American Banker back issues from April 2007:
Paging Peyton - Clever Ads Work Best, Survey Finds.(Peyton Manning)
Apr 02, 2007; ... Credit card advertisements that are both funny and clever give issuers a better return on their investment than those that are just funny, a marketing executive said. "How you use humor can leave an impression on the consumer. Clever is more important than humorous," said Paul ...
H&R Block Says Option One Sale Will Be Delayed.
Apr 02, 2007; ... H&R Block Inc. missed a self-imposed deadline to sell its ailing subprime unit, Option One Mortgage Corp., by the end of March, and it offered few clues about the holdup. In a two-sentence press release issued Friday morning, H&R Block said it "remains in negotiations to sell" ...
In Brief: M&T Lowers 1st-Quarter Guidance.(M&T Bank Corp.)(Financial report)(Brief article)
Apr 02, 2007; ... M&T Bank Corp. on Friday guided Wall Street lower for first quarter earnings, citing the troubled subprime mortgage market, rising expenses, and lower net interest margins. The Buffalo company said it now expects to earn a $1.50 to $1.60 a share, 26 cents to 36 cents below the ...
In Brief: Web Call Report Access Improved.(Brief article)
Apr 02, 2007; ... The three federal banking agencies announced the introduction Friday of a Web site that supplies quicker and more advanced access to banks' quarterly call reports. The site is another step in the agencies' conversion to a more interactive reporting system. Banks started ...
In Brief: Bernanke Rejects a Nonbank CRA.(Federal Reserve Board Chairman Ben Bernanke, Community Reinvestment Act)(Brief article)
Apr 02, 2007; ... Federal Reserve Board Chairman Ben Bernanke said Friday that the growth of nonbank lenders presents challenges to the spirit of the Community Reinvestment Act, but he rebuffed calls for the law to be extended beyond banks. "Some observers have suggested extending the CRA to ...
In Brief: Trading Revenue Rose 31% in '06.(Financial report)
Apr 02, 2007; ... Banks reported a record $18.8 billion in trading revenue at the end of 2006, up 31% from the previous year's annual record of $14.4 billion, the Office of the Comptroller of the Currency reported Friday. Banks generated $3.9 billion from cash and derivative instruments in the ...
In Brief: Amex Revamping Its Earnings Report.(American Express Co.)(Financial report)(Brief article)
Apr 02, 2007; ... American Express Co. said it will provide more details about interest income and expenses, delinquencies, and other things beginning with first-quarter results. The expanded disclosure, announced Friday, is a result of discussions with Securities and Exchange Commission staff ...
In Brief: JPM, Countrywide Cobranding Pact.(JPMorgan Chase & Co., Countrywide Financial Corp. )(Brief article)
Apr 02, 2007; ... JPMorgan Chase & Co. introduced a cobranded credit card with Countrywide Financial Corp. of Calabasas, Calif., that lets cardholders apply their rewards toward the principal on their mortgages. JPMorgan Chase's First USA announced last week that it is offering the Countrywide ...
In This 1Q, Credit Will Count.(Industry overview)
Apr 02, 2007; ... In the banking industry, first-quarter results are not supposed to hinge on credit quality, but it is hard to avoid the subject these days. The severity of the meltdown in the subprime mortgage market has stimulated a cottage industry of observers looking for the next domino to ...
Fiserv Fuels Image Clearing.
Apr 02, 2007; ... Image volume on Fiserv Inc.'s clearing network is already showing strong growth, the company said, and should pick up even more due to its agreement to exchange images with Bank of America Corp. Fiserv, a Brookfield, Wis., banking technology provider, is expected to announce ...
F Word Is Back But Isn't What It Used to Be.(Forbearance)
Apr 02, 2007; ... WASHINGTON -- Forbearance, a dirty word from the savings and loan crisis, is once again being bandied about as millions of subprime borrowers face possible foreclosure. The two leading Democratic contenders for president - Sens. Hillary Rodham Clinton of New York and Barack ...
Washington People.
