Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Mon, Feb 24 1992 Date: Mon, 24 Feb 92 06:25:44 EST Message-ID: DECISIONLINE: Banking & Economy USA TODAY Update Feb. 24, 1992 Source: USA TODAY:Gannett National Information Network TAYLOR CAUTIOUS ABOUT BANKS: Though bank stocks are on the rise, and financial reports for banks at the end of 1991 were positive, Federal Deposit Insurance Corp. Chairman William Taylor is cautious. Taylor said last week that the problem of bad loans is getting better, but it's not over. Taylor is "not pessimistic, but cautious," he says, adding that any improvement "is modest at best. ... It's still pretty bad." CALIFORNIA BANKS TROUBLED: FDIC Chairman William Taylor said last week that he's watching California banks closely. The recession is pounding the state, and its banks are reporting growing loan losses. "People are pretty pessimistic on California," Taylor says. "Over the years, I've noticed that people are always pessimistic on California. But it really is important to watch over the next three to nine months." INSIDERS SELL SHARES: Big stock sales by insiders have been seen recently at Gap Inc. and Knight-Ridder newspapers. At retailer Gap, chairman Donald Fisher and his son, Robert, a board member - dumped more than a million shares last month. Analysts think it is normal selling. Also, retired Knight-Ridder chairman Alvah Chapman Jr., who has been slowly reducing his stock, sold 86,700 shares Jan. 16-21. MOST INDEXES DOWN FOR WEEK: The Dow Jones industrial average fell 0.45 points to 3280.19 Friday. For the week, the Dow gained 34.22 points. For the week, the Standard & Poor's index of 500 stocks fell 1.02 points to 411.46. The NASDAQ index lost 6.53 points to 629.75. The American Stock Exchange index lost 1.41 points to 412.85. SPLITS NOT LIKELY TO CONTINUE: Analysts say despite announcements by Walt Disney Co. and Coca-Cola last week of stock splits, it will not become a trend. Companies once split their shares when stock prices hit three digits in hope of attracting individual investors. But, "there is less interest in attracting small investors," says Arnold Kaufman of Standard & Poor's Corp. "Companies think they're a bother." STEMPEL TO MAKE ANNOUNCEMENT: GM Chairman Robert Stempel Monday will announce the automaker's 1991 financial results - a $6.5 billion loss is expected - and may announce the closing of a large assembly plant. Stempel will speak to employees in a national teleconference, and is expected to say whether the plant in Arlington, Texas, or Willow Run, Mich., will close. Friday, the Detroit Free Press said it will be Arlington. MORTGAGE RATES RISE: Fixed mortgage rates rose last week to their highest level in four months, the Federal Home Loan Mortgage Corp. said. The average 30-year fixed mortgage rate climbed to 8.82% from 8.73% a week earlier. One-year adjustable-rate mortgages rose to 5.92% from 5.78%. Also, the Department of Veterans Affairs said it is raising interest rates on VA mortgages to 8.5% from 8% effective Monday. IMPROVEMENT SEEN FOR AMEX: Argus Research analyst Daniel Murray sees better days ahead for American Express. Murray sees signs that could push the stock above $30 by year's end from $21 3:8 Friday. Among positive signs: The planned public offering of 45% of its Information Services Corp. subsidiary; and a return to profitability for its Shearson Lehman Brothers subsidiary. TRADERS SUBPOENAED IN YORK CASE: The U.S. attorney's office in New York Friday subpoenaed traders in York Research stock, reports USA TODAY columnist Dan Dorfman. He reports that the subpoenas, which he says are part of a federal grand jury probe into York, are seeking trading records in York stock. Steve Carlson of Aspen Capital Group, who was subpoenaed, says he believes the probe centers on wrongdoing by York. BCCI DEAL ANNOUNCED: Under a deal announced Friday, depositors in the Bank of Credit and Commerce International would get between 30% and 40% of their money back from the failed bank. The banks' main liquidator, Brian Smouha of the accounting firm Touche Ross and Co., said the deal requires the approval of courts in Britain, Luxembourg and the Cayman Islands, plus 70% of the eligible depositors. OIL PRICES DOWN: Oil prices fell modestly Friday, ending a week that saw oil prices fall dramatically. Light sweet crude oil for delivery in April settled at $18.66 per barrel, down 8 cents, at the New York Mercantile Exchange. For the week, crude oil fell 80 cents per barrel on contracts for next-month delivery, with the biggest drop - $1.30 per barrel - coming Tuesday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Monday at 3280.19 after closing down 0.45 Friday. The New York Stock Exchange composite opens at 227.46, down 1.14. The American Stock Exchange market value opens at 412.85, down 0.01. The NASDAQ OTC composite opens at 629.75, down 2.48. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. 08:0002240000D0224 LEGA- R G Traders-subpoenaed-in-York-case....... A D0224 This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM