities as is. The ...
Spiegel's Card Bank Told To Reimburse Customers.(First Consumers National Bank)(Brief Article)
Aug 04, 2003 ... Under an agreement with federal regulators, First Consumers National Bank will repay $1.9 million of annual fees and late charges it assessed cardholders when it knew it would shortly shut down its credit card operations. The Beaverton, Ore., bank, a unit of the bankrupt catalog ...
Gold of Kan. Raises Notion of a Sale.(Gold Banc Corp.)
Aug 04, 2003; ... Don't expect Gold Banc Corp. of Leawood, Kan., to make any purchases any time soon -- in fact, the once-acquisitive community banking company may be ready to sell itself. Gold has not acquired a bank since early 2000, and its new chief executive said last week that it would ...
Fair Isaac's Latest Line: Handling Chargeoffs.
Aug 04, 2003; ... Fair Isaac Corp. typically offers risk assistance to lenders during the acquisition and life of an account, rather than its postmortem. But with its purchase last week of Narex Inc., the credit scoring specialist it is treading into new territory, offering services after an ...
U.S. Bancorp: We Bought Provident Biz.(Nova Information Services buys merchant processing business)(Brief Article)
Aug 04, 2003 ... When Provident Financial Group Inc. sold its Florida branch network to Royal Bank of Canada's RBC Centura Banks Inc. a few weeks ago, it also sold off $471 million of subprime residential mortgage loans, and its merchant processing business. But at the time the Cincinnati ...
Dividend Targets: How High Should They Go?
Aug 04, 2003; ... Dividends are a topic of discussion in board rooms across corporate America. After years of share repurchasing, respect for the dividend has returned. As banks mull increasing the payouts they make to shareholders, one question is how high should the dividends go? In ...
In Brief: Hancock Still Shopping in U.S.(John Hancock Financial Services Inc. seeks acquisition targets)(Brief Article)
Aug 04, 2003 ... John Hancock Financial Services Inc. is still looking to expand its core businesses through acquisitions, its chairman and chief executive officer says. During the Boston company's second-quarter earnings conference call on Friday, David D'Alessandro predicted that companies ...
In Brief: Northwestern Ratings Affirmed.(Northwestern Mutual Life Insurance Co.)(Brief Article)
Aug 04, 2003 ... Moody's Investors Service Inc. on Thursday affirmed its Aaa insurance financial strength rating on Northwestern Mutual Life Insurance Co. It also affirmed its Aaa rating for the Milwaukee insurer's guaranteed subsidiary, Northwestern Long Term Care Insurance Co. The outlook on ...
In Brief: Thrift Group Starts Life Program.(America's Community Bankers)(Brief Article)
Aug 04, 2003 ... America's Community Bankers on Friday endorsed a bank-owned life insurance program that it said will enhance community banks' financial competitiveness. The program -- offered through Meyer-Chatfield Corp., a Jenkintown, Pa., company that consults exclusively with financial ...
New Unit to Help BB&T Court Wealthy Clients in Southeast.
Aug 04, 2003; ... BB&T Corp. says its planned wealth management division is meant to attract and retain affluent clients in the Southeast. The manager of the unit, whose formation was announced last week, says it will combine the personal trust and private financial services departments of the ...
E-Trade Sees RV Lending Paving the Way to Growth.(recreational vehicles)
Aug 04, 2003; ... E-Trade Group Inc. is hoping its foray into recreational vehicle and marine lending not only diversifies revenues but provides new customers for its growing list of financial products. Last December the McLean, Va., company bought Ganis Credit Corp., one of the country's largest ...
Correction.(Correction Notice)
Aug 04, 2003 ... In Thursday's paper, "FHLB Strife: The Roots Lie Partly in a Dual Mission" on page 1 incorrectly stated how joint and several liability for the Home Loan Bank System's debt was created. The Federal Home Loan Bank Act created it. Under former Chairman Bruce Morrison, the ...