Apr 02, 2007; ... Enough of That As regulators and lawmakers struggle to find the causes and solutions for the subprime lending meltdown, at least one regulator sees the solution in Dr. Seuss. Sara Kelsey, the Federal Deposit Insurance Corp.'s general counsel, said Wednesday at a ...
Global Payments Hikes Profit Target, Lowers Revenue One.(Financial report)
Apr 02, 2007; ... Global Payments Inc. expects growth in its merchant processing operations to boost revenue this year, but it still faces difficulties with its money transfer unit. The Atlanta transaction processor also has high expectations for its ongoing expansion in Asia, the result of a ...
UMB: New Competition In HSAs Won't Derail Growth.(UMB Financial Corp., health savings accounts)(Financial report)
Apr 02, 2007; ... UMB Financial Corp. doubled its health savings account business last year, and the president of its health care services unit said he is confident his company can continue to develop as larger banks enter the business. The Kansas City, Mo., banking company has amassed $75 ...
Alt-A Firm Impac Feeling Good About Its Prospects.(Impac Mortgage Holdings Inc.)(Financial report)
Apr 02, 2007; ... Though it is navigating precarious secondary-market waters, Impac Mortgage Holdings Inc. is acting like a company that expects to be one of those still afloat when the waters calm. The two securitizations the Irvine, Calif., real estate investment trust and alternative-A lender ...
Evergreen Announces Fund IPO.(Evergreen Investments Co., initial public offering)(Brief article)
Apr 02, 2007 ... Evergreen Investments Co., Wachovia Corp.'s asset management arm, announced last week the initial public offering of the Evergreen Global Dividend Opportunity Fund. Shares began trading Wednesday. The fund is a diversified portfolio of common stocks of U.S. and foreign companies ...
Cyclical Pull: Commercial Borrowers Tilt to Fixed: Tactics evolve as some see shift hitting outlook for margins.(Industry overview)
Apr 02, 2007; ... Bankers have responded to borrower preference and stiff competition for credit by making more fixed-rate commercial loans in recent quarters, observers say. Analysts said they believe that the trend, which is thought to be concentrated in commercial real estate and ...
Credit Worries Took High 1Q Toll on Bank Shares.
Apr 02, 2007; ... Bank stocks ended the first quarter on a sour note as the sector posted its worst performance relative to the broad market in more than a year and investors held on to concerns about credit quality. The group of 26 bank stocks in the Standard & Poor's 500 underperformed the ...
Rejected Thrift Suitor Ups His Bid, Threatens a Suit.(Marc J. Bistricer, Westborough Bank)
Apr 02, 2007; ... An unusual bidding war for a small Massachusetts thrift is escalating again. An investor in the $300 million-asset Westborough Bank - who is eager to stop a merger it has in the works - last week fattened his offer to buy out the publicly traded shares to $24.6 million in cash, ...
In Brief: Debt Resolve Collection Tool.(Debt Resolve Inc. )(Brief article)
Apr 02, 2007; ... Debt Resolve Inc. of White Plains, N.Y., which markets an online barter system for negotiating repayment plans, has introduced a tool for collecting this way on defaulted mortgages and car loans. The service "will allow debtors to access a secure Web site to pay and settle their ...
Executive Changes.
Apr 02, 2007; ... MIDDLE ATLANTIC Moody's Investors Service Inc. has promoted Michel Madelain to group managing director for global banking. Mr. Madelain will be in charge of all bank ratings globally and for overseeing the agency's bank ratings practice. He had been a ...
TIB of Tex. Seeking Escrow Expansion With Calif. Charter.(The Independent Bankers Bank)
Apr 02, 2007; ... TIB-The Independent Bankers Bank in Irving, Tex., has been offering its correspondent services to banks in California for five years but has missed out on one lucrative piece of business there: holding funds in escrow for banks in organization. That's because under California ...
First Data Europe Acquisition Tour Travels to Poland.
Apr 02, 2007; ... First Data Corp. is buying the Polish payment processor Polcard SA, continuing its expansion in the European payment processing market. The Denver company said Friday that it agreed to pay $325 million in cash for Polcard, which provides merchant processing, card issuing, and ...
