American Banker back issues from April 2006:
'Adoptions': Pros and Cons Of a Fund Deal.
Apr 03, 2006; ... The sale of proprietary fund families by banks seeking to avoid rising regulatory costs and overcome distribution limitations is a well-established trend. Among buyers, differing tactics have emerged. Phoenix Cos. Inc., for example, has used a technique known as fund "adoption." ...
ISO Issue Mars Global Payments 3Q.(Global Payments Inc.)(independent sales organization issue)
Apr 03, 2006; ... Global Payments Inc.'s report on Friday of strong fiscal third-quarter profit gains was marred by news that it faced millions of dollars in possible exposure over an incident that had led it to cut off service to a large online merchant. The merchant, an online payment system ...
Privacy Notice Revisions Get Mixed Reviews.(bank privacy disclosure legislation)
Apr 03, 2006; ... WASHINGTON -- A bank privacy disclosure model federal regulators unveiled Friday was met with a decidedly split response, with some industry officials welcoming it as long overdue and others fearing it could add more burden and cost on banks. The regulators said the notice was ...
Restatement Done, SVB Sets Sights on Growth.(SVB Financial Group)
Apr 03, 2006; ... Jack Jenkins-Stark, SVB Financial Group's chief financial officer, is sounding upbeat these days. Following a Herculean earnings restatement late last year over how it accounted for warrants that caused the company to file its 10-K late, Mr. Jenkins-Stark says he is looking ...
In Brief: R&G Sells $150M of Preferred Shares.(Brief article)
Apr 03, 2006; ... R&G Financial Corp. of San Juan, Puerto Rico, said it sold $150 million of preferred stock in a private placement through its mainland subsidiary, R&G Acquisition Holdings Corp. According to placement agent, Keefe, Bruyette & Woods Inc., the securities offering was the first by ...
In Brief: First Banks Buys an Insurance Agency.(First Banks Inc., Adrian N. Baker and Co.)(Brief article)
Apr 03, 2006; ... First Banks Inc. in St. Louis said Friday that it had bought the Clayton, Mo., insurance agency Adrian N. Baker & Co. The deal, First Banks' first for an agency, complements its agreement in August to offer its customers a multicarrier insurance platform through Answer Financial ...
Expansion Set For Early-Access Paycheck Service.(American Bank FSB, Bethesda, Maryland)
Apr 03, 2006; ... When American Bank FSB in Bethesda, Md., opened the first of two in-store branches in outlets of the Super Fresh grocery chain in 2003, bank officials started brainstorming ideas to attract grocery store employees to the bank. They came up with "guaranteed checking," which lets ...
N.J. Trade Groups' Merger Negotiations Break Down.(New Jersey Bankers Association, New Jersey League of Community Bankers)
Apr 03, 2006; ... A merger between New Jersey's two banking trade groups that seemed all but assured late last year has been called off, and no new discussions are scheduled. Representatives from the New Jersey Bankers Association and the New Jersey League of Community Bankers said this week that ...
Washington People.
Apr 03, 2006; ... AFL-CIOops Ever send a private e-mail only to discover it accidentally went to the whole office? Now imagine that e-mail posted online where everyone can see it. That was the situation faced last week by AFL-CIO associate general counsel Damon Silvers, ...
TRM Pins Loss on Integration Problems, Canceled U.K. Deal.(TRM Corp.)
Apr 03, 2006; ... TRM Corp. blamed its fourth-quarter loss on problems with integrating the automated teller machines it bought last year from eFunds Corp., as well as a U.K. deal that fell through. The Portland, Ore., deployer of merchant ATMs said last week that it had canceled plans to acquire ...
Mellon-U.S. Trust Deal 1st Move in Kelly's Vow to Buy.(Chairman and Chief Executive Robert Kelly, Mellon Financial Corp.)
Apr 03, 2006; ... Mellon Financial Corp. says its purchase Friday of U.S. Trust's planned-giving services group makes it the largest provider of charitable giving services in the country, and analysts say this could be the first of many deals under the Pittsburgh company's new leadership. ...