In Brief: Morgan Chase Plucks a Citi Banker.(Steve Rehm appointed managing director)(Brief Article)
Aug 04, 2003 ... J.P. Morgan Chase & Co., which is refocusing its financial institutions practice, snared a senior Citigroup Inc. banker. Steve Rehm joined Morgan Chase last week as managing director in its North American investment client management group, which provides fixed-income services ...
In Brief: Home Loan Rejections Fell Again in 2002.(Brief Article)
Aug 04, 2003 ... The percentage of Americans who were denied conventional home loans fell for the fourth consecutive year in 2002, according to data published Friday by federal financial services regulators. The annual release of data collected under the Home Mortgage Disclosure Act showed that ...
In Brief: IndyMac Reports 20% Earnings Increase.(IndyMac Bancorp Inc.)(Brief Article)
Aug 04, 2003 ... IndyMac Bancorp Inc. said second-quarter earnings rose 20%, to $41.4 million. Per-share earnings for the $10.7 billion-asset Pasadena, Calif., thrift were 73 cents, a penny better than the consensus. Revenues jumped 25%, to $173 million, and mortgage loan production 73%, to $8 ...
CEO of everbank Drawing from Web-Only History.(Frank O. Trotter III)
Aug 04, 2003; ... Way back in the Stone Age of the Internet -- 1995, to be precise -- Frank O. Trotter 3d was at the center of what was then considered among the most forward-looking payments projects around: a Web site, hosted by the bank he worked for, that let people exchange greenbacks for digital money ...
Citi: Fewer SPE Assets Going to Sheet.(Citigroup Inc. makes changes due to new accounting rules)
Aug 05, 2003; ... Citigroup Inc.'s plan to put back on its balance sheet $5 billion it had offloaded to special-purpose entities will likely be the first of many announced by banking companies in response to a new accounting rule. But analysts said the plan, revealed Monday in a Securities and ...
Risk Management Chief Helping to Reshape B of A.(Bank of America Corp. chief risk officer Amy Woods Brinkley leads the company's focus on profits)
Aug 05, 2003; ... Amy Woods Brinkley has been at the center of Bank of America Corp.'s recent shift in focus away from acquisitions and toward squeezing profits from a leaner, more tightly integrated set of businesses. Now the $769 billion-asset Charlotte company's chief risk officer, Ms ....
Why State Banks Pass On Wild Card.(banking legislation)
Aug 05, 2003; ... By now most states have passed so-called wild-card legislation that gives state-chartered banks and thrifts parity with their federally chartered counterparts. But as illustrated by debates in New Jersey over lenders' right to charge mortgage prepayment penalties, banks and ...
Today's News.
Aug 05, 2003 ... WASHINGTON Regulators released a proposal for the U.S. implementation of new international bank capital rules. Page 4 A look at federal regulators' latest financial disclosure statements. Page 4 COMMUNITY BANKING Wintrust of Lake Forest, Ill., ...
Put Up or Pay Up, Visa Tells Debit Issuers.(banks are trying to figure out how to market debit cards)
Aug 05, 2003; ... Since the Wal-Mart settlement, some banks have been reconsidering how hard to market debit cards, but recently Visa check card issuers have learned that any retreat will come at a price. William A. Cooper, TCF Financial Corp.'s chairman and chief executive officer, said it ...
In Brief: Regulators Issue Basel II Proposal.(the U.S. plans new international bank capital rules)(Brief Article)
Aug 05, 2003; ... Federal financial services regulators on Monday released a proposal for the limited U.S. implementation of new international bank capital rules. In all, three documents concerning the rules were published in the Federal Register. The first is an advance notice of proposed ...
In Brief: FDIC to Hold Parley on Failures.(the Federal Deposit Insurance Corp. plans a symposium for 10/24/03)(Brief Article)
Aug 05, 2003; ... The Federal Deposit Insurance Corp. is planning a symposium Oct. 24 to discuss the lessons learned from recent bank failures. The agency said that the failures since 1997, involving institutions with $6.2 billion of assets, had been relatively modest, but that "the financial ...