Deal Done, EverBank Eyes Its Next Commercial Steps (Corrected).(EverBank Financial Corp.)(Correction notice)
Apr 02, 2007; ... EverBank Financial Corp. is betting that it can get Wall Street securitizers to take another look at a lending niche they have largely ignored: multifamily and commercial loans of $2.5 million and under. This month the $4.2 billion-asset Jacksonville, Fla., thrift company ...
ADP Spins Off Its Brokerage Services Unit as Broadridge.(Automatic Data Processing Inc.)(Broadridge Financial Solutions Inc.)
Apr 03, 2007; ... The business process outsourcing provider Automatic Data Processing Inc. has spun off its brokerage services group. The new company, Broadridge Financial Solutions Inc., began trading Monday on the New York Stock Exchange. It provides transaction processing services to ...
CUs' 7(a) Lending Would Widen Under House Bill.(Credit Union Small Business Lending Act)
Apr 03, 2007; ... House Small Business Committee Chairwoman Nydia M. Velazquez, D-N.Y., has introduced a bill that would enable credit unions to do more business lending. The Credit Union Small Business Lending Act, introduced Thursday, would exempt the nonguaranteed portion of Small Business ...
In Brief: 'Sell' on Nat City for a Sale, Fla. Buys.(National City Corp. acquires savings and loan associations in Florida)(Brief article)
Apr 03, 2007; ... National City Corp.'s sale of its nonprime business and purchase of two Florida thrift companies could be more dilutive to its earnings than expected, an analyst says. David A. George of A.G. Edwards & Sons Inc. downgraded the $140 billion- asset Cleveland banking company to ...
In Brief: Marshall & Ilsley Completes Florida Deal.(banking company acquires United Heritage Bankshares of Florida Inc.)
Apr 03, 2007; ... The Milwaukee banking company Marshall & Ilsley Corp. said Monday that it has acquired United Heritage Bankshares of Florida Inc. of Orlando for $217 million in stock. The acquisition gives the $56 billion-asset M&I 13 branches in the Orlando market. Orlando is a new market ...
In Brief: Webster Sells Three People's Branches.(Webster Financial Corp.)(People's Mortgage Corp.)(Brief article)
Apr 03, 2007; ... Webster Financial Corp. of Waterbury, Conn., said it has sold three of its People's Mortgage Corp. branches to the 1st Mariner Mortgage unit of the $1.3 billion-asset 1st Mariner Bank of Baltimore. The branches are in Severna Park and Rockville, Md., and Hamden, Conn., ...
In Brief: B of A to Split Duties of Retired Exec.(Graham Denton retires as president of Bank of America in Charlotte and North Carolina )(Brief article)
Apr 03, 2007; ... Bank of America Corp. will split the responsibilities of Graham Denton, who is retiring from a position that oversees all market executives and as the president of B of A's Charlotte and North Carolina market. The Charlotte company said Monday that Walter Elcock will succeed ...
SI Financial's Deal For Conn. Mortgage Company Called Off.(SI Financial Group Inc.)(Fairfield Financial Mortgage Group Inc.)
Apr 03, 2007; ... SI Financial Group Inc. in Willimantic, Conn., said Monday that it has terminated its deal to buy Fairfield Financial Mortgage Group Inc. in Danbury, Conn., because of anticipated changes in the regulation of mortgage companies. Lawmakers and regulators have promised a ...
In Brief: MasterCard Testing Mobile Data Service.(Brief article)
Apr 03, 2007; ... MasterCard Inc. said Monday that it is testing a service that will let cardholders use their mobile phones to find automatic teller machines and merchant locations, as well as to receive driving directions, rewards, and special offers. The Purchase, N.Y., company ...
CIT to Buy Citi Business Technology Finance Unit.(CIT Group Inc.)(Citigroup Inc.)
Apr 03, 2007; ... CIT Group Inc. continued its efforts to expand its vendor finance business by agreeing to buy Citigroup Inc.'s $2 billion-asset business technology finance unit. The deal, announced Monday, is not the first between the two companies in this area. In 2004, CIT bought Citi's ...