Wall St. Forecast: Another Bumper Crop of Buybacks.(Industry overview)
Apr 03, 2006; ... With plenty of money to spend but few compelling ways to spend it, banking companies have been giving mounds of capital back to shareholders through cash dividends and share repurchases. Last year the industry paid $73 billion of cash dividends, according to the Federal Deposit ...
Income Drop, More Delays Add to Woes at Freddie.
Apr 03, 2006; ... Freddie Mac's "market update" Friday hit many of the same upbeat notes about business trends that the government-sponsored enterprise has been sounding for several months. There were, however, also several pieces of bad news. Indeed, they caused Paul J. Miller, an ...
In Brief: Saxon Posts Profit Drop, Restates Results.(Saxon Capital Inc.)(Brief article)
Apr 03, 2006; ... Saxon Capital Inc. said its fourth-quarter net income fell 44.2% from the same period a year earlier, to $17.8 million, or 35 cents a share. The Glen Allen, Va., nonprime specialist also said Friday that it had restated its results for 2001 through 2005 to eliminate hedge ...
In Brief: ResCap Joins Minn. Education Program.(Residential Capital Corp., McKnight Foundation, Minnesota Council on Economic Education)(Brief article)
Apr 03, 2006; ... General Motors Corp.'s Residential Capital Corp. has joined a program run by the McKnight Foundation and the Minnesota Council on Economic Education that trains community organizations in offering financial advice. The 2-year-old Community Mentorship Program teams educators from ...
In Brief: UBS Execs Form Real Estate Investor.(Jeffrey Goldberger, Andrew Cohen form Atlas Capital Group LLC)(Brief article)
Apr 03, 2006; ... Two UBS AG managing directors, Jeffrey Goldberger and Andrew Cohen, have formed Atlas Capital Group LLC, a New York commercial real estate investment firm. Atlas, whose formation was announced last week, said it will make equity investments around the world but will focus on New ...
Simulation Tool Helping CompuCredit Revamp Site.
Apr 03, 2006; ... CompuCredit Corp. is using specialized project management and simulation software to accelerate the upgrade of a bill payment Web site for one of its card products. Guido Sacchi, the Atlanta subprime credit card marketer's chief information officer, said in an interview last ...
In Brief: S1 Has No Interest in Selling.(S1 Corp.)(Brief article)
Apr 03, 2006; ... S1 Corp. says it has no plans to sell itself, despite calls from a significant shareholder urging it to do so. The Atlanta banking technology vendor said Friday that it believes its "business plan is just starting to show results, and that the long-term best interest of all ...
In Brief: AirNet Posts Profit; Revenue Up.(Brief article)
Apr 03, 2006; ... The struggling Columbus, Ohio, air courier AirNet Systems Inc. reported a fourth-quarter profit and increased revenue, stemming from increased demand for its passenger charter services and higher fuel surcharges. AirNet's main business, delivering checks for banks, has been ...
JPM's Harrison Got 38% Raise in '05.(Brief article)
Apr 03, 2006; ... The compensation of JPMorgan Chase & Co. chairman William B. Harrison Jr. rose 38% last year, to $22 million, the company reported Friday. Chief executive officer James Dimon was paid the same dollar amount, the company said in its proxy filing with the Securities and Exchange ...
In Brief: Northern Trust to Pay $38M in Enron Case.(Northern Trust Corp.)(Brief article)
Apr 03, 2006; ... Northern Trust Corp. said Friday that it had agreed to a $37.5 million settlement in an Enron Corp.-related class action filed in 2001. The Tittle v. Enron case was filed in U.S. District Court for the Southern District of Texas on behalf of participants in Enron employment ...
In Brief: Sterling of Pa. Buying Bay Net of Md.(Sterling Financial Corp., Lancaster, Pennsylvania)(Bay Net Financial Inc., Bel Air, Maryland)(Brief article)
Apr 03, 2006; ... Sterling Financial Corp. in Lancaster, Pa., said Friday that it has a deal to buy Bay Net Financial Inc. in Bel Air, Md., for $23 million in cash and stock. The $3 billion-asset Sterling, a five-bank holding company, said it would merge Bay Net, a Harford County institution, ...
