American Banker back issues from February 2004:
Will Chase, Bank One Echo MBNA?
Feb 02, 2004; ... MBNA Corp.'s decision to issue American Express cards raises all sorts of tantalizing questions about the future of the payment card business. One of the more interesting questions is whether the deal will influence the choices likely to be made this year by J.P. Morgan Chase & ...
Too Low or Just Right? A Guide To GSE Capital Levels, Issues.
Feb 02, 2004; ... Critics say that Fannie Mae and Freddie Mac hold too little capital, but the government-sponsored enterprises insist that they are among the nation's strongest companies. Who's right? To help readers navigate the debate, American Banker presents a questions-and-answer primer and ...
Investment Units Latest To Fall Under State Audit.
Feb 02, 2004; ... Wisconsin banks with out-of-state investment subsidiaries could face bigger tax bills in the coming months if state auditors determine that the units were created chiefly to avoid taxes. Diane L. Hardt, a tax administrator for the Wisconsin Department of Revenue, said it is ...
In Silicon Report, More Questions Than Clarity.
Feb 02, 2004; ... Four months ago Silicon Valley Bancshares told Wall Street its business outlook was improving, and its fourth-quarter earnings report Thursday appeared to deliver partly on that promise. But the results were choppy, and analysts were scrambling Friday to understand the Santa ...
Executive Changes.
Feb 02, 2004; ... MIDWEST RLI Corp. of Peoria, Ill., which offers specialty property and casualty coverage for niche markets through its subsidiaries, has promoted Piyush K. Singh to chief information officer. Mr. Singh had been its vice president of information technology since 2000 ....
WASHINGTON PEOPLE.
Feb 02, 2004; ... Hail and Farewell If you can judge a man's influence by the number and quality of people at his retirement party, then Kenneth Guenther, the outgoing president of the Independent Community Bankers of America, is one of the best-connected people in the financial services ...
Bank Atlantic, F.N.B. Spinoffs Go Over Well with Investors.
Feb 02, 2004; ... It has been a month since BankAtlantic Bancorp Inc. and F.N.B. Corp. completed spinoffs, and it appears the market is embracing the leaner and easier-to-grasp companies. Stock of F.N.B., which has moved back to Hermitage, Pa., from Naples, Fla., and the subsidiary it spun off, ...
In Brief: Franklin of Mich. Posts 4Q Profit.(Brief Article)
Feb 02, 2004; ... Franklin Bancorp Inc. of Southfield, Mich., said its fourth-quarter earnings rose 64% from the third quarter, to $701,813, versus a $616,000 loss in the fourth quarter of 2002. However, the $519 million-asset company's full-year profits fell 74%, to $1 million. (The 2002 ...
In Brief: Fitch Cuts Old National's Rating.(Brief Article)
Feb 02, 2004; ... Fitch Inc. has downgraded the long-term debt ratings for Old National Bancorp of Evansville, Ind., and its Old National Bank to BBB from BBB-plus. The reduction reflects Old National's "increased credit-risk profile and lower profitability levels" after its most recent earnings ...
President Post Filled at First Data Unit.(Brief Article)
Feb 02, 2004; ... First Data Corp. has appointed James L. Schoedinger president of its card issuing services business, a position that had been vacant for 11 months. Mr. Schoedinger, 45, left Transamerica Corp.'s Real Estate Information Services in Dallas to work at the Omaha unit of First Data, ...
Lincoln National CEO Gives Sales Credit to Control of Wholesaling.
Feb 02, 2004; ... Lincoln National Corp. pins part of its sales success last year to a move away from captive advisers and outside wholesaling to a greater focus on direct control of distribution through a variety of channels. Jon A. Boscia, the chairman and chief executive officer of the ...
Agency Outsourcer Cites Banks in '03 Sales Growth.
Feb 02, 2004; ... Answer Financial Inc. says its insurance agency outsourcing business has grown dramatically in the past year thanks in part to its bank clients. Steven J. Kroll, the senior vice president of marketing at the Los Angeles financial services company, said it has seen growth through ...
Deal Seen in 'Breakpoint' Probes.(Brief Article)
Feb 02, 2004; ... Six financial services companies, including UBS AG and Wachovia Corp., have reportedly agreed to settle Securities and Exchange Commission allegations that their brokers failed to give promised mutual fund discounts. A report Friday by Bloomberg News said the two banking ...
Banks Have a Prime Beef With FASB Hedging Plan.