Priced to Sell: A Subprime Deal Closes.(Regions Financial Corp. sells EquiFirst Corp. to Barclays PLC)
Apr 03, 2007; ... Regions Financial Corp. had to cut the price of EquiFirst Corp. by two- thirds to sell the subprime wholesale mortgage lender to Barclays PLC, but for some observers, it was more significant that the deal got done at all. The companies said Monday that the deal had closed, and ...
Will Buyout Recharge First Data's Strategy?: Questions linger on platform consolidation, CEO succession.(First Data Corp.)
Apr 03, 2007; ... Much of the world will look at the deal to acquire First Data Corp. as yet another massive private-equity purchase, this one in the financial services industry. But for the banking and payments industries, the deal raises a very different and, in some ways more pressing, set ...
Home Loan Bank Profits Rise; Advances Off at Six.(federal home loan banks)
Apr 03, 2007; ... WASHINGTON -- Despite industry consolidation and a weak economy, combined profits at the 12 Federal Home Loan banks grew 4% last year, to $2.6 billion. Profits rose at eight of the banks last year, and advance volumes grew at six, according to the annual reports each of the ...
First Horizon Sale Buzz As Alt-A Dents Its Stock.(First Horizon National Corp.)
Apr 03, 2007; ... First Horizon National Corp. shares tumbled Monday amid widespread concerns about alternative-A mortgage originations, even though an analyst suggested that persistent economic challenges could force the Memphis company to sell. The slowing housing market and an inverted yield ...
Wealth Management Media Scan.(investing in retirement and pensions funds)
Apr 03, 2007; ... Involvement Options A young investor with maxed-out 401(k) and Roth individual retirement account contributions should consider three alternatives for putting an extra $1,200 a month to work, according to Money magazine. Counseling a 32-year-old reader in search of ...
M&T's First-Quarter Alt-A Hit Larger than Expected.(M&T Bank Corp.)
Apr 03, 2007; ... Few were expecting M&T Bank Corp.'s first-quarter results to be stellar, but the magnitude of the company's profit warning caught analysts off guard. The Buffalo company may be the first of several financial firms to report a first-quarter earnings hit from alternative-A ...
Debit at Core of Citi Mobile Banking Push.(Citigroup Inc.'s banking services through wireless telephones)
Apr 03, 2007; ... Citigroup Inc. has developed a mobile phone banking service that will be available to all account holders with debit cards. The move, announced Monday, is a sign that Citi expects mobile banking technology to become an important, and widely used, banking channel, though ...
In Brief: 2 Directors Leaving Countrywide Board.(Michael E. Dougherty and Kathleen Brown)(Countrywide Financial Corp.)(Brief article)
Apr 03, 2007; ... Two members of Countrywide Financial Corp.'s board are stepping down, the Calabasas, Calif., lender said late Friday. Michael E. Dougherty has decided not to stand for re-election but will remain a director until Countrywide's annual meeting in July. Kathleen Brown, the ...
In Brief: Jumbo Loan Delinquencies Jump 18%.(mortgage-backed securities)(Brief article)
Apr 03, 2007; ... Serious delinquencies on jumbo mortgage securities jumped 18% in January from a year earlier, reaching 0.35% of the loans in the pools, according to a report Moody's Investors Service Inc. issued Monday. Loans that were 30 to 59 days past due decreased 1.1%, to 0.55%. The ...
In Brief: CheckFree Acquires Carreker.(CheckFree Corp. and Carreker Corp.)(Brief article)
Apr 03, 2007; ... CheckFree Corp. has closed its acquisition of the Dallas software vendor Carreker Corp. The Atlanta bill-pay provider announced in January that it would pay $206 million for Carreker, or $8.05 a share. CheckFree has said that it wants to offer a broader range of payments ...