In Brief: Cathay General to Buy 20% of First Sino.(Cathay General Bancorp, First Sino Bank)(Brief article)
Apr 03, 2006; ... Cathay General Bancorp in Los Angeles said Friday that it is buying a 20% stake in First Sino Bank in Shanghai for about $52.2 million. Closing the deal would make the $6.4 billion-asset Cathay the largest shareholder in First Sino. Regulators in the United States and China must ...
In Brief: Iowa Law Bars ILC Branches in Stores.(Governor Tom Vilsack on application from Wal-Mart Stores Inc. for industrial loan charter)(Brief article)
Apr 03, 2006; ... Wal-Mart Stores Inc. could not open an industrial loan company branch in any Iowa store location under a law signed last week by Gov. Tom Vilsack. The law makes Iowa the first state this year to enact legislation prohibiting branching by commercially owned ILCs. Seven other ...
Citi Vows to Defend Actions in Australia.(Citigroup Inc., Citigroup Global Markets Australia Party Ltd.)
Apr 03, 2006; ... Citigroup Inc.'s efforts to restore its reputation following recent regulatory issues appeared to suffer a setback last week. On Friday the Australian Securities and Investments Commission filed a civil lawsuit accusing Citigroup Global Markets Australia Party Ltd.'s investment ...
Are Huntington Moves First in Succession Plan?(Huntington Bancshares Inc.)
Apr 03, 2006; ... Huntington Bancshares Inc. has reorganized its executive team in a move that eliminated a layer of management and that one analyst said sets the groundwork for succession planning. The $33 billion-asset Columbus, Ohio, company announced Friday that it had given three executives ...
Correction.(Correction notice)
Apr 03, 2006 ... In the March 30 paper, the story on page 11, "Bank Variable Annuity Sales Rose as Retirement Answer," misstated ...
TransUnion Agrees to Resell Web Tool for Fraud Detection.(TransUnion LLC, ID Analytics Inc.)
Apr 03, 2006; ... TransUnion LLC has agreed to resell ID Analytics Inc.'s fraud score, which helps banks verify the identities of people applying for credit, the companies will announce today. Equifax Inc., Visa U.S.A., and other companies already resell the score, and the 4-year-old ID ...
The Long and Short of It.(bank investments)(Brief article)
Apr 04, 2006 ... The flat yield curve has in some ways simplified banks' investment decisions. With long- and short-term investments offering similar yields, many treasury managers are sticking to short-term investments to preserve cash and limit interest rate risk. Their challenge ...
Citi's Turn: Will Brand 7-Eleven's 5,500 ATMs.(Citigroup Inc.)
Apr 04, 2006; ... Citigroup Inc. has struck a deal to put its name on more than 5,500 automated teller machines at 7-Eleven Inc. convenience stores around the country. Though Citi is one of the world's largest banks, observers have long criticized its relatively small U.S. branch network, and ...
First Banks' 'Foundation' Agency Deal.(acquisition of insurance agencies)
Apr 04, 2006; ... First Bank in St. Louis says it hopes its first agency purchase will be a springboard for smaller deals in cities like Chicago, Los Angeles, Dallas, and Houston where it has bank branches. Chief financial officer Steven F. Schepman said the bank already has another ...
At FHLBs, Agendas Are Full, But Boards Are Not.(Federal Home Loan banks)
Apr 04, 2006; ... WASHINGTON -- As the Federal Home Loan banks are being required to raise retained earnings, register with the Securities and Exchange Commission, and -- in some cases -- restate past financial statements, they are doing so with a significant shortage of board members. On ...
Anxiety Over SBA Hearing: Some see new bid to do away with agency.(Small Business Administration)
Apr 04, 2006; ... WASHINGTON -- A Senate subcommittee that has been examining the effectiveness of government agencies will take a close look this week at the embattled Small Business Administration. The subcommittee will hear testimony Thursday from proponents and critics of the SBA, including a ...
