Path: bloom-picayune.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 18 1992 Date: Fri, 18 Sep 92 04:43:57 EDT Message-ID: 09-18 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 18-20, 1992 Source: USA TODAY:Gannett National Information Network GLOBAL CURRENCY MARKETS EDGY: Global currency markets moved into the quiet eye of a financial hurricane Thursday as investors and central bankers surveyed the wreckage left by this week's near-collapse of the European Monetary System. Still to come: Sunday's vote in France on the Maastricht treaty, meaning unity for Europe - including a single currency Analysts say a no vote will trigger another financial turmoil. OFFICIALS BLAME THE BUNDESBANK: Political leaders Thursday blamed each other for the currency debacle. British officials criticized Germany's central bank, the Bundesbank, for its stubborn refusal to slash its high interest rates - the root of the crisis, many experts say. Disappointment that the Bundesbank cut its key Lombard rate just 1:4% Monday is widely thought to have triggered the European collapse. U.S. INVESTORS KEEP QUIET: U.S. investors stayed on the sidelines Thursday, waiting to see what's next in Europe's continuing money madness. "People are hunkering down here," says Jim Solloway, strategist at Argus Research. He thinks a vote for the Maastricht treaty would increase chances for monetary unification, which could lead to economically stronger Europe. A stronger Europe could buy more U.S. exports. JOBLESS CLAIMS RISE: The number of people applying for unemployment benefits rose to 400,000 the week ended Sept. 5, the Labor Department said Thursday, from 394,000 the previous week. Most of the increase in jobless claims came from laid-off General Motors and people applying for jobless benefits after being stranded by Hurricane Andrew. But it still is clear labor is weak, experts say. TRADE DEFICIT EXPANDS: The trade deficit widened to $7.8 billion in July, the Commerce Department said Thursday, from $6.7 billion in June. The gap between imports and exports was the widest imbalance since a $9.5 billion deficit in November 1990. Exports fell 2.4% in July from June's record $38.2 billion. A huge drop in jet exports, which fell $898 million to $1.7 billion, fueled the decline. GUILTY PLEA DUE IN SILVERADO: Silverado savings and loan's former majority owner agreed to plead guilty Thursday to one felony count of misapplying nearly $100,000, a special prosecutor said. W. James Metz told a magistrate at a brief hearing in U.S. District Court that he would enter a guilty plea, said special prosecutor Marvin Collins. Metz was the second former Silverado exec named in a case this week. WISE WAS NAMED EARLIER: W. James Metz, who agreed Thursday to plead guilty of misapplying nearly $100,000, is the second former executive of Silverado Banking Savings and Loan named in a criminal case in the past week. On Sept. 10, Michael Wise, the former chairman, was named in a three-count bank fraud indictment alleging he illegally diverted part of a $1.45 million loan from Silverado for his use. JUSTICE SUES SAVINGS AND LOAN: The Department of Justice on Thursday filed a complaint and accompanying consent decree resolving claims against Atlanta-area Decatur Federal Savings and Loan Association, a home mortgage loan provider. The complaints were that Decatur engaged in a pattern of discrimination against prospective black homebuyers in marketing and granting or denying mortgage loans. RULE WOULD HELP MINORITIES: The Office of Thrift Supervision will actively seek contracts for goods and services from businesses owned and controlled by minorities, women and disabled individuals, according to a proposed rule published in the Federal Register Thursday. The policy would try to ensure that minority- and women-owned businesses participate in the OTS contracting programs. DOW DOWN, TREASURY BILLS STEADY: The Dow Jones industrial average fell 3.51 points to 3315.70 Thursday. The NASDAQ composite index gained 1.93 points to 587.82. The yield on 30-year Treasury bonds was unchanged at 7.33%. The discount rate on three-month Treasury bills was also unchanged at 2.89%. Oil fell 9 cents to settle at $22.30 a barrel on the New York Mercantile Exchange. GOLD, SILVER DOWN: Gold and silver prices declined Thursday. At the Commodity Exchange in New York, current gold cost $347.90 an ounce, down $1.90. Republic National Bank of New York had the spot price at $347.75, off $1.45. Silver traded in London at a bid of $3.80 a troy ounce, down from $3.83. On the Commodity Exchange in New York, silver for current delivery fetched $3.766, down from $3.821. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3315.70 Friday after closing down 3.51 Thursday. The New York Stock Exchange composite opens at 230.97, down 0.10. The American Stock Exchange market value opens at 385.16, down 0.36. The NASDAQ OTC composite opens at 587.82, up 1.93. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.562 British pounds, up from 0.559; 5.083 French francs, down from 5.174; 1.485 German marks, down from 1.520; and 124.5 Japanese yen, down from 125.3. (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 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