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, Nov 10 1992 Date: Tue, 10 Nov 92 05:07:26 EST Message-ID: 11-10 0000 DECISIONLINE: Banking & Economy USA TODAY Update Nov. 10, 1992 Source: USA TODAY:Gannett National Information Network GOVERNMENT TO SELL BONDS: The government Tuesday and Thursday will sell investors a pile of 10-year notes and 30-year bonds in a market that has been weak since Labor Day. The weak market probably means big investors will be shy about buying. The upshot is that long-term interest rates, which are set by the bond market and have been rising, may go higher still. LONG-TERM RATES COULD RISE: Because of the government's sale of 10-year notes and 30-year bonds, long-term interest rates may go higher still. That's welcome news for savers because bank CD and money market rates, though not directly influenced by the bond market, have been creeping higher, too. BUY MUNICIPAL BONDS: Financial planners may soon offer a bit of post-election advice: President-elect Clinton is raising taxes, so buy municipal bonds. They are exempt from federal income tax and from state tax in most states where the bonds are issued. In a survey of securities brokers, 56% say taxes are going up; 73% say they will recommend municipal bonds to their clients. CREDIT CARDS STOCKS STILL HOT: Even with competition heating up and rates lower than ever, the credit card business can still be very good, according to Al Lerner, chief executive officer of MBNA. MBNA is the USA's third-largest issuer of MasterCard and Visa Cards. Last month, Lerner bought 500,000 shares of MBNA, his first purchase in nearly two years. EC WANTS TALKS TO RESUME: The 12 European Community foreign ministers agreed Monday that talks with the USA on farm subsidies should resume immediately to head off the risk of a transatlantic trade war. But the ministers also agreed the EC should retaliate if the USA carries out its threat to slap 200% tariffs on white wine and other EC imports Dec. 5, German Economics Minister Juergen Moellemann told reporters. EC MAY DRAFT TARIFF LIST: The foreign ministers of the European Community Monday suggested that its executive commission draft a list of U.S. goods to be targeted for trade sanctions. The Bush administration vowed to raise tariffs after the USA and the EC couldn't break an impasse over EC farm subsidies. The USA says the subsidies violate a 30-year-old agreement giving U.S. farmers access to European markets. SEC SUSPENDS TRADING: The Securities and Exchange Commission Monday temporarily suspended trading in Members Service Corp. shares. Trading was suspended because of questions over the adequacy and accuracy of publicly disseminated securities and how the company sold or distributed the securities. The company's chairman said the company had not done anything wrong. FOUR DEALERS ARE DISCIPLINED: The National Association of Securities Dealers Inc. Monday took disciplinary steps against four firms: Wakefield Financial Corp., Kelly Trading Corp., Bagley Securities Inc. and Royce Park Investments Inc. Wakefield and Kelly for scheming to alter trading in Weaver Arms Corp.; Bagley for trading in Quantus Capital Inc.; and Royce for trading dominance in an offering of LBO Capital Corp. STOLEN STOCKS DECREASE: The Securities and Exchange Commission said Monday the amount of stocks reported to its lost and stolen securities program decreased by 10% in 1991, according to Bloomberg Business News. The aggregate dollar value of certificates reported as lost, stolen, missing or counterfeit totaled $2.331 million in 1991, down from 1990's $2.6 million. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3240.87 Tuesday after closing up 0.81 Monday. The New York Stock Exchange composite opens at 230.634, up 0.54. The American Stock Exchange market value opens at 385.36, up 2.10. The NASDAQ OTC composite opens at 622.05, up 5.23. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mixed on Tuesday. It opens at 0.6612 British pounds, up from 0.6538; 5.3935 French francs, down from 5.3960; 1.5963 German marks, down from 1.5967; and 124.10 Japanese yen, up from 123.43. (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