$150M Placement Seen Helping Puerto Rico's R&G.(R&G Financial Corp.)
Apr 04, 2006; ... R&G Financial Corp.'s shares have dropped since the San Juan, Puerto Rico, company sold a $150 million securities offering, but analysts said the capital should put it on a firmer footing in the long term. On Friday, R&G, one of three Puerto Rican banking companies working ...
In Brief: A Bank Said Settling Terror Case.
Apr 04, 2006; ... Manhattan District Attorney Robert M. Morgenthau is reportedly negotiating a settlement with a large New York banking company that allegedly diverted $3 billion to terrorist organizations in the last two years. Mr. Morgenthau told the New York Post on Monday that money from a ...
Executive Changes.
Apr 04, 2006; ... Midwest LaSalle Bank, a Chicago unit of ABN Amro Holding NV, has promoted Mary Jo Herseth and Trish Kelly from group senior vice presidents to executive vice presidents. Both will remain in the jobs they were given last year: Ms. Herseth, who joined LaSalle in 1981, ...
In Brief: Union State of Kan. Acquiring State Bank.(Union State Bank, Arkansas City, Kansas)(State Bank, Winfield, Arkansas)(Brief article)
Apr 04, 2006; ... Union State Bank in Arkansas City, Kan., has agreed to buy the State Bank in Winfield. The Winfield Courier reported Saturday that the two banks decided to merge in order to be more efficient and have higher lending limits. Steve McSpadden, the president of the $104 ...
In Brief: Bancshares of Fla. Files to Offer Stock.(Brief article)
Apr 04, 2006; ... Bancshares of Florida Inc. in Naples has filed a registration statement with the Securities and Exchange Commission to offer up to 2.5 million common shares. In its filing March 31, the $570 million-asset company said it expects to raise $50 million from the offering. ...
In Brief: Community of S.C. Consolidating Units.(Community Bankshares Inc., Orangeburg, South Carolina)(Brief article)
Apr 04, 2006; ... Community Bankshares Inc., a multibank holding company in Orangeburg, S.C., plans to combine its four separately chartered banks and its mortgage company under a single charter. The $547 million-asset company said Friday that it hopes to complete the consolidation this year ....
In Brief: Fed Banks Ready ACH Risk-Check Service.(Federal Reserve banks, risk-monitoring for automated clearing houses)(Brief article)
Apr 04, 2006; ... The Federal Reserve banks plan to start a risk-monitoring service for automated clearing house transactions this spring. FedACH Risk Origination Monitoring Service will allow originating banks to keep track of the companies that initiate ACH payments, the Fed said Monday. It ...
In Brief: BioPassword Tailors Software for Banks.(BioPassword Inc. introduces BioPassword Internet Edition, authentication software for banks)
Apr 04, 2006; ... BioPassword Inc. on Monday announced BioPassword Internet Edition, authentication software that banks can offer their customers. BioPassword, of Issaquah, Wash., already offers the software to other businesses, which provide it to employees. The version for banks costs $30,000 ...
Firms Seek More Income From Cash Management.
Apr 04, 2006; ... Hoping to reverse a long slump in revenue, banking companies are rolling out a variety of new or upgraded online cash management systems. Though many of the new systems and features are aimed at different target markets and offer different benefits, they are all designed to ...
Community Banks* with Highest Return on Assets.(Statistical data)
Apr 04, 2006; ... <Pre> Return on avg. assetsReturn onEfficiency Rank 2005 2004 Assetsavg. equity ratio </Pre> 1 Eastern Savings Bank Hunt Valley, Md. 7.91% 6.82% $851,028 49.79% 33.63% 2 CityBank Lynnwood, Wash. 6.84 2.95 832,039 29.85 ...
In Brief: Mellon Joint Venture Started in Germany.(Mellon Financial Corp., WestLB AG)(WestLB Mellon Asset Management)(Brief article)
Apr 04, 2006 ... Mellon Financial Corp. announced Monday that it had completed the formation of a previously announced joint venture with WestLB AG to create a German asset management company. The company, WestLB Mellon Asset Management, was started April 1 with about 250 employees and $38 ...
