Path: bloom-picayune.mit.edu!enterpoop.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.banks,americast.usa-today.banks From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: banks Fri, Sep 11 1992 Date: Fri, 11 Sep 92 04:33:18 EDT Message-ID: Lines: 124 09-11 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 11-13, 1992 Source: USA TODAY:Gannett National Information Network ECONOMISTS DON'T BELIEVE BUSH: The economy can't possibly reach President Bush's goal of doubling in size in the next decade, economists say. "I know we can nearly double (the economy) again through sustainable real growth over the next decade," Bush told the Economic Club of Detroit on Thursday. His goal: a "$10 trillion economy by the first years of the 21st century." BUSH COUNTS ON REAL GROWTH: President Bush Thursday said he wants an economy of $10 trillion "by the first years of the 21st century," leaving economists doubtful. Bush said the growth should not be achieved by allowing inflation to pump up the value of goods and services. His goal would mean the USA would have to be worth more than twice as much as it's current $5 trillion value. SILVERADO EX-CHAIRMAN CHARGED: The former chairman of Denver's failed Silverado Banking, Savings & Loan was charged Thursday with breaking U.S. banking laws. Michael Wise faces up to 15 years in prison and $750,000 in fines on a three-count indictment charging him with diverting $458,000 in Silverado funds. The money bought one of Wise's homes and paid for improvements on another, a lawyer said. SILVERADO FAILED FOUR YEARS AGO: Four years after Silverado Banking, Savings & Loan failed, the former chairman, Michael Wise, has been charged with breaking banking laws. Silverado failed in 1988, costing taxpayers $1 billion. It made headlines and became a political issue largely because Neil Bush, President Bush's son, served on Silverado's board. Neil Bush agreed to pay a $50,000 fine. UNEMPLOYMENT CLAIMS INCREASE: New unemployment claims rose 8,000 to 394,000 the last week of August, even though some south Florida claims offices were closed because of Hurricane Andrew. Claims continue to hover near 400,000 a week, which economists say is a sign the economy remains sluggish. BUSINESS SPENDING SHOULD RISE: Business spending to expand production is expected to rise 4.3% this year to $551 billion, a cutback from earlier expectations of a 4.7% increase. The Commerce Department surveyed hundreds of companies in July and August for the report. M2 INCREASES: The M2 money supply was up $7 billion in the week ended Aug. 31, but economists linked the stronger-than-expected increase to a temporary gain in increased mortgage prepayments. Homeowners refinancing mortgages are placing the funds in checking accounts, a component of M1, an economist said. M1, the narrowest measure of money supply, increased $6.6 billion. TAX CATEGORY PROBE POSTPONED: A House Ways and Means Committee panel Thursday postponed an investigation into proposals to create a new category of tax-exempt securities. The subcommittee on select revenue measures said it would wait for the Treasury Department to consolidate three proposals into a single suggestion. One possible exemption: Interest payments on corporate bonds. WESTERN PRESIDENT TO RETIRE: The president of Western Financial Corp. Thursday said he would retire Jan. 1, when he will turn 65. M.D. Vaughn also is executive vice president of Columbia Savings Association. Vaughn will remain as a consultant for both companies. Joseph Lake, president of Columbia Savings, will assume the title of chief financial officer and will beomce president of Western. TWA LABOR AGREEMENT APPROVED: Bankruptcy court approved a labor agreement Thursday between TWA and three unions. Under the agreement, members of the flight attendants, pilots and machinists unions would take a 15% pay and benefits cut and get a 45% stake in the company. But employee pension plan problems still need to be ironed out. TREASURY RESULTS MIXED: The Dow Jones industrial average rose 33.77 points to 3305.16 Thursday. The NASDAQ composite index was up 6.35 to 581.24. The yield on 30-year Treasury bonds rose to 7.24% from 7.23%. The discount rate on three-month T-bills fell to 2.90% from 2.91%. On the New York Mercantile Exchange, platinum slid $3.30 to $358.60. Light sweet crude oil fell 6 cents to $21.93 a barrel. GOLD, SILVER MIXED: Gold prices were mixed Thursday. On the New York Commodity Exchange, gold bullion for current delivery settled at $342.20, unchanged. Republic National Bank quoted at price of $341.60, down from $342.00. Silver bullion in London was steady at a late bid price of $3.74 a troy ounce. On the Comex, silver bullion for current delivery settled at $3.701 a troy ounce, down from $3.709. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3305.16 Friday after closing up 33.77 Thursday. The New York Stock Exchange composite opens at 230.78, up 1.68. The American Stock Exchange market value opens at 384.87, up 1.99. The NASDAQ OTC composite opens at 581.24, up 6.35. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Friday. It opens at 0.5075 British pounds, up from 0.5053; 4.8205 French francs, up from 4.8055; 1.4150 German marks, up from 1.4063; and 123.10 Japanese yen, up from 122.92. (As of 3 p.m. Thursday. 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: Beth Mann. (1-919-855-3491) Making copies of USA TODAY downdate (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