Feb 02, 2004; ... Every two weeks for the past year an electronic reminder popped up on Robert Wilkins' computer -- "Address inappropriate application of G13." The Financial Accounting Standards Board's senior project manager has finally crossed that task off his to-do list, and bankers worry ...
GM Confirms Deal in Bias Suit.
Feb 02, 2004; ... General Motors Corp.'s financing arm confirmed to American Banker in e-mail Friday that it had reached a tentative settlement of a class action that alleged its auto-lending policies discriminated against African-Americans. At issue in the lawsuit are extra percentage points ...
Countrywide to 'Offshore' 250 Jobs to India.
Feb 02, 2004; ... Countrywide Financial Corp.'s chairman said it plans to open a call center in India that will save it about $35,000 per employee per year. Responding to a question Thursday at a Mortgage Bankers Association luncheon in New York, Angelo Mozilo said the Calabasas, Calif., company ...
E-Loan Regroups After Break-Even Fourth Quarter.
Feb 02, 2004; ... A fourth-quarter stumble as the refinancing mortgage business dried up has prompted E-Loan Inc. to oust its chief operating officer -- and a stock research firm to downgrade its shares to "sell." The online lender's net income dropped 96% from a year earlier, to $207,000, or ...
H&R Block Hires a Legal Chief.
Feb 02, 2004; ... H&R Block Inc., the tax preparation company that has been expanding its financial services activities, said Friday that it had hired a lawyer from Intuit Inc. to help coordinate and build that side of the business. Nicholas J. Spaeth will start today in the newly created ...
A Cloud Lifts as Regulators Free Capital One from Pact.
Feb 02, 2004; ... Capital One Financial Corp's announcement Thursday of the termination of its memorandum of understanding with regulators brought relief to analysts, who considered the 17-month agreement a lingering sensitivity for a company that had otherwise pulled through a high-risk market. ...
Correction.(Correction Notice)
Feb 02, 2004 ... In Friday's paper, the People column on page 2 was wrong in calling the New England Patriots the defending Super Bowl champions. An editing error was to ...
In Brief: Groups Appeal Maryland Court Decision.(Brief Article)
Feb 02, 2004; ... Five financial services trade groups said Friday that they had filed a brief with the Supreme Court urging it to reverse a Maryland court decision they claim could undermine preemption for federal thrifts. The brief, filed by America's Community Bankers and four state groups, ...
In Brief: Fed Creates Backup Bank Group.(Brief Article)
Feb 02, 2004; ... The Federal Reserve Board said Friday that it has established a private-sector working group to expand on a proposal for a backup clearing bank in the government securities market. The bank would have a limited charter and would be used if Bank of New York Co. Inc. or J.P ....
In Brief: JPM Chase Gets Final Approval for Thrift.(Brief Article)
Feb 02, 2004; ... The Federal Reserve Board approved a federal thrift charter for J.P. Morgan Chase & Co. on Friday. The Fed said both businesses and consumers would benefit from the thrift. Noting a protest by a community activist, the Fed said it had studied J.P. Morgan Chase's ...
In Brief: Wal-Mart Joins Fifth Third's EFT Network.(Brief Article)
Feb 02, 2004; ... Wal-Mart Stores Inc. has joined the Jeanie electronic funds transfer network owned by Fifth Third Bancorp's processing solutions unit. The Cleveland banking company, which announced Wal-Mart's sign-up Friday, says Jeanie is the sixth-largest EFT network in the United States, ...
Bank and Thrift Holding Companies with the Most Deposits: On Sept. 30, 2003. Dollars in thousands.(Illustration)
Feb 02, 2004 ... (part 1 of 2) Rank <Pre> 1Citigroup Inc. New York 2Bank of America Corp. Charlotte 3J.P. Morgan Chase & Co. New York 4Wells Fargo & Co. San Francisco 5Wachovia Corp. Charlotte 6Bank One Corp. Chicago 7...
Private Equity In Comeback At Big Banks.
Feb 03, 2004; ... Some of the nation's top 25 banking companies are reporting the first positive returns in private equity investing in almost three years thanks to a more favorable business environment. J.P. Morgan Chase & Co., Mellon Financial Corp., and Wells Fargo & Co. all report that ...
Future of 7(a) Lending: Policy, Politics, People: Borrowers scramble; White House looks to shift cost to lenders.
Feb 03, 2004; ... David Williams has conflicting emotions about the Small Business Administration. A $94,000 loan guarantee from the SBA, plus plenty of sweat equity, helped Mr. Williams open No Rulez Laundry in a Glen Arden, Md., shopping center three years ago. No Rulez has done ...
