Path: bloom-picayune.mit.edu!snorkelwacker.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, Oct 27 1992 Date: Tue, 27 Oct 92 04:59:45 EST Message-ID: 10-27 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 27, 1992 Source: USA TODAY:Gannett National Information Network GDP TO MARK EXPANSION'S START: Tuesday's report of third quarter gross domestic product is expected by virtually all economists to mark an important milestone - surpassing the level of goods and services that peaked in 1990. At that point, in economic parlance, the recovery will be officially over and the expansion will have begun. The economy peaked during the second quarter of 1990 at $4.9 trillion. GROWTH OUTNUMBERS DECLINE: Since the economy peaked during the second quarter of 1990 with the gross domestic product at $4.9 trillion, there have been three quarters of decline and six quarters of paltry growth. During the second quarter of this year, the gross domestic product totaled a seasonally adjusted rate of $4.89 trillion, which was just below the 1990 peak. The recession produced a 2.2% decline. PRE-OWNED HOME SALES FALL: Despite declining prices and the cheapest mortgages in nearly two decades, sales of previously owned homes fell in September to the lowest level since January, a real estate trade group reported Monday. The National Association of Realtors said sales dropped 0.9 percent to a seasonally adjusted annual rate of 3.28 million. That was down from 3.31 million in August. S&L INDUSTRY PROFITS SEEN: Timothy Ryan, director of the Office of Thrift Supervision, predicts the savings and loan industry will have record profits this year. Three years after the government began its bailout, Ryan says, about 2,000 S&Ls remain and 96% are profitable. Ryan says 730 S&Ls have been closed and he believes only 26 of those remaining will fail. FEAR OF BANK CRISIS OVERDONE: Top regulators say that while some large banks may collapse this year and failures will remain high through 1996, predictions of a banking crisis are overblown. Federal Reserve Governor John LaWare told the Senate Banking Committee a turnaround in the banking industry is well under way. NATIONSBANK, DEAN WITTER TEAM: NationsBank and Dean Witter Monday announced plans to jointly sell stocks, bonds and other investments to customers in NationsBank branches - the latest sign the boundary between banks and brokerages is blurring. The new company, to be based in NationsBank's hometown of Charlotte, N.C., will be called Nations Securities. NationsBank and Dean Witter will be 50-50 partners. HOLIDAY SPENDING STUCK: Holiday spending plans are stuck in the mud, two recent consumer surveys show. Shoppers say they plan to hold back on gift-buying again this year. But some retail watchers hope the election will jump-start consumer spending. An annual MasterCard Holiday survey found that of 1,000 cardholders, 49% plan to spend the same as last season, compared to 44% last year. BCCI DEPOSITORS LODGE CLAIMS: Former depositors of the Bank of Credit and Commerce International have lodged 16,500 claims with the U.K. Deposit Protection Board which reimburses part of the losses of bank depositors, Treasury Minister Anthony Nelson said Monday. Nelson said 5,500 of the claims are with the liquidators awaiting proof of debt forms to be lodged, Bloomberg Business News reported. GM CHAIRMAN RESIGNS: General Motors Corp. Chairman Robert Stempel resigned Monday amid persistent rumors the board of directors wanted him out because of his failure to act more swiftly to stem the automaker's continuing losses. GM has reported losses every quarter since his appointment and a third quarter loss of $845 million will be announced this week. GM will cut 74,000 hourly and salaried jobs. TREASURY SELLS SHORT BILLS: The Treasury Department sold $11.88 billion in three-month bills at an average discount rate of 2.97%, up from 2.94% last week. It sold $11.85 billion in six-month bills at an average discount rate of 3.22%, up from 3.10% last week. LONG-TERM YIELDS RISE: The yield on 30-year Treasury bonds rose to 7.67% from 7.63% Monday. The discount rate on three-month Treasury bills fell to 2.91% from 2.94%. Light sweet crude oil rose 8 cents to $21.27 a barrel on the New York Mercantile Exchange. GOLD, SILVER LOWER: In trading on the New York Commodity Exchange Monday, gold bullion for October delivery closed $2.50 lower at $341.10 a troy ounce. December silver settled 2.5 cents lower at $3.757 a troy ounce. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3244.11 Tuesday after closing up 36.47 Monday. The New York Stock Exchange composite opens at 229.78, up 1.95. The American Stock Exchange market value opens at 376.16, up 1.92. The NASDAQ OTC composite opens at 598.92, up 1.63. DOLLAR OPENS UP OVERSEAS: The dollar opens up on Friday. It opens at 0.6343 British pounds, up from 0.6182; 5.2290 French francs, up from 5.1845; 1.5420 German marks, up from 1.5290; and 122.20 Japanese yen, up from 121.95. (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