In Brief: Commerce Using Fortent Tool.(Commerce Bancorp Inc. to use Fortent Inc. anti-laundering software)(Brief article)
Apr 03, 2007; ... Commerce Bancorp Inc. of Cherry Hill, N.J., has deployed anti-laundering technology from Fortent Inc. of New York Fortent, which announced the agreement last week, said its software constantly updates individual profiles for each customer's behavior. "We needed an ...
In Brief: Mantas in Nigerian Pact.(First Bank of Nigeria PLC to use Mantas One security software)(Brief article)
Apr 03, 2007; ... FirstBank of Nigeria PLC has agreed to use anti-laundering and compliance software from Mantas Inc., a Herndon, Va., unit of i-flex solutions ltd. of Mumbai. Mantas said last week that FirstBank will use its Mantas One software, in part to meet the expectations of the ...
Grant Thornton Drops 2 Lenders As Audit Clients.(Accredited Home Lenders Holding Co., Fremont General Corp.)
Apr 04, 2007; ... Two California subprime lenders that have made some progress in dealing with liquidity challenges are seeking new auditors after being dropped as clients by Grant Thornton LLP. Accredited Home Lenders Holding Co. of San Diego and Fremont General Corp. of Santa Monica said ...
In Brief: Analysts Lower Targets for SunTrust.(SunTrust Banks Inc. )(Brief article)
Apr 04, 2007; ... Two analysts pared their earnings estimates for SunTrust Banks Inc. on Tuesday, partly because of growing concerns over the Atlanta company's exposure to certain types of mortgages. Kevin Fitzsimmons at Sandler O'Neill & Partners LP cut his estimates by 2 cents for this year, ...
In Brief: FDIC: Permits Down in Most States.(Federal Deposit Insurance Corp.)(Industry overview)(Brief article)
Apr 04, 2007; ... The Federal Deposit Insurance Corp. has released its fourth-quarter profile of banking and economic conditions in each state. Each profile includes economic data such as job growth and building permits and highlights banking trends, such as asset quality, liquidity, and loan ...
In Brief: MasterCard Director Exits, Cites New Job.(Manoel Luiz Ferrao de Amorim, Globex Utilidades SA)(Brief article)
Apr 04, 2007; ... A director of MasterCard Inc. resigned from the board last week because of a conflict of interest created by a new job he accepted. The Purchase, N.Y., company said last week in a filing with the Securities and Exchange Commission that Manoel Luiz Ferrao de Amorim informed ...
In Brief: TSYS Extends Pact With Mexican Firm.(Total System Services Inc., Spira de Mexico SA de CV)(Brief article)
Apr 04, 2007; ... Total System Services Inc. said it has extended a contract to process consumer credit card transactions for Spira de Mexico SA de CV. TSYS, which is majority owned by Synovus Financial Corp. of Columbus, Ga., announced the extension ...
In Brief: Discover Renames 2 Reward Products.(Brief article)
Apr 04, 2007; ... Discover Financial Services LLC said Monday that it has reintroduced two of its reward cards under different names, and a company executive left the door open for renaming more products. The Riverwoods, Ill., issuer, which Morgan Stanley plans to spin off this year, renamed ...
Corrections.(Correction notice)
Apr 04, 2007 ... In the April 3 special report, Community Banking, the guest column on page 2 misstated the author's employer. Nancy Michael is a senior consultant at Capital Performance Group LLC. In the April 3 paper, a story on page 4, "Home Loan Bank Profits Rise; Advances ...
Tex. Market's Changing, Cullen/Frost Isn't.(Cullen/Frost Bankers Inc.)
Apr 04, 2007; ... If Cullen/Frost Bankers Inc. chairman and chief executive Richard W. Evans Jr. is worried about the blitz of banks entering Texas, he hides it well. "I respect all competition - big, old, new," Mr. Evans said in an interview Friday. "But at the end of the day, I've got to ...
First Bank of Del. Shuts Storefront Lending Business.(First Bank of Delaware)
Apr 04, 2007; ... Nearly a year after being forced out of the payday lending business, First Bank of Delaware has bowed to regulatory pressure and will stop making third- party consumer installment loans. The $124 million-asset bank said late Friday that it would stop offering consumer loans ...