GSE Reform Emerges as Key Issue in Bush Budget.(government-sponsored enterprises)
Feb 03, 2004; ... The Bush administration on Monday stepped up its campaign to revamp the regulation of the housing government-sponsored enterprises, warning in its fiscal 2005 budget proposal of potentially dire consequences if reform is not completed soon. The budget plan said that the GSEs do ...
Inside the Proposal.
Feb 03, 2004 ... President Bush's budget contains many programs sought by the financial services industry, but the deficit makes it unlikely they will all ...
Bankers Offered Compromise on Basel II Details.
Feb 03, 2004; ... The Basel Committee on Banking Supervision has offered a compromise to bankers who said the proposed capital requirements for operational risk at subsidiaries would be too harsh. At issue is whether companies would have to earmark capital for each banking subsidiary or would be ...
Deficit Threatens To Kill Programs Industry Backs.
Feb 03, 2004; ... Contained in the 4-inch-thick, 2,064-page, $2.4 trillion federal budget request President Bush sent to Congress on Monday are tax breaks, savings initiatives, and lending programs the financial services industry favors. But looming over their prospects of becoming reality this ...
Purchase Is Identrus' Latest Move to Spur Adoption.(Identrus L.L.C. acquires eFinance Corp.)
Feb 03, 2004; ... Eight months after taking the helm of Identrus LLC, Karen J. Wendel has put her mark on the bank-owned identity-services provider by engineering its purchase of her former company. The acquisition of eFinance Corp., a provider of credit decisioning and risk management ...
Four Banks Agree to Use Viewpointe Image System.
Feb 03, 2004; ... Four major banks confirmed their intent last week to begin clearing checks within the next several months using digital images within a shared archive. J.P. Morgan Chase & Co., Bank of America Corp., U.S. Bancorp, and SunTrust Banks Inc. say they are on the fast track to install ...
Vanguard's New ETFs Give It Broader Bank Entree.(exchange-traded funds)
Feb 03, 2004; ... Vanguard has launched 14 exchange-traded funds in an attempt to capitalize on what it believes is a hot product, and the move also will add broker-dealers to its bank distribution channel. The nation's No. 2 mutual fund company has $20 billion of fund assets from bank sales, ...
In Brief: Profit Up 48%, to $69M, at T. Rowe Price.(Brief Article)
Feb 03, 2004 ... T. Rowe Price Group Inc. has reported that its profits rose 48% in the fourth quarter. The Baltimore asset management company said Friday that net income rose to $68.6 million, from $46.2 million the year earlier. Assets under management reached a record $190 billion at the end ...
In Brief: Fidelity Reopens a Value Fund to Investors.(Fidelity Investments, Value Strategies Fund)(Brief Article)
Feb 03, 2004 ... Fidelity Investments has announced the reopening of its Value Strategies Fund to investors in a bid to expand its line of value products. The fund had been closed to new shareholders since 1986, the company said Thursday. Harris Leviton, who has managed the portfolio since ...
In Brief: Principal Bank Offers Account for Students.(Brief Article)
Feb 03, 2004 ... Principal Bank, a member of the Principal Financial Group in Des Moines, announced the availability Monday of a special package account exclusively for full- and part-time high school and college students 14 and older. The package's features include low opening balance, no ...
In Brief: S&P Rates Lincoln's $200M of Notes A-.(Standard & Poor's Ratings Services assigned an A-minus senior debt rating to Lincoln National Corp.'s $200 million issue of 10-year senior unsecured notes)(Brief Article)
Feb 03, 2004 ... Standard & Poor's Ratings Services said it has assigned an A-minus senior debt rating to Lincoln National Corp.'s $200 million issue of 10-year senior unsecured notes due Feb. 15, 2014. The notes' proceeds will be used for paying down short-term debt and general corporate ...
In Brief: Travelers' Negative Watch; St. Paul Cut.(Travelers Insurance Group, St. Paul Cos., ratings)(Brief Article)
Feb 03, 2004 ... Fitch Ratings has put on rating watch negative the AA insurer financial strength ratings of the members of the Travelers Property Casualty Group and the A long-term-issuer and senior debt ratings of Travelers Insurance Group Holdings Corp. in view of Travelers' plan to be bought by The St ....
Diebold and NCR Benefiting From ATM Replacement Cycle.(automated teller machine)
Feb 03, 2004; ... The top two manufacturers of automated teller machines predict a good year for the industry, partly because it is time for banks to replace a number of their machines. Diebold Corp. and NCR Inc., which reported solid fourth-quarter results last week, say the ATM replacement ...
