American Banker back issues from July 2004:
For BSB, Waiting Goes On.(Partners Trust Financial Group Inc. has difficulty selling enough stock to finance purchase of BSB Bancorporation Inc.)
Jul 01, 2004; ... Could BSB Bancorp be left at the altar for the second time in less than four years? Analysts who follow the $2.2 billion-asset Binghamton, N.Y., company are guessing no, but there is no denying that Partners Trust Financial Group Inc. in Utica is having trouble selling enough ...
Numbers But No Clarity Yet On Freddie.(Federal Home Loan Mortgage Corp.)
Jul 01, 2004; ... For all the months and the tens of millions of dollars Freddie Mac has spent working its way back to financial clarity, final answers remain frustratingly elusive -- for both outsiders and the new executive team. The long-awaited release Wednesday of last year's earnings did ...
Most Trends Augur Solid 2Q Gains for Regionals.(bank earnings)(Industry Overview)
Jul 01, 2004; ... Stable net interest margins, inklings of life in commercial lending, and strong fee income from mortgage operations are expected to result in mid-to-high single-digit growth in second-quarter earnings per share for regional banks. Commercial lending remains the biggest question ...
Downgrades, More Selling for Commerce.(CommerceBancorp)
Jul 01, 2004; ... Shares of Commerce Bancorp Inc. were battered Wednesday, a day after two officers were indicted for allegedly arranging favorable loans for a former Philadelphia official in exchange for a piece of the city's business. Three analysts downgraded the Cherry Hill, N.J., company on ...
EXECUTIVE CHANGES.
Jul 01, 2004; ... NEW ENGLAND The Federal Home Loan Bank of Boston has hired William L. Oakley as its chief information officer and a senior vice president. Mr. Oakley was the chief technology officer and a vice president at John Hancock Financial Services Inc. (Manulife Financial ...
Groups Pushing for Fax Ad Exemption.(financial services trade groups back legislation on advertisements by fax)
Jul 01, 2004; ... Financial services trade groups are backing legislation to undo a federal requirement that businesses get written consent before sending their customers unsolicited advertisements by fax. The House Energy and Commerce Committee approved the Junk Fax Prevention Act of 2004 in a ...
12 Guidelines for Examiners Put Emphasis on Cooperation.(state and federal bank examiners)
Jul 01, 2004; ... State and federal bank regulators on Wednesday recommended ways their examiners can improve cooperation before, during, and after exams to avoid miscommunications and create a "seamless supervisory process." The Federal Reserve Board, the Federal Deposit Insurance Corp., and ...
In Brief: OCC: Insurer Did Not Commit Illegal Tying.(Office of the Comptroller of the Currency reports results of investigation)(Brief Article)
Jul 01, 2004; ... The Office of the Comptroller of the Currency has released an interpretive letter determining that a product offering from a national bank's insurance affiliate did not violate tying rules. The decision, in a letter dated March 11 and released this week, came in response to a ...
In Brief: Fincen Hires EDS to Build BSA Web Site.(Financial Crimes Enforcement Network, Electronic Data Systems Corp., Bank Secrecy Act Web site)(Brief Article)
Jul 01, 2004; ... The Financial Crimes Enforcement Network has awarded Electronic Data Systems Corp. an $18.5 million, five-year contract to develop a Web site for law enforcement officials and financial regulators to view Bank Secrecy Act data. The goal of the site, to be called BSA Direct, is ...
In Brief: Record-Low Rates for Student Loans.(Federal Family Education Loan Program )(Brief Article)
Jul 01, 2004; ... Interest rates on Stafford or Plus loans will drop to a record low today, saving borrowers millions in the coming academic year. Stafford and Plus loans carry a variable interest rate, reset each July 1, that is based the last auction of the 91-day Treasury bills in May, the ...
In Brief: Flood Insurance Program Reauthorized.(Federal Emergency Management Agency)(Brief Article)
Jul 01, 2004; ... President Bush has reauthorized the Federal Emergency Management Agency's National Flood Insurance Program through 2008. The 36-year-old program, which was to expire Wednesday, was extended when the President signed the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of ...
EXECUTIVE CHANGES.