In Brief: Deutsche Bank Picks Private-Client Head.(John Dudzik)(Brief article)
Apr 04, 2006 ... Deutsche Bank said Monday that it had appointed John Dudzik managing director and head of U.S. private-client services. Mr. Dudzik will report to Thomas Bowers, the head of the U.S. private wealth management division in New York. He is to manage the Deutsche Bank Alex. Brown ...
In Brief: ETF Assets Grew9.5% in 1st Quarter.(Brief article)
Apr 04, 2006 ... Assets held in exchange-traded funds globally have risen 9.5% since Jan. 1, according to data released Monday by Morgan Stanley. European exchange-traded funds' assets grew 17.7% during the year's first three months, U.S. ETFs' 8.6%, and Japanese ETFs' 5.2%, according to ...
In Brief: ProFund Advisers Starts a Japan Fund.(Brief article)
Apr 04, 2006 ... ProFund Advisors LLC, the investment adviser to the Bethesda, Md., ProFunds family of index-based mutual funds, said it launched the UltraShort Japan ProFund on Monday. The portfolio is designed to provide short, magnified exposure to the Japanese equity market by seeking daily ...
In Brief: Lincoln Closes on Jefferson-Pilot.(Lincoln National Corp.'s purchase of Jefferson-Pilot Corp., Greensboro, North Carolina)(Brief article)
Apr 04, 2006 ... Lincoln National Corp. said Monday that it had closed its purchase of the Greensboro, N.C., insurance concern Jefferson-Pilot Corp. The merger agreement was announced in October. The post-merger company will operate under the brand name Lincoln Financial Group and will continue ...
In Brief: Jackson National Education Plan.(Jackson National Life Insurance Co.)(Brief article)
Apr 04, 2006 ... Jackson National Life Insurance Co., the Lansing, Mich., subsidiary of London's Prudential PLC, said Monday that it had begun an educational program for financial advisers who want to capture retirement rollover assets. The program features materials that advisers can use to ...
In Brief: Many 'Retirees' Seen Working.(Brief article)
Apr 04, 2006 ... People are increasingly working well past traditional retirement age, according to a study released Monday by MetLife Inc., and some return to the work force after they retire, opting for paid and/or volunteer posts. About 78% of the respondents 55 to 59 years old were working ...
MBNA Veteran Named Freddie Auditor.(Kirk Die, Federal Home Loan Mortgage Corp.)
Apr 04, 2006; ... Freddie Mac said it has hired Kirk Die, a former MBNA Corp. executive, as a senior vice president and its general auditor. He will oversee the internal audit department and coordinate with its external auditor. He will directly report to the audit committee, as well as to chief ...
2 Agencies: Stake Deal Could Lift GMAC Ratings.(debt rating agencies rate General Motors Acceptance Corp.)
Apr 04, 2006; ... Two of the three major debt rating agencies expressed a tentatively brighter view of General Motors Corp.'s finance arm in light of GM's plan to sell a majority stake in it to a consortium that includes Citigroup Inc. and Aozora Bank Ltd. of Tokyo. But, the third, Moody's ...
Matrix Sells Some Assets to SN Capital.(Matrix Bancorp Inc., SN Capital Markets LLC, Matrix Bancorp Trading Inc.)(MTX Realty Corp., Metrowest Real Estate Solutions)
Apr 04, 2006; ... Matrix Bancorp Inc. of Denver said it had sold certain assets of its Matrix Bancorp Trading Inc. to a limited liability company co-founded by its former employees. The buyer, SN Capital Markets LLC, was recently co-founded by several former Matrix Bancorp Trading employees, ...
In Brief: TSYS Subsidiary Chief Exec Resigns.(Anil Aggarwal, Total System Services Inc., TSYS Prepaid)(Brief article)
Apr 04, 2006; ... Anil Aggarwal resigned Friday as chief executive of Total System Services Inc.'s prepaid card unit, TSYS Prepaid of New York. Eric Bruner, a spokesman for the Columbus, Ga., transaction processor, said Mr. Aggarwal first told his co-workers Thursday that he planned to leave, "to ...
