Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Wed, Aug 19 1992 Date: Wed, 19 Aug 92 04:20:00 EDT Message-ID: 08-19 0000 DECISIONLINE: Banking & Economy USA TODAY Update Aug. 19, 1992 Source: USA TODAY:Gannett National Information Network HOUSING STARTS FALL: New home construction fell 2.8% to an annual rate of 1.12 million, the Commerce Department said Tuesday. Officials of the National Association of Home Builders cited a weak economy for being responsible for the fall. Long-term mortgage rates are the lowest since 1973, and adjustable-rate mortgages are at all-time lows. The south is the only region where housing starts rose. TOKYO STOCKS DROP: Tokyo stocks plunged 4% Tuesday, or 620 points, to a six and a half year low of 14,309. The drop spurred the government to unveil measures aimed at stemming sell-offs and keeping a credit crunch from stifling a recovery. The government is expected to announce an economic package at the end of the month. In Tokyo Wednesday, the Nikkei rebounded 205 points, 1%, to 14,514 in early trading. WANG FILES FOR CHAPTER 11: Wang Laboratories filed for Chapter 11 bankruptcy protection Tuesday, casting new doubts on its future as a stand-alone computer maker. The filing protects the company from creditors and gives it time to reorganize assets. Richard Miller, Wang's chief executive, said he expects Wang to emerge from Chapter 11 as a smaller company. OTS MAY CHANGE BANKING RULES: The Office of Thrift Supervision Tuesday proposed to streamline regulations governing federal thrifts and banks' mergers and charter conversions. The proposal would let federally chartered savings associations to convert directly into state and national banks. The proposal also would let all insured depository institutions merge. CHRYSLER, CREDITORS AGREE: After several months of negotiations, Chrysler reached an deal with a worldwide consortium of banks to extend a $6.8 billion credit line through August 1995. The deal gives Chrysler some financial breathing room but comes with strict conditions. "This was a complex and difficult agreement to reach but it couldn't have come at a better time," Chairman Lee Iacocca says. FTC LAUNCHES CREDIT CRACKDOWN: The Federal Trade Commission, in it's effort to crack down on companies that illegally sell consumer's credit file, is targeting about 200 information brokers that collection data from credit bureaus, public documents and independent investigations. The FTC says lawyers and private detectives have obtained consumers' credit files to use in court, an illegal practice. MORE EYEING 20-YEAR MORTGAGES: Members of the forty-something crowd who want to own their homes mortgage-free when they retire are discovering 20-year home loans. The loans are luring those who want to pay off a home loan in less than 30 years but who can't afford a 15-year mortgage's high payments. Fannie Mae has financed $3.1 billion in 20-year mortgages in six months, 76% more than a year earlier. CLINTON, GORE GET CEO SUPPORT: Arkansas Gov. Bill Clinton and Sen. Al Gore, D-Tenn., are picking up more endorsements from top business leaders. So far, 17 current or retired heads of major companies have added their support. More are understanding that taxes need to be paid to "keep this country going and to rebuild our infrastructure," says Bruce Llewellyn, CEO of Philadelphia Coca-Cola Bottling. CRUDE CLOSES UP: Oil prices were mixed Tuesday as traders kept an eye on the Middle East. Light sweet crude oil for delivery in September settled at $21.47 a barrel, up 2 cents, at the New York Mercantile Exchange. In recent sessions, the market has been closely following events following reports that the United States is ready to use military force so United Nations teams can inspect military sites. GOLD DOWN, SILVER MIXED: Gold fell in light trading while silver was mixed. Gold for August delivery fell $1.10 to $335.80 on the Commodity Exchange. Republic National Bank of New York quoted a bid of $336.40, down 85 cents. Gold fell in London to $336.00 from $337.20. Silver rose in London to $3.80 from $3.79. On the Comex, silver was quoted at $3.771 an ounce, down 0.9 cent. DOW JONES OPENS SLIGHTLY UP: The Dow Jones average of 30 industrials opens Wednesday at 3329.48 after closing up 4.59 points Tuesday. The New York Stock Exchange composite opens at 231.90, up 0.30. The American Stock Exchange market value opens at 386.81, up 0.13. The NASDAQ OTC composite opens at 570.87, down 1.60. DOLLAR OPENS DOWN OVERSEAS: The dollar opens mostly down on Wednesday. It opens at 0.5179 British pounds, down from 0.5187; 4.9400 French francs, down from 4.9565; 1.4563 German marks, down from 1.4618; and 126.07 Japanese yen, up from 125.60. (As of 3 p.m. Monday. Source: First American Bank of New York.) Banking & Economy editor: Christopher Goldthwaite. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution purposes 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