In Brief: UBS: Wamu May Leave Star Network.(Washington Mutual, UBS Investment)(Brief Article)
Feb 03, 2004; ... Washington Mutual Inc. could be the next large bank to defect from Concord EFS Inc.'s Star network, a UBS Investment Research analyst predicted in a research note Monday. The Seattle thrift could leave the electronic funds transfer network in a matter of weeks, Adam B. Frisch ...
In Brief: Charge Sends Equifax's Earnings Down.(Brief Article)
Feb 03, 2004; ... Equifax Inc. reported last week its fourth-quarter earnings fell 39.4% from a year earlier, to $31.3 million, or 23 cents a share. The results included a previously announced charge of 17 cents a share related to the Atlanta credit bureau's Direct Marketing Services unit, which ...
In Brief: New North America Chief for Gemplus.(Ernest Berger)(Brief Article)
Feb 03, 2004; ... The French chip card maker Gemplus International's new North American president says part of his job is to persuade U.S. credit card issuers that smart cards are a worthy investment. Ernest Berger, who was appointed last month, said the U.S. market for chip cards is foundering, ...
In Brief: American Financial Buying Boston Tower.(American Financial Realty Trust)(Brief Article)
Feb 03, 2004; ... American Financial Realty Trust said Monday it would buy the new State Street Financial Center in Boston for $705 million from the partnership that developed it. The 36-story, 1.05 million-square-foot office tower at One Lincoln Street is 100% leased to State Street Corp ....
In Brief: Pa. Exec Heads Realty Trade Group.(Gerard F. Griesser elected chairman of the Real Estate Services Providers Council)(Brief Article)
Feb 03, 2004; ... The Real Estate Services Providers Council, which promotes the interests of companies that offer more than one real estate-related service, has a new chairman He is Gerard F. Griesser, the president of Trident Group and an owner of Prudential Fox & Roach Realtors, both in Devon, ...
In Brief: New Production EVP For Central Pacific.(Central Pacific Mortgage hired Kevin Sexton as its executive vice president of production)(Brief Article)
Feb 03, 2004; ... Central Pacific Mortgage of Folsom, Calif., said Monday it has hired Kevin Sexton as its executive vice president of production. In addition to production, Mr. Sexton will oversee sales and marketing for Central Pacific. ...
Corrections.(Correction Notice)
Feb 03, 2004 ... In Thursday's paper, a page 20 story misstated one of Joseph R. Ficalora's titles at New York Community Bancorp. Mr. Ficalora, its president, is also its chief executive officer. In Friday's paper, a page 1 story misidentified a Florida company that an analyst said might be ...
In Brief: Visa, MC Rules Preserved Pending Appeal.(MasterCard)(Brief Article)
Feb 03, 2004; ... The U.S. Court of Appeals for the Second Circuit has given Visa U.S.A. and MasterCard International a stay on the decision that struck down rules barring member banks from issuing American Express or Discover cards. The New York court said in an order Monday that Visa and ...
In Brief: Panel OKs Bank-Owned Insurance Plan.(Brief Article)
Feb 03, 2004; ... The Senate Finance Committee unanimously approved a proposal Monday that would allow benefits paid by bank- and corporate-owned life insurance policies to remain tax-free under certain circumstances. The proposal, included in a bill on changing the laws governing pensions, would ...
Skeptics of Fleet-B of A Now Singing Another Tune.(FleetBoston Financial/Bank of America merger)
Feb 03, 2004; ... Analysts initially critical its agreement to buy FleetBoston Financial Corp. have steadily been raising their earnings estimates on of Bank of America Corp., as Michael Mayo of Prudential Equity Group did Monday -- again. Mr. Mayo, who also increased his 12 month-price target by ...
Lasting Shift? Bank Advisers Captured Staff, and Share.
Feb 04, 2004; ... Banks have been slowly gaining market share by hiring financial advisers and brokers away from the large wire houses and regional investment firms, and analysts and executives said that trend will continue even as the bigger firms rebound from the bear market. In the past three ...
Deposit Boom Draws Buyers To New Jersey.
Feb 04, 2004; ... Northern New Jersey has become a hot spot for deals as rivals swarm the deposit-rich market, valued for its affluent demographic and its proximity to New York City. Over the last three years 17 merger and acquisition deals have been announced involving banks with branches in the ...
New Details On First Data's Concord Plans.