Jul 01, 2004; ... MIDWEST First Bancorp of Indiana Inc. of Evansville has named Michael H. Head the president and chief executive officer of the company and the CEO of its $236 million-asset First Federal Savings Bank. He succeeded Harold Duncan, who has retired. Mr. Head ...
In Brief: Visa International Incorporating E.U. Unit.(European unit)(Brief Article)
Jul 01, 2004 ... Visa International expects to incorporate its European unit today. A report on the restructuring appeared in Wednesday's Financial Times, and the Foster City, Calif., payment card company confirmed that it had been in the works for several years. The change will make ...
In Brief: DaimlerChrysler Sells a Portfolio to B of A.(DaimlerChrysler Services North America LLC sells Visa-branded card portfolio to Bank of America Corp.)(Brief Article)
Jul 01, 2004; ... DaimlerChrysler Services North America LLC announced Tuesday that it had sold its Visa-branded credit card portfolio to Bank of America Corp.. The deal closed June 25; the price was not disclosed. The portfolio consists of 160,000 Rewards Visa card accounts, which ...
In Brief: Fed Asked to Apply Rule to Stored-Value.(Consumers Union Inc. asks Federal Reserve Board to apply regulation to stored-value cards)(Brief Article)
Jul 01, 2004; ... Consumers Union Inc. has asked Federal Reserve Chairman Alan Greenspan to apply Regulation E, which implements the Electronic Funds Transfer Act, to stored-value cards. The Yonkers, N.Y., publisher of Consumer Reports said the regulation should cover products such as payroll, ...
In Brief: Key, Coast Sign an ATM Distribution Deal.(KeyCorp, Coast ATM LLC to install automated teller machines in casinos, shopping malls, office buildings)(Brief Article)
Jul 01, 2004; ... KeyCorp of Cleveland has signed an agreement with Coast ATM LLC to put Key-branded automated teller machines in casinos, shopping malls, and office buildings over the next two years. Installation of the 500 Diebold Inc. nondeposit-taking machines will begin this summer, Howard ...
Rebound in Private Label Pitting Banks Against ADS.(private-label credit cards)(Alliance Data Systems Corp.)(Industry Overview)
Jul 01, 2004; ... The persistence of private-label credit cards -- with their generally higher rates, lower limits, and often more restricted uses -- may appear puzzling when nearly every consumer can sign up for a Visa or MasterCard. But interest in store cards has flared in recent years, even ...
If P/C Insurers at Peak, Banks May See Competition Intensify.(property and casualty insurers)(Industry Overview)
Jul 01, 2004; ... Property and casualty insurers reported significant growth in the first quarter, but some executives fear the industry has reached an earnings peak, raising questions about the potential for further growth. The industry experienced a "blow-out quarter," said Robert P. Hartwig, a ...
In Brief: First Republic in $8M Deal for Asset Firm.(First Republic Bank plans to buy Bay Isle Private Client Asset Management from Janus Capital Group Inc.)(Brief Article)
Jul 01, 2004 ... First Republic Bank announced Wednesday that it plans to buy Bay Isle Private Client Asset Management from Janus Capital Group Inc. for $8 million in a deal expected to close in the third quarter. Bay Isle was started in 1986 and manages $600 million of assets for high-net-worth ...
In Brief: Hudson Valley to Buy N.Y. Money Manager.(Hudson Valley Bank, A.R. Schmeidler and Company Inc.)(Brief Article)
Jul 01, 2004 ... Hudson Valley Bank said Wednesday it has a definitive agreement to buy a New York money management company. The Yonkers, N.Y., bank is to buy A.R. Schmeidler & Co. Inc., which has $400 million of assets under management. William E. Griffin, Hudson Valley's chairman, ...
In Brief: MFS Counts $1B-Plus in Its 529 Accounts.(MFS Investment Management)(Brief Article)
Jul 01, 2004 ... MFS Investment Management said Wednesday that total assets invested in its 529 college savings plans have surpassed $1 billion. MFS manages a broker-sold 529 plan option for the state of Oregon and participates in 10 other state-sponsored 529 plans. ...
