Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!tamsun.tamu.edu!mtecv2!americast.com!americast.com!usa-post From: usa-post@AmeriCast.Com Newsgroups: usa-today.banks,americast.usa-today.banks Subject: banks Mon, Aug 31 1992 Message-ID: Date: 31 Aug 92 08:51:28 GMT Organization: American Cybercasting Lines: 129 Approved: usa-post@AmeriCast.com 08-31 0000 DECISIONLINE: Banking & Economy USA TODAY Update Aug. 31, 1992 Source: USA TODAY:Gannett National Information Network FDIC POSTPONES INSURANCE VOTE: The Federal Deposit Insurance Corp. says it will delay - for two weeks - a final vote on raising insurance premiums charged to banks and savings institutions. In a preliminary vote in May, the FDIC board voted 3-2 for the increase, to 28 cents per $100 Jan. 1 from 23 cents per $100. But the death last week of FDIC Chairman William Taylor, who voted in favor of the increase, has changed things. TAYLOR'S DEATH MAKES CHANGE: The death last week of Federal Deposit Insurance Corp. Chairman William Taylor casts doubt on a preliminary vote to raise the insurance premiums charged banks. Taylor cast the deciding vote in the 3-2 decision in May and was a strong advocate of shoring up the bankrupt FDIC insurance funds so they can repay funds borrowed from taxpayers. The final vote is now scheduled for Sept. 15. JAPAN APPROVES SPENDING PACKAGE: The Japanese government approved an $87 billion spending package Friday aimed at jolting the sluggish economy back to life. The economic recovery plan includes tax cuts to stimulate corporate investment, debt relief for banks and massive public spending projects. Since the government unveiled some parts of the plan nine days ago, the Tokyo stock market has soared 26%. INVESTORS LIKE PACKAGE: Investors in Japan appeared pleased with the Japanese spending package unveiled Friday. After investors got a look at the plan, designed to jump-start the slow-moving economy, the Nikkei jumped 415.79 points, or 2.4%, to 17,970.79, its highest close since June 3. U.S. Treasury Secretary Nicholas Brady says the plan should be an important contribution to strengthening the world economy. SPENDING OUTPACES GROWTH: Income growth in July trailed consumer spending for the second month in a row. The Commerce Department says spending rose a modest 0.3% to an annual rate of $4.1 trillion, while incomes grew just 0.2% to an annual rate of $5.1 trillion. In June, incomes rose just 0.1% while spending climbed 0.4%. TRADE DEFICIT CLIMBS: The merchandise trade deficit jumped to $24 billion in the second quarter from $17 billion in the first quarter, the Commerce Department says. The rise is an 18-month high. It was attributed to a big rise in imports while export demand fizzled because of weaker economies in Europe and Japan. THIRTY-YEARS TOP 8%: Rates on 30-year mortgages jumped back above 8% this week, pushed up by a plunge in the value of the dollar. Thirty-year fixed-rate mortgages averaged 8.01%, up from 7.87% last week, according to a national survey released Friday by the Federal Home Loan Mortgage Corp. The jump brings the rate back to its level of early August, before it sunk to a 19-year low last week. ANDREW WILL MEAN NET LOSS: Following the initial economic bust - and a subsequent boom - for South Florida in the wake of Hurricane Andrew, the storm will mean a net economic setback, experts say. A boom is already beginning. Winners: Tree services, roofers, carpenters, hardware stores. As many as 7,000 construction jobs will spring up within six months, says economist Bruce Thomson of the Florida Department of Labor. HIRING PICKUP FALTERS: Spring hopes for a strong pickup in hiring seem to have collapsed under the weight of summer's disappointingly weak economy. Manpower Inc. reports Monday that, of 15,000 businesses it surveyed in August, 21% plan to hire in the fourth quarter, down from 25% in the third. Eleven percent plan to cut staff, up from 8% in May's survey; 65% plan no changes. INTEREST RATES TOO HIGH: The Bundesbank is holding interest rates too high, Deutsche Bank economist Norbert Walter said Saturday. That's causing problems both for Germany's economy and the entire European community. Bundesbank leaders defend the move by saying they're hoping to avoid an explosion of inflation, something Germany has feared since a runup after World War I. OTS SEEKS $8.6M REPAYMENT: The Office of Thrift Supervision said Friday it has begun proceedings to get back $8.6 million from the former chairman of a failed Illinois Thrift, First Savings of America. The OTS said Roland Bonar approved real estate loans that were not adequately secured by the underlying property. Defaults on those loans cost the Illinois thrift millions of dollars, the OTS said. GOLD UP, SILVER MIXED: Gold prices rose around the world Friday. On the New York Commodity Exchange, gold bullion for current delivery settled at $339.90 a troy ounce, up 70 cents from $339.20 on Thursday. On New York's Comex, silver bullion for current delivery settled at $3.674 a troy ounce, down from $3.705 Thursday. Silver traded in London at a bid of $3.70 a troy ounce, unchanged from Thursday. T-BILLS RISE, PLATINUM UP: The Dow Jones industrial average climbed 12.97 points Friday to 3267.61, up 13.57 points for the week. The NASDAQ composite index rose 0.29 points to 563.56. The yield on 30-year Treasury bonds rose to 7.42% from 7.39%. The discount rate on three-month T-bills rose to 3.16% from 3.15%. On the New York Mercantile Exchange, Platinum rose $3 to $358 an ounce. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens Monday at 3267.61 after closing up 12.97 Friday. The New York Stock Exchange composite opens at 228.43, up 0.70. The American Stock Exchange market value opens at 381.18, up 0.18. The NASDAQ OTC composite opens at 563.56, up 0.29. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy editor: Beth Mann. (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