Feb 04, 2004; ... First Data Corp.'s top executive plans to set up a corporate division to combine Concord EFS' debit businesses with First Data's merchant processing operations -- and use the combined organizational might to woo banks that recently left Concord for Visa. In a conference call ...
Scotland's Royal Deals Self into U.S. Card Market.(Royal Bank of Scotland Group PLC to acquire credit card business from People's Bank)
Feb 04, 2004; ... Following through on its designs in the U.S. consumer finance market, Royal Bank of Scotland Group PLC announced Tuesday that it had agreed to buy the $2.3 billion credit card business of People's Bank of Bridgeport, Conn. Royal is Europe's second-largest bank and the United ...
Fed: Commercial Loan Demand Finally on Rise.
Feb 04, 2004; ... Domestic lenders are reporting stronger business loan demand, snapping three straight years of declines, according to a Federal Reserve Board survey released Tuesday. "According to domestic respondents, the most important reasons for the strengthening of loan demand over the ...
EXECUTIVE CHANGES.(Wachovia Wealth Management has named Jeffrey C. Hartman the director for its mid-Atlantic region)
Feb 04, 2004; ... SOUTHEAST Wachovia Wealth Management, the Winston-Salem, N.C., wealth management division of Charlotte's Wachovia Corp., has named Jeffrey C. Hartman the director for its mid-Atlantic region. He will be based in Richmond, Va., and oversee more than 250 employees ...
OFHEO Plans Reforms, Wins Ruling.(Brief Article)
Feb 04, 2004; ... Fannie Mae chairman and chief executive officer Franklin Raines would have to give up one of his titles as part of several reforms that the Office of Federal Housing Enterprise Oversight is poised to propose. Separately, a federal judge has ordered Leland Brendsel, Freddie Mac's ...
Timing, Terms Are Gray Areas In Fed Disclosure Proposal.
Feb 04, 2004; ... Banks, credit unions, and trade groups are questioning a proposal from the Federal Reserve Board that would overhaul disclosures required by several consumer protection regulations. The Fed's revision, first proposed in November, would create a standard for the disclosures ...
Tax-Law Changes Can Bring Some Good Dividends.
Feb 04, 2004; ... The latest changes in the tax laws, which include lower maximum rates on all incomes and sharply lower tax levies on dividends, should offer banks new revenue opportunities and ways to serve their customers. It can be debated how much the new rates will help solve the economy's ...
Betting on Tenn. Lottery Link.
Feb 04, 2004; ... Like many of Tennessee's residents, First Bank in Lexington is hoping to cash in on the state's new lottery. The $1.1 billion-asset bank is promoting its FirstLotteryaccount to convenience stores, gas stations, and other retailers that seek to sell lottery tickets and, under ...
In Brief: BB&T Completes McGriff Deal.(Brief Article)
Feb 04, 2004 ... BB&T Insurance Services has completed its purchase of the Alabama insurance agency McGriff, Seibels & Williams Inc. for $350 million in cash and stock. The deal was announced in November and closed Monday. It also allows for a $102 million cash payment to the Birmingham agency's ...
In Brief: Bank of N.Y. Buys Thomson Unit.(Thomson Institutional Services Inc.)
Feb 04, 2004 ... Bank of New York Co. Inc. announced Tuesday that it had bought Thomson Institutional Services Inc., a research and commission management services firm. The third-party independent firm is a unit of Thomson Corp.'s Thomson Financial. Other Thomson Corp. units include Thomson ...
In Brief: 9/11-Related MBS Downgraded.(Brief Article)
Feb 04, 2004; ... Moody's Investors Service on Tuesday downgraded $383 million of securities backed by the mortgage on 7 World Trade Center, an office tower destroyed along with the rest of the complex on 9/11. In a press release the rating agency said the bonds, issued by Bank of America Corp., ...
In Brief: Conseco Unit Builds Its Origination Staff.(40/86 Mortgage Capital Inc. plans to ramp up its commercial real estate loan production)
Feb 04, 2004; ... 40|86 Mortgage Capital Inc. of Carmel, Ind., plans to ramp up its commercial real estate loan production. In an interview Tuesday, Wayne R. Nelis, the vice president who runs the Conseco Inc. unit, said it had expanded its origination staff from one person to three. ...
In Brief: Fitch: We Can Live With Cleveland Law.(Brief Article)
Feb 04, 2004; ... Fitch Inc. said Monday that it will continue to rate bonds backed by home loans originated in Cleveland, despite an ordinance there against predatory lending. Officials of the New York rating agency explained in a press statement that the ordinance holds assignees liable for ...