In Brief: ICBA Installs State-Regional Exec.(the Independent Community Bankers of America promotes Paul McGuire to vice president)(Brief Article)
Aug 05, 2003; ... The Independent Community Bankers of America has promoted Paul McGuire to vice president for state and regional operations. The group said Mr. McGuire is responsible for oversight of all regional recruiters and for developing new recruitment and retention strategies. ...
Regulators Put Their Millions to Offbeat Uses.
Aug 05, 2003; ... Like everyday investors, federal financial regulators have been hunting for a place to put their personal assets other than the stock market. But the regulators' latest financial disclosures showed that their larger-than-average balance sheets have given them more options than ...
Wintrust Shopping For More Small, Feisty Start-Ups.
Aug 05, 2003; ... Wintrust Financial Corp. of Lake Forest, Ill., which has struck the first bank acquisition deal in its 12-year history, has others in its sights, according to its chief operating officer. Until now the $4.1 billion holding company has grown by starting subsidiary banks (it has ...
In Brief: Imaging Cuts Through Fog for Bremer.(Brief Article)
Aug 05, 2003 ... Branch image-capture technology has accelerated check clearing at Bremer Financial Corp. of St. Paul, easing some deadline pressure and improving performance in foggy weather, an executive says. And having completed a yearlong rollout in more than 100 Minnesota, Wisconsin, and ...
In Brief: First Financial Stops Security Leak.(Brief Article)
Aug 05, 2003 ... First Financial Credit Union of West Covina, Calif., has tightened its e-mail security by blocking employee messages that contain sensitive account information or excerpts from restricted documents. The blocking software, PortAuthority from Vidius Inc. of Beverly Hills, was ...
In Brief: iTech Using Web-Tailored Unisys Mainframe.(Brief Article)
Aug 05, 2003 ... A bank data processor in Montana may be the first user of a new Unisys Corp. mainframe computer designed for Web services and real-time data access. iTech Corp., the technology subsidiary of First Interstate BancSystem Inc. in Billings, Mont., put the ClearPath Plus Libra 185 computer into ...
InteliData Lowers Revenue Sights.
Aug 05, 2003; ... Though its sales have gained slightly, the Internet banking software vendor InteliData Technologies Corp. has scaled back its revenue forecast for the year, citing the economy and uncertainty about its agreement with Fidelity Information Services Inc. InteliData, of Reston, Va., ...
Deal-a-Year Pace Likely To Continue for Mellon Unit.
Aug 05, 2003; ... Mellon Financial Corp. hardly sounds done making acquisitions to expand its private wealth management unit. Craig R. Sutherland, national director for the Pittsburgh banking company's private wealth management group, said in an interview the day after Mellon announced it had ...
In Brief: BB&T Arm to Buy Cooper Love of Tenn.(Brief Article)
Aug 05, 2003 ... BB&T Insurance Services has agreed to buy the Nashville insurance agency Cooper, Love & Jackson Inc. The Raleigh unit of BB&T Corp. already owns the BB&T-Thornton & Harwell agency in nearby Brentwood, Tenn. Together the two agencies would have more than 80 employees. ...
In Brief: PMI Leads Group Buying GE Unit.(Brief Article)
Aug 05, 2003 ... General Electric Co. an-nounced Monday that it had agreed to sell the bond insurer Financial Guaranty Insurance Co. for $2.16 billion to a four-member consortium led by PMI Group Inc. Financial Guaranty is a New York company that provides financial guarantee policies for public ...
In Brief: Banknorth in Deal For Field & Quimby.(Brief Article)
Aug 05, 2003 ... Banknorth Group Inc. of Portland, Maine, is buying Field & Quimby Inc., a community insurance agency in Belfast, Maine. The deal was announced Thursday. Field & Quimby, primarily a personal property/casualty insurance agency, will become part of Banknorth Insurance ...