In Brief: NorthShore Buys Control of Circle Trust.(NorthShore Asset Management, Circle Trust Co.)(Brief Article)
Jul 01, 2004 ... NorthShore Asset Management, a private equity and hedge fund manager in New York, announced Wednesday that it has bought a majority interest in a Stamford, Conn., investment management company. NorthShore said it bought the stake in Circle Trust Co., which supplies investment ...
In Brief: Fidelity Unit Adds 2 to Clearing Sales Team.(Fidelity Investments' clearing unit National Financial)(Brief Article)
Jul 01, 2004 ... Fidelity Investments' clearing arm has announced a hiring and a transfer to expand its correspondent clearing sales team. National Financial said on Tuesday that it has hired David R. Wisneski and transferred Joseph Foley to be vice presidents, giving it 58 professionals to ...
In Brief: Mutual Fund Assets Rose 0.4% in May.(Brief Article)
Jul 01, 2004 ... Assets held in mutual funds grew 0.4% in May, according to data from the Investment Company Institute. The combined assets of the nation's mutual funds increased $32.8 billion, to $7.505 trillion, the institute said on Tuesday. Equity, bond, and hybrid funds collectively had ...
Community Banks with Largest Credit Card Portfolios: On March 31, 2004. Dollars in thousands.*.(Illustration)
Jul 01, 2004 ... (part 1 of 2) <Pre> Buyer 31-Mar 1Amalgamated Bank Chicago $75,465 2Pulaski Bank and Trust Co. Little Rock 41,330 3First National Bank Fort Pierre, ...
Community Banks with Largest Portfolios of Loans to Individuals: On March 31, 2004. Dollars in thousands*.(Illustration)
Jul 01, 2004 ... (part 1 of 2) <Pre> 1 Independent Bank Memphis 2 Crescent Bank and Trust Co. New Orleans 3 Harris Bank Naperville Ill. 4 Farmers National Bank of Canfield Ohio 5 Community Bank Northern Virginia Sterling 6 First Fidelity Bank ...
Change Looming Larger on Chase's Technology Horizon.(J.P. Morgan Chase and Co.)
Jul 01, 2004; ... In the matter of the J.P. Morgan Chase/Bank One Corp. merger -- expected to close today -- and the fate of Chase's big outsourcing deal with International Business Machines Corp., a trickle of indicators has turned to a flood. First there was the decision to give the chief ...
Banks Gaining Ground in Retail Web Site Rankings.(bank Web sites ranking among top most visited sites according to report from comScore Media Metrix)(Industry Overview)
Jul 01, 2004; ... One measure of the growing popularity of online banking and bill payment is that large banks' Web sites are cropping up more frequently on comScore Media Metrix's list of the most-visited retail sites. Bank of America Corp.'s site has been on the list's top 50 since February ....
In Brief: FHFB Scolds Chicago Home Loan Bank.(Federal Housing Finance Board, Federal Home Loan Bank of Chicago)(Brief Article)
Jul 01, 2004; ... The Federal Housing Finance Board imposed a written agreement on the Federal Home Loan Bank of Chicago on Wednesday in which it criticized the government-sponsored enterprise's risk management, internal audit, capital management, and accounting and financial record keeping practices. ...
In Brief: JPM Chase May Ape Wells' M&A Strategy.(J.P. Morgan Chase and Co., Wells Fargo and Co., merger and acquisition strategies)(Brief Article)
Jul 01, 2004; ... J.P. Morgan Chase & Co. may adopt Wells Fargo & Co.'s strategy of expansion through small bank acquisitions. Hal Pote, who was JPMorgan Chase's head of branch banking, has decided to stay on after today's acquisition of Bank One Corp. to be the vice chairman of retail financial ...
In Brief: Monmouth, Allaire of N.J. to Combine.(Monmouth Community Bancorp to merge with Allaire Community Bank, New Jersey)(Brief Article)
Jul 01, 2004; ... Two New Jersey community banks have agreed to combine in a merger-of-equals deal that would give the new company the eighth-largest share of the deposit market in Monmouth County. The deal is scheduled to close this year. The $237 million-asset Monmouth Community Bancorp would ...
