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 Tue, Sep 22 1992 Date: Tue, 22 Sep 92 04:55:02 EDT Message-ID: 09-22 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 22, 1992 Source: USA TODAY:Gannett National Information Network IMF WANTS FED NOT TO CUT RATES: The Federal Reserve is coming under political pressure not to cut interest rates - from an unlikely source. Leaders of the International Monetary Fund, one of the world's key financial institutions, say they want the Fed to quit slashing rates. Officials say a Fed rate cut could destabilize global currency markets by widening the gap between U.S. and German rates. IMBALANCE BLAMED FOR TURMOIL: Germany's key Lombard rate is 9.5%. The comparable U.S. rate is around 3%. Many experts blame the imbalance for the near collapse last week of the system that is supposed to link major European currencies to the German mark. The International Monetary Fund said Monday it would be "a real contribution" if the United States would not cut interest rates. FIRST UNION TO BUY DOMINION: First Union said Monday that it has agreed to buy Dominion Bankshares for $830 million, making Charlotte, N.C.-based First Union one of the nation's 10 biggest banks. By the time it completes its takeover of Roanoke, Va.-based Dominion next spring, First Union will have $61.3 billion in assets, moving it up to No. 9 from No. 11. BANKS SHOULD HOLD ON TO LOANS: In an effort to guard against discrimination in lending, banks should hold on to more of their mortgage loans instead of selling them on the secondary market, Federal Reserve Gov. Lawrence Lindsey said Monday. Many people living in low-income neighborhoods find it difficult to secure loans because institutions employ rigid criteria for making loans, according to Bloomberg Business News. BANKAMERICA TO ACQUIRE THRIFT: BankAmerica, the USA's second-largest bank company, will double its presence in Texas by acquiring that state's largest thrift, First Gibraltar. BankAmerica said Monday the deal would make it the fourth largest bank in Texas, based on deposits. BankAmerica will pay about $110 million for First Gibraltar's 130 branches and $7.5 billion in deposits. EXPERTS COOL TO GOLD PROPOSAL: Gold should play a greater role in calming world currency markets, President Bush believes. But many finance ministers and central bank presidents weren't enthusiastic about the idea at the annual meetings of the International Monetary Fund and World Bank Monday. The president surprised many with his suggestion to use a marketbasket of commodities to help determine currency values. EX-MERRILL LYNCH WORKER GUILTY: A former Merrill Lynch manager Monday pleaded guilty to illegally transferring funds, according to the U.S. Attorney's Office. Dennis Singh, the former Merrill employee, transferred $25 million to First Fidelity Bank in Newark, N.J., between December 1990 and June 1991. Merrill has recovered all but $100,000. FORMER EMPLOYEE MOVED FUNDS: Johnita Johnson, a former trust security operations employee at First Fidelity Bank in Newark, N.J., Monday pleaded guilty of illegally transferring funds from the bank. The case is separate from an illegal funds transfer from Merrill Lynch to the bank, in which a defendant pleaded guilty Monday. Johnson and Dennis Singh, the Merrill ex-employee, conspired with a Singh cousin, she said. SWEDEN DROPS INTEREST RATE: Sweden's central bank lowered a key interest rate from 500% to 50% Monday after the government and opposition leaders agreed to boost taxes and cut welfare further to reduce a huge budget deficit. The Riksbank raised its short-term rate for commercial banks to record highs Wednesday in an attempt to keep the Swedish krona from being devalued as investors fled to the German mark. TREASURY SELLS 3-MONTH BILLS: The Treasury Department sold $10.3 billion in three-month bills at an average discount rate of 2.91%, up from 2.89% last week. Another $10.3 billion was sold in six-month bills at an average discount rate of 2.93%, up from 2.90% last week. TREASURY BONDS ARE MIXED: The Dow Jones industrial average lost 6.22 points to 3320.83 Monday. The NASDAQ composite index fell 0.54 points to 588.58. The yield on 30-year Treasury bonds rose to 7.34% from 7.32%. The discount rate on three-month T-bills rose to 2.91% from 2.89%. Light sweet crude oil dipped 6 cents to $21.92 a barrel on the N.Y. Mercantile Exchange. GOLD, SILVER LOWER: Gold prices settled mostly lower Monday. On the New York Commodity Exchange, gold bullion for current delivery settled at $347.50 a troy ounce, down $3.70 from Friday. Republic National Bank said gold fell $3.50 an ounce to $347.50. On New York's Comex, silver bullion settled at $3.807 a troy ounce, down from $3.847 on Friday. In London the metal slipped to $3.81 an ounce from $3.82. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3320.83 Tuesday after closing down 6.22 Monday. The New York Stock Exchange composite opens at 231.89, down 0.50. The American Stock Exchange market value opens at 382.72, down 2.78. The NASDAQ OTC composite opens at 588.58, down 0.54. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Tuesday. It opens at 0.585 British pounds, up from 0.575; 5.076 French francs, down from 5.129; 1.484 German marks, down from 1.498; and 123.6 Japanese yen, down from 124.6. (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: 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