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, Oct 16 1992 Date: Fri, 16 Oct 92 08:02:01 EDT Message-ID: 10-16 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 16-18, 1992 Source: USA TODAY:Gannett National Information Network GERMANY LEAVES RATES ALONE: Germany's central bank left its key interest rates unchanged Thursday despite international pressure to reduce them. Germany's trading partners have encouraged Germany to lower its rates because they are higher than rates in many other Western countries and are supposedly luring investment there from the other countries. Germany has defended its policy on rates by citing inflation fears. INFLATION REMAINS LOW: Inflation continues to be the only dependable bright spot in a sluggish economy. Consumer prices inched up 0.2% last month after rising 0.3% in August, the Bureau of Labor Statistics said Thursday. Other reports out Thursday portrayed a still struggling economic recovery. Highlight: The first nine months, inflation measured by the consumer price index ran at a 2.9% annual rate. USED CARS, PRODUCE MORE COSTLY: If the rate of inflation - 2.9% for the first nine months of the year - continues through December, this year would boast the lowest inflation since the 1.1% in 1986. Last year, prices rose 3.1%, according to a Bureau of Labor Statistics report out Thursday. The biggest price hikes in September: 1.1% on used cars, 2.1% on fruits and vegetables and 0.6% for doctor visits. SEC ADOPTS EXEC PAY RULES: The Securities and Exchange Commission Thursday adopted rules requiring clearer explanations of how much top corporate executives get paid. Companies will have to include charts in their proxy statements detailing all compensation executives get over three years. Companies also have to disclose the compensation of their chief executives and the four highest-paid execs over $100,000. COMMUNICATION RULES EASED: The Securities and Exchange Commission Thursday passed rules allowing shareholders to communicate with more than 10 other shareholders without getting written permission. The new rule also lifts limitations on spoken shareholder communications unless the shareholders own more than a $5 million stake in the company. They must mail the text of their talk to the SEC in three days. ASSOCIATION EXPELS FIVE FIRMS: The National Association of Securities Dealers Inc. Thursday said it expelled five firms for not paying fines and costs for securities violations. They were: Baring & Brown Inc.; Dow, Owen & Co.; New Century Securities Inc.; RCL Northwest Inc.; and Texas Independent Securities Inc. The NASD suspended Windsor IBC Inc. and registered principal Mary Martin for unfairly pricing common stock. IBM RESULTS SEND STOCK REELING: IBM Thursday reported hugely disappointing third-quarter results, sending its stock and the broader stock market reeling Thursday. The computer giant said it had a net loss of $2.78 billion, or $4.87 per share, compared to a profit of $177 million, or 31 cents per share, a year earlier. Revenues rose 2% to $14.7 billion from $14.4 billion. BOSTON FIVE REPORTS MORTGAGES: The Boston Five Bancorp Inc. Thursday reported that its subsidiary, The Boston Five Cents Savings Bank FSB, had residential mortgage production for the month and 11 months ending Sept. 30, totaling $140.3 million and $1.4 billion, respectively. For the same periods in 1991, The Boston Five originated residential mortgages totaling $86.9 million and $922.1 million, respectively. GOLD FALLS, SILVER MIXED: Gold prices fell Thursday. On the New York Commodity Exchange, gold bullion settled at $341.00 a troy ounce, off $1.80 from Wednesday. Republic National Bank said gold fell $1.75 an ounce to $341.00. On New York's Comex, silver bullion fell to $3.685 a troy ounce, down from $3.688 on Wednesday. Silver bullion rose in London to $3.73 a troy ounce, from $3.71 bid late Wednesday. LONG-TERM BOND YIELDS UP: The yield on 30-year Treasury bonds rose to 7.50% from 7.49% Thursday. The discount rate on three-month Treasury bills fell to 2.91% from 2.93%. Light sweet crude oil rose 25 cents to $22.33 a barrel on the New York Mercantile Exchange in anticipation of a cold winter. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3174.68 Friday after closing down 20.80 Thursday. The New York Stock Exchange composite opens at 225.54, up 0.15. The American Stock Exchange market value opens at 365.63, down 0.54. The NASDAQ OTC composite opens at 578.64, up 2.42. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Friday. It opens at 0.5898 British pounds, up from 0.5870; 4.9330 French francs, down from 4.9640; 1.4525 German marks, down from 1.4635; and 120.25 Japanese yen, down from 121.18. (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