Most Banks Seen Ready For Long-Expected Rise.(rise in interest rates)(Industry Overview)
Jul 01, 2004; ... Few in financial services should have been surprised when the Federal Reserve Board raised rates Wednesday for the first time in four years -- least of all banks. "One of the great virtues of the Fed's effort to become more transparent had been to prepare the industry for ...
Revamping Criimi Eyes Role as Lender.(CRIIMI MAE Inc. focuses commercial mortgages)
Jul 02, 2004; ... Three years after emerging from bankruptcy protection, Criimi Mae Inc. is angling to again be a serious player in commercial mortgages. The company, which was driven into bankruptcy by the global debt crisis of 1998, says it has finished restructuring its balance sheet and plans ...
State Street Pledges Stability.(State Street Corp.)
Jul 02, 2004; ... An abrupt change of leadership at State Street Corp. will not lead to any abrupt changes in direction for the Boston processing and asset management specialist, its new chief executive said Thursday. David A. Spina, State Street's chairman since 2001 and its CEO since 2000, ...
Is Chicago Order Sign of Activist FHFB?(Federal Housing Finance Board's action against Home Loan Bank of Chicago)
Jul 02, 2004; ... The Federal Housing Finance Board's crackdown on the Home Loan Bank of Chicago, its second tough action this month, has some industry officials wondering if the board will keep flexing its muscle under Chairman Alicia Castaneda. Ms. Castaneda, on the job just two months, drew a ...
U.S. Court: FCRA Doesn't Trump Calif. Privacy Law.(District Court for the Eastern District of California rules that Fair Credit Reporting Act does not preempt state law)
Jul 02, 2004; ... A new California law restricting how banks use customer information took effect Thursday after a federal court in Sacramento shocked the industry by rejecting a lawsuit to block it. "We're very surprised," said Joe Belew, the president of the Consumer Bankers Association, one of ...
Review Yields Restructuring.
Jul 02, 2004 ... New York Community said it sold $5 billion in securities to deleverage, a move that cost it 35 cents a share in profits. Left unanswered: Is a sale still ...
PEOPLE.
Jul 02, 2004; ... Haves and Have-Nots SNL Financial has named Robert Allbritton of the embattled Riggs National Corp. the "most overpaid" chief executive among his peers. Mr. Allbritton's 2003 pay package of $2.1 million seems modest compared with that of the CEOs at some larger ...
Key Says It Has Profitable Formula for Unbanking.(KeyCorp.)
Jul 02, 2004; ... KeyCorp, which has branches across 16 states, estimates that 680,000 of the households in its markets do not have bank accounts. Over the past several years the $84 billion-asset Cleveland company's KeyBank has devoted considerable time and energy to developing products and ...
F.N.B. Spinoff Has 2d Fla. Deal.(First National Bankshares of Florida Inc. plans acquisition of First Bradenton Bank)(Brief Article)
Jul 02, 2004; ... First National Bankshares of Florida Inc. plans to acquire the $61 million-asset First Bradenton Bank for $8.3 million. The deal, announced Wednesday, would give First National, of Naples, its first branch in Manatee County, south of Tampa. This is the second deal the ...
In Brief: MC Reports Growth in Maestro.(MasterCard International's debit cards)(Brief Article)
Jul 02, 2004; ... MasterCard International said the number of Maestro PIN debit cards in use worldwide in the first quarter grew 12.5% from a year earlier, to more than 524 million. The increase was caused primarily by the continued conversion of two brands -- Switch in the United Kingdom and ...
In Brief: E-Trade Closes ATM Sale.(E-Trade Financial Corp. sells automated teller machines to Cadtronics LP)(Brief Article)
Jul 02, 2004 ... E-Trade Financial Corp. has sold its automated teller machines to Cardtronics LP. The New York online banking and brokerage company said Thursday that it received $106 million of cash from the transaction and expects to recognize a pretax gain of $55 million. The ...
Web Tax Payment Firm: Check Option Lags Cards.(Official Payments Corp. offers online check payment service)
Jul 02, 2004; ... Official Payments Corp., the largest of three companies that facilitate online credit card payments of taxes and government fees, says its electronic check option has been a hit, but is not immediately as popular as the card option. The e-check option, which Official Payments ...
