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 Tue, Mar 24 1992 Date: Tue, 24 Mar 92 05:43:45 EST Message-ID: 03-24 0000 DECISIONLINE: Banking & Economy USA TODAY Update March 24, 1992 Source: USA TODAY:Gannett National Information Network ECONOMY HURTING BUSH: A new USA TODAY:CNN:Gallup poll shows that the economy is seen as one of President Bush's major weaknesses as heads into battle with likely Deomcratic presidential nominee Bill Clinton. On the other hand, the poll found that the economy is one of Clinton's strengths. But Bush press secretary Torie Clarke takes heart in 37% saying the economy is getting better, up from 22% six weeks ago. BANK MERGER APPROVED: The last obstacle to the takeover of Security Pacific by BankAmerica was cleared Monday when the Federal Reserve approved the $4 billion merger. The merged bank will be the second largest in the USA behind Citicorp. It will have $192 billion in assets and hundreds of branches in 10 Western states and Hawaii. Citicorp has about $217 billion in assets. FED PUTS CONDITIONS ON OK: The Federal Reserve approved the merger of Security Pacific and BankAmerica Monday on the condition that the merged bank meet lending goals in poor neighborhoods and sell branches to avoid antitrust problems. The banks have agreed to sell 213 branches in Washington, California, Arizona, Nevada and Oregon. BankAmerica and Security Pacific first announced plans to merge Aug. 12. DOW STARTS WEEK DOWN: The Dow fell slightly Monday in slow trading on Wall Street. Analysts say many investors are likely waiting for new reports on the economy. The Dow Jones industrial average lost 4.25 points to 3272.14. Broader market indexes also fell. Falling stocks beat winners 996 to 699 on the New York Stock Exchange, where volume was the second-slowest this year at 157 million shares. COMPENSATION UP ON WALL STREET: There is no sign of a recession on Wall Street - at least among salary and compensation for brokerage chiefs. Examples: Merrill Lynch Chairman William Schreyer received cash compensation of $5.9 million last year, up from $1.7 million in 1990; Smith Barney, Harris Upham Chairman Frank Zarb got $2.3 million, up from $1.6 million in 1990. Last years' stock rally made the raises possible. COURT REJECTS THRIFT CHALLENGE: The Supreme Court Monday rejected a challenge to the takeover of failed Kansas thrift Franklin Savings Association by federal regulators. The court let stand a ruling by a U.S. Court of Appeals that regulators had the legal authority to take over Franklin in 1990. A judge originally ruled that actions by M. Danny Wall, then-director of the OTS, were arbitrary and without factual basis. DISCOUNT RATE DOWN: The Treasury Department sold $11.5 billion Monday in three-month bills at an average discount rate of 4.08%, down from 4.09% last week. Another $11.5 billion was sold in six-month bills at an average discount rate of 4.27%, unchanged from last week. RTC SLIMMING DOWN: The Resolution Trust Corp. plans to cut its staff by 50% and shut nine offices next year as it concludes its task of bailing out failed savings and loans winds down, the agency said Monday. The RTC says it had only 73 thrifts in conservatorship by mid-March, all of which will be sold or merged by September. Since 1989, the RTC has collected about $234.1 billion from selling 630 thrifts. BANC ONE ANNOUNCES BUYOUT: Columbus, Ohio-based Banc One said Monday it is buying closely held, Dallas-based Team Bancshares for $782 million in stock. The 375 investors who own Team Bancshares will get $82 in Banc One stock for each of their shares. Banc One is paying 2.2 times Team Bancshares' book value of $37.46 a share, well above the normal bank deal that comes in at less than two time book value. OIL PRICES RISE: Energy futures prices settled higher Monday after last week's selloff. Light sweet crude for delivery in May rose 4 cents to settle at $19.31 a barrel on the New York Mercantile Exchange. Lower-grade sour crude for delivery in May settled at $16.38 a barrel, up 9 cents. Contracts for refined products also settled higher. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3272.14, after closing down 4.25 Monday. The New York Stock Exchange composite opens at 226.41, down 0.55. The American Stock Exchange market value opens at 401.36, down 0.67. The NASDAQ OTC composite opens at 621.83, down 2.45. DOLLAR OPENS DOWN: The dollar opens down on foreign markets Tuesday. It opens at 0.5826 British pounds, down from 0.5834; 5.6561 French francs, down from 5.6920; 133.73 Japanese yen, down from 133.90; and 1.6688 German marks, down from 1.6705. (As of 3 p.m. Monday. Source: First American Bank of New York.) 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. 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