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, Aug 25 1992 Date: Tue, 25 Aug 92 04:24:46 EDT Message-ID: 08-25 0000 DECISIONLINE: Banking & Economy USA TODAY Update Aug. 25, 1992 Source: USA TODAY:Gannett National Information Network DOLLAR CONTINUES TO TUMBLE: The dollar's decline continued Monday, as the dollar hit an all-time low against the German mark. President Bush may be partly responsible. At the Republican convention, he promised an across-the-board tax cut, shaking up overseas investors and sending the dollar down Friday. Foreign investors worry that the government can't cut the budget, making them less likely to buy U.S. bonds. FOREIGN INVESTORS SHUN DOLLARS: Foreign investors less likely to buy U.S. stocks and bonds are also less likely to want U.S. dollars. That's why concern over the economy is helping push the dollar down against foreign currency. While U.S. taxpayers may listen, the promise from Bush of tax cuts "reminds (foreign investors) that this country is still running an irresponsible fiscal policy," says economist David Jones. CREDIT-CARD FRAUD LOSSES RISE: Banks' losses from credit-card fraud have tripled since 1986, according to Credit Card News. Last year, banks recorded $506 million annual losses, up from $318 million in 1990 and $207 million in 1989. The losses have increased every year since 1987, when they totaled $151 million. PHAR-MOR WILL COST OHIO BANCORP: Ohio Bancorp said Monday it expects to lose money because of Phar-Mor Inc.'s bankruptcy. Ohio Bancorp and its Dollar Savings and Trust Co. unit place their combined exposure to Phar-Mor at $11.6 million in loans. The bank also has $21 million in loans with individuals and companies linked to Phar-Mor, which declared Chapter 11 bankruptcy last week. NORTHEAST BANCORP FOR SALE: Northeast Bancorp has put itself up for sale, American Banker said Monday. The bank holding company last week restated second-quarter results to reflect a loss nearly double that originally stated. The loss was adjusted to $67.3 million, or $9.28 a share, from $39.9 million, or $5.49, as previously reported. Among bidders: Bank of Boston Corp. and Chase Manhattan Corp. FLEET FINANCIAL CFO TO RETIRE: Fleet Financial Group's chief financial officer, John W. Flynn, will retire June 30, 1993, the company announced Monday. Flynn, 53, also is the company's vice chairman. No successor was named, although Flynn said he will be involved in the decision. Spokesman Thomas L. Lavelle said that Fleet expects an announcement on Flynn's successor sometime next year. TAXPAYERS MIGHT GET TO CHARGE IT: Taxpayers will be able to pay their dues to Uncle Sam with their credit cards, opening a potential $300 billion market for issuers, if President Bush signs legislation now in Congress. But industry analysts and consumer advocates are questioning the decision to implicitly encourage more debt. "This is going to be a costly convenience," said Elgie Holstein of Bankcard Holders of America. SUPERFUND MAY BE CREATED: Investment expert JoAnn Price is trying to raise $250 million to create a superfund of investment capital for minority businesses. The money would be funneled to venture capitalists and other groups that would invest in promising minority businesses. Venture capitalists love it. The fund "would be cataclysmic," says Herbert Wilkins of Syndicated Communications Venture Partners. NASD CENSURES EX-EMPLOYEES: The National Association of Securities Dealers Monday censured and fined four former Dillon Securities Inc. employees. Spokane, Wash.-based Dillon has since closed. The four allegedly sold unregistered securities, the NASD said. The four brokers did not admit or deny guilt. The securities: penny stocks Smarty Pants Inc. and Cancer Quest Inc. Dillon closed four months ago. TREASURY SELLS THREE-MONTHS: The Treasury Department Monday sold $11.63 billion in three-month bills at an average discount rate of 3.14%, up from 3.10% last week and the highest auction rate in three weeks. It also sold $11.65 billion in six-month bills at 3.24%, up from 3.18% last week and also the highest since Aug. 3. DOW FALLS; GOLD, CRUDE UP: The Dow Jones industrial average dropped 25.93 points Monday to 3228.17. The NASDAQ composite index was down 8.31 points to 555.39. Yields on 30-year Treasury bonds climbed to 7.44% from 7.35%. The discount rate on three-month T-bills hit 3.14%, up from 3.07%. Comex gold was up $4.30 to $341.60. Light sweet crude oil rose 46 cents to $21.54 a barrel on the N.Y. Merc. GOLD CLIMBS: Gold prices climbed as the dollar continued to decline in value Monday. Gold is quoted in dollars. At the New York Commodity Exchange, gold for current delivery rose $4.30 a troy ounce to $341.60. Republic National Bank of New York quoted bullion at $341.60 at 4 p.m. ET, up $4.10 from Friday. Silver on the Comex was at $3.712, down 0.3%. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens Tuesday at 3228.17 after closing down 25.93 Monday. The New York Stock Exchange composite opens at 226.34, down 2.27. The American Stock Exchange market value opens at 380.90, down 3.41. The NASDAQ OTC composite opens at 555.39, down 8.31. DOLLAR OPENS DOWN OVERSEAS: The dollar opens down on Tuesday. It opens at 0.5023 British pounds, down from 0.5124; 4.8225 French francs, up from 4.8605; 1.4040 German marks, down from 1.4330; and 124.79 Japanese yen, down from 125.80. (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