Bankers Touting Wireless Systems for Off-Site ATMs.
Apr 04, 2007; ... Banks have begun implementing wireless, cellular telecommunications in earnest at their automated teller machines at merchant locations. Mike Cochrane, the senior solution manager for Pathway technology at Diebold Inc., said that the North Canton, Ohio, ATM manufacturer has ...
Deal Wave: Is It Transformative?(Industry overview)
Apr 04, 2007; ... The financial transformation of bank vendors will probably sharpen competition and could be a catalyst for innovation in the transaction processing industry, analysts said Tuesday. With so many vendors in the throes of change, it may not be clear for some time where the ...
Wal-Mart Pullout Hasn't Stopped State ILC Bills.(industrial loan company)
Apr 04, 2007; ... WASHINGTON -- Even though Wal-Mart Stores Inc. has pulled its industrial loan company application, several states have not flinched in their efforts to ban companies like it from ever opening in-store branches. Since Wal-Mart withdrew its application March 16, three states - ...
Ill. Counseling Pilot Met With 'No, Thanks'.(Illinois predatory lending prevention program)
Apr 04, 2007; ... An Illinois pilot program aimed at curbing predatory lending in low-income neighborhoods has been so unpopular with borrowers, consumer advocates, and lenders that state regulators have halted it and gone back to the drawing board. The Illinois Predatory Lending Database ...
In Brief: Morgan Stanley Merges Pair of Units.(Brief article)
Apr 04, 2007; ... Morgan Stanley has completed the merger of its two principal U.S. broker- dealers. As of April 1, Morgan Stanley & Co. Inc. and Morgan Stanley DW Inc. have been combined into a single broker-dealer under the name Morgan Stanley & Co. Inc. The merger will enhance the integration ...
In Brief: Schwab Closes 401(k) Co. Deal.(Charles Schwab Corp.)(Brief article)
Apr 04, 2007; ... Charles Schwab Corp. completed its acquisition of 401(k) Co. from Nationwide Financial Services Inc. 401(k) Co. will continue to operate fromAustin as a Schwab subsidiary and is now part of the corporate and retirement services division. With the acquisition, completed ...
In Brief: MassMutual Forms Retirement Division.(Massachusetts Mutual Life Insurance Co.)(Brief article)
Apr 04, 2007; ... Massachusetts Mutual Life Insurance Co. has formed a group to help investors prepare for and live during retirement. The Springfield company announced Monday that it has merged its annuity and income management units to create a retirement income division. The new ...
In Brief: Fidelity: Platform's Assets Rose in '06.(Fidelity Investments' Advisor 401(k))(Brief article)
Apr 04, 2007; ... Fidelity Investments announced that total record-kept assets, new plans funded, and total plans on its Advisor 401(k) platform increased last year. Fidelity Advisor 401(k) is a suite of services for employer-sponsored plans offered through third-party financial advisors to ...
Commerce of Mo. Buying A Namesake in Colorado.(Commerce Bancshares Inc. of Kansas City, Missouri; Commerce Bank in Aurora, Colorado)
Apr 04, 2007; ... Commerce Bancshares Inc. of Kansas City, Mo., announced a $29.5 million deal Tuesday to buy the privately held Commerce Bank in Aurora, Colo. The $15.2 billion-asset buyer, which has about 360 branches in Missouri, Kansas, Illinois, and Oklahoma, is paying cash for the $97 ...
Security Watch.
Apr 04, 2007; ... Trends Thieves continue to seek out restaurants to feed their hunger for card data, Visa U.S.A. Inc. says. The computer systems of dining locations are the source of 40% of stolen credit card data, according to the San Francisco association. It says it is focusing ...
Lawsuits May Boost Banks' Anti-Laundering Burden.
Apr 04, 2007; ... WASHINGTON -- A number of class actions in New York have the potential to redefine how far banks have to go to vet customers for potential ties to terrorism around the world. The plaintiffs, family members of victims of attacks in Israel, argue that three foreign banks with ...