In Brief: Visa Reports Rise In Internet Spending.(Brief Article)
Jul 02, 2004; ... In the first quarter $22.3 billion was spent on Internet credit and debit card spending in the United States, Visa U.S.A. reported. The San Francisco company said in a press release Tuesday that online spending in the first five months of the year rose 59% from the same period ...
In Brief: TNB to Issue Cards For 4 Credit Unions.(TNB Card Services)(Brief Article)
Jul 02, 2004; ... TNB Card Services, a credit and debit card processor and issuer for credit unions, has signed four agent bank deals. The Dallas company an-nounced Monday that it will issue cards for OCHA Credit Union in Orange, Calif.; A/C Credit Union in Bath, Ohio; Park City Credit Union in ...
In Brief: Certegy Expands Contract with Saks.(Certegy Inc., Saks Inc.)(Brief Article)
Jul 02, 2004; ... Certegy Inc. has renewed and expanded its relationship with Saks Inc. The Alpharetta, Ga., processor announced Wednesday that it had renewed a contract to provide check authorization to Saks Department Store Group. The contract covers the retailer's 241 department stores doing ...
In Brief: Report: Rewards In Majority of Offers.(credit card industry, offers for reward and nonreward products)(Brief Article)(Industry Overview)
Jul 02, 2004; ... Credit card issuers mailed out more offers for reward than nonreward products in April for the fifth consecutive month, according to a Chicago market research firm. Comperemedia, a unit of Mintel International Group Inc. of London, reported Tuesday that 55% of the 325 million ...
Nationwide Taps New Bank Chief.(David L. Giertz, Nationwide Financial Institution Distributors Agency Inc.)
Jul 02, 2004; ... Nationwide Financial Services Inc. has shuffled the leadership of its bank distribution arm, naming David L. Giertz, formerly a regional vice president in its bank distribution channel, to head it. Mr. Giertz succeeds Matt A. Riebel as head of Nationwide Financial Institution ...
In Brief: Goldman Sachs to Pay $2M in IPO Probe.(Goldman Sachs Group Inc. pays to settle investigation into dealings in initial public offerings)(Brief Article)
Jul 02, 2004 ... Goldman Sachs Group Inc. has agreed to pay $2 million to settle a claim of improper trading, the Securities and Exchange Commission said Thursday. The settlement would close the SEC's investigation of allegations that during 1999 and 2000 the New York securities company gave ...
In Brief: Janus Replaces Chief of Worldwide Fund.(Jason Yee, Janus Capital Group Inc.)(Brief Article)
Jul 02, 2004 ... Janus Capital Group Inc. announced Thursday that it has named Jason Yee manager of its Janus Worldwide Fund. Mr. Yee, who managed the Janus Global Opportunities Fund, succeeds portfolio manager Laurence Chang, who is leaving the company, Janus said. The worldwide portfolio is a ...
In Brief: Wachovia Trust Unit Hires Sales Executive.(J.M. Cunniff Jr.)(Brief Article)
Jul 02, 2004 ... Wachovia Corp.'s corporate and institutional trust division said Thursday that it has hired J.M. "Joe" Cunniff Jr. to be a business development officer in its structured finance trust services group. Mr. Cunniff is to cover East Coast trustee sales for asset-backed securities, ...
In Brief: Northern Trust in LSV Fund Service Deal.(LSV Asset Management)(Brief Article)
Jul 02, 2004 ... Northern Trust Corp. was chosen Thursday to supply trust and limited partnership services to LSV Asset Management. Northern Trust is to serve the Chicago asset manager's newly launched LSV International Value Equity Trust and LSV International Value Equity Fund. In ...
Debate: Is More B-Piece Buyers Better?(commercial mortgage securitization market)(Industry Overview)
Jul 02, 2004; ... For years, the subordinated B-pieces of commercial mortgage securitizations were the domain of what conduits called "the cartel" -- GMAC Commercial Mortgage Corp., LNR Property Corp., Allied Capital Corp., and ARCap REIT Inc. These investors, along with the rating agencies, act ...