In Brief: Discover Appoints A Bank President.(Christina Favilla, Discover Financial Services LLC)(Brief article)
Apr 04, 2006; ... Discover Financial Services LLC, the Riverwoods, Ill., card unit of Morgan Stanley, said Monday that it has hired Christina Favilla to succeed Kathy Roberts as the president of Discover Bank. Ms. Favilla was the first vice president of banking, cash management, and product ...
Correction.(Correction notice)
Apr 04, 2006 ... In the March 31 paper, a story on page 1, "A 10% Solution and Other New Basel II Ideas," overstated the impact of a plan to limit declines in regulatory capital. If the aggregate minimum regulatory capital held by the large banks adopting Basel II fell 10%, regulators would ...
In Brief: Study Offers Ways to Cut GSE Risk.(government sponsored enterprises)(Brief article)
Apr 04, 2006; ... Three economists at the Federal Reserve Bank of Atlanta have released a study Monday concluding that portfolio limits are the best way to reduce the systemic risks posed by Fannie Mae and Freddie Mac. Robert A. Eisenbeis, W. Scott Frame, and Larry D. Wall wrote in the study, ...
In Brief: Home Equity Lending Hearings.(Federal Reserve Board)(Brief article)
Apr 04, 2006; ... The Fed plans to hold hearings this summer on home equity lending, a top official said Friday. Fed Governor Susan Bies said the hearings are the first step toward a broader review of mortgage disclosure rules. "One of the issues that will be explored at the hearings ...
In Brief: 2 Pickups in 2 Weeks for Synovus.(Synovus Financial Corp., First Florida Bank, Riverside Bank of Marietta, Georgia)(Brief article)
Apr 04, 2006; ... Synovus Financial Corp. said Monday that it had completed its second bank acquisition in two weeks. The $29 billion-asset Columbus, Ga., banking company wrapped up its $87 million purchase of First Florida Bank in Naples on Friday, a Synovus spokesman said Monday. The deal for ...
In Brief: New Check Cashing Guidelines.(tax preparers)(Brief article)
Apr 04, 2006; ... Tax preparation businesses that cash other businesses' tax refund anticipation loan checks are required to report certain transactions under new Bank Secrecy Act guidelines. Under certain circumstances, any business that cashes another business' checks for $1,000 or more in one ...
In Brief: '05 Uptick in Costlier Mortgages.(Brief article)
Apr 04, 2006; ... The volume of higher-priced mortgages rose last year because of higher interest rates, according to the federal banking and thrift agencies. The information was reported in an updated version of "frequently asked questions" on the Home Mortgage Disclosure Act that the agencies ...
In Brief: American Banker Texas to Launch.(Brief article)
Apr 04, 2006 ... SourceMedia Inc., the publisher of American Banker, said that on April 21 it will begin publication of American Banker Texas, the first of a series of state and regional online news services for financial services professionals. "American Banker Texas will allow us to better ...
Mixed Outlook on 3 Thrifts Under Pressure.(Industry overview)
Apr 04, 2006; ... Bleak earnings prospects fueled by continued pressure from the flat yield curve caused one analyst to downgrade three New York thrift companies' stocks Monday. Jeff K. Davis, an analyst at First Horizon National Corp.'s FTN Midwest Securities Corp., lowered his ratings on New ...
Climate Control.(Editorial)
Apr 04, 2006; ... Navigating the yield curve is a constant challenge for bank treasurers. Treasurers are largely responsible for managing banks' investment portfolios and getting the best yield possible. But though they are well paid to monitor interest rate trends, the truth is they can never ...
Why Some S Corporations Are Playing Waiting Game.
Apr 04, 2006; ... Next year the banks that became S corporations in 1997 will rejoice as the 10th anniversary of their election eliminates the potential of double taxation on assets subject to built-in-gains taxes. This double taxation occurs on a small scale if an S corp sells an asset which had ...