PIPELINE.
Jul 02, 2004; ... Realtor to Banker Bank of America Corp.'s new national homeownership services executive said his goal is to create more one-stop shopping opportunities on real estate transactions. Consumers want a simpler way "for getting through what is a clumsy process at times," ...
Help! It's Too Difficult to Apply For Deposit Accounts Online.(Product/Service Evaluation)
Jul 02, 2004; ... To check on the quality of banks' online deposit application processes, we recently opened 40 checking and saving accounts at the top 25 deposit banks. Our experiences were discouraging. Some, like NetBank, have redesigned their application process, and Wells Fargo and others ...
Have Large Corporate Lenders Learned From the Last Cycle?(Industry Overview)
Jul 02, 2004; ... As North American banks emerge from one of the most difficult credit cycles in recent memory, it is worth asking whether anything has truly changed with respect to how banks price large corporate credit and whether market participants can make credit work for them in a broader wholesale ...
Let Our Allies Help Fight Laundering.
Jul 02, 2004; ... Though we are allies on the battlefield, our partnership with the United Kingdom comes up short in our efforts to disrupt the worldwide networks financing terrorism. This is a result of the way the rules are crafted under the Patriot Act, which do not allow U.S. financial ...
To Build an MBS Market, Start With Housing Infrastructure.(mortgage backed securities in developing countries)
Jul 02, 2004; ... Developing countries realize that residential housing can be an engine of capital accumulation that helps build the middle class. Housing requires money from banks for mortgages, and banks in developing countries, with limited access to foreign financing, often do not have the ...
The Clearing House Gets a Simpler Structure.(The Clearing House Payments Company LLC)
Jul 02, 2004; ... By reorganizing under two limited-liability corporations, the family of payment processing and settlement companies known as The Clearing House say they have accomplished two chief goals: making life easier for the banks that own them, and strengthening their role in influencing payments ...
Correction.(Correction Notice)
Jul 02, 2004 ... In the June 22 Community Banking special report, "Thin-Client Strategy Fuels Ky. Bank's Growth" on page 9 identified Jim Brockett as the president and chief operating officer of Brintech Inc. Mr. Brockett is no ...
Some Big Deals Get Done, Some Big Names Are Gone.(bank mergers)
Jul 02, 2004; ... Three of the country's top 50 banking companies and one of the top 25 vanished Thursday with the clinching of three mergers. J.P. Morgan Chase & Co. closed its $58 billion acquisition of Bank One Corp., Regions Financial Corp. merged with Union Planters Corp. in a $6 billion ...
In Brief: OCC Warns National Banks About Options.(Office of the Comptroller of the Currency)(Brief Article)
Jul 02, 2004; ... The Office of the Comptroller of the Currency warned national banks about the risks posed by embedded options such as the right to prepay a mortgage. In a bulletin to banks Thursday, the OCC said capital levels could be threatened at some banks that loaded up on mortgages in ...
In Brief: JPM Says Snafu Was Not Deal-Related.(brief computer failure at J.P. Morgan Chase and Co.)(Brief Article)
Jul 02, 2004; ... On J.P. Morgan Chase & Co.'s first morning as the owner of Bank One Corp. its treasury management services were briefly shut down because of a computer failure. A JPM Chase spokesman said that the glitch had no connection to Thursday's completion of the Bank One deal, and that ...
In Brief: Profit, Cards in Circulation Rose in '03.(credit card banks report rise in pretax earnings)(Brief Article)
Jul 02, 2004; ... Large credit card banks reported that pretax net earnings rose 11.6% last year -- the fourth consecutive annual increase. Profits hit 3.66% of outstanding balances, versus 3.28% in 2002, the Federal Reserve Board said Thursday. According to the Fed's 14th annual ...
N.Y. Community Sells Assets, Not Self.(New York Community Bancorp)
Jul 02, 2004; ... New York Community Bancorp sold $5 billion of held-for-sale securities in the second quarter, resulting in a $95 million charge for the period. The sale will slice 35 cents off reported earnings per share, with the expected range now 15 cents to 16 cents a share. New York ...