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 Mon, Sep 21 1992 Date: Mon, 21 Sep 92 04:39:57 EDT Message-ID: 09-21 0000 DECISIONLINE: Banking & Economy USA TODAY Update Sept. 21, 1992 Source: USA TODAY:Gannett National Information Network BUSH TO SIGN FREE TRADE PACT: President Bush Friday formally notified Congress that he intends to sign the free trade agreement just negotiated with Mexico and Canada, starting the clock ticking for congressional consideration of the pact. The trade treaty, concluded Aug. 12, would eliminate over 15 years any tariffs and other barriers to the flow of goods, services and investment among the three nations. FRANCE APPROVES UNITY TREATY: France's narrow approval of a European unity treaty may help calm global currency markets, but it won't solve the real problem: Every major industrialized nation's economy is struggling, and there is no sign that any will gain strength soon. "Recessions are rolling around the world," says economist Brian Wesbury. "It's like a scary game of dominoes with every economy taking its turn." (For more, see special Treaty package below.) G-7 SAYS LOWER INTEREST NEEDED: The Group of 7 Saturday agreed that lower interest rates are needed worldwide. Finance officials of the world's seven largest industrial countries met over the weekend. Both England and Germany want to lower interest rates said Norman Lamont, England's Chancellor of the Exchequer. But the right conditions, including low inflation, must first prevail, Lamont said. BRADY WANTS EVEN LOWER RATES: Treasury Secretary Nicholas Brady Saturday applied indirect pressure on Germany to further lower interest rates. He told a press conference at the Group of 7 meeting that "Europe is not growing as fast as it should. It's not growing as fast as Europeans want." The implication is that Germany's cutting interest rates again could help speed up European growth. PLYMOUTH BANK CLOSED: Massachusetts regulators Friday closed Plymouth Five Cent Savings Bank over continuing operating losses and high levels of bad loans. The bank lost $26.6 million between 1990 and 1991. That's $11.94 per share. The Federal Deposit Insurance Corp. was named receiver for the thrift holding company and approved the sale of Plymouth's operations to Citizens Bank of Massachusetts. O&Y PAYMENT PLAN APPROVED: A judge in Ontario, Canada, Friday approved a plan for Olympia & York Developments Ltd. to pay for its operation costs until the company's bankruptcy protection expires Dec. 30. Part of the company's operating and creditor committee costs will come from management fees for the buildings that creditors have for securities; some from marketable securities lenders. BANK FILES FOR RIGHTS OFFER: Independent Bank Corp. Friday filed a Securities and Exchange Commission statement for a rights offering and a community offering of common shares. Legg Mason Wood Walker Inc. is financial adviser. The company said it will use proceeds to boost capital levels back up to minimum levels for compliance. The bank holding company has not determined a price or the number of shares. THIRTY-YEAR MORTGAGES UNDER 8%: Thirty-year, fixed-rate mortgages averaged 7.89% this week, up from 7.84% last week, according to a national survey released Friday by the Federal Home Loan Mortgage Corp. It was the highest rate in two weeks but nevertheless marked the fifth time in six weeks that the rate has been less than 8%. For one-year adjustable-rates, lenders asked an average initial rate of 5.03%. FIRST UNION TO ACQUIRE MERITOR: First Union Corp. Fridayagreed to acquire Philadelphia-based Meritor Savings Bank's Florida unit for $46 million in cash, according to Bloomberg Business News. The acquisition, expected to close early in 1993, would bring the nation's 11th-largest bank holding company 29 offices in central Florida and 15 offices in Washington, D.C. Meritor's assets as of June 30 were $1.2 billion. SPECIAL PACKAGE ON TREATY: MAASTRICHT WON'T SOLVE PROBLEM: France narrowly approved the Maastricht treaty on Sunday. But that won't solve the fundamental problem afflicting global currency markets. Faced with troubles at home, global leaders aren't coordinating their fiscal and monetary policies. Germany, for example, has been driving up interest rates, while the United States has been lowering rates to boost its sluggish economy. GERMAN RATES MAKE IT HARD: Germany's stubbornly high interest rates have made it tough on many European nations trying to control exchange rates. Their currencies are supposed to be linked to the German mark. Last week, the system snapped. Great Britain's Bank of England was forced to abandon its attempt to defend the pound by jacking interest rates higher. Higher rates were strangling the British economy. GROWTH NEEDED AT GLOBAL LEVEL: Italy was forced to let its currency, the lira, find its own level in the currency markets. While the French vote may ease the European crisis, economists say something much bigger is needed to solve the world's problem: A return to global economic growth. But nobody knows when - or how - that will happen. Some experts aren't sure it will happen at all. (End of package.) DOLLAR UP AGAINST THE MARK: The Dow Jones industrial average climbed 11.53 points to 3327.05 Friday, up 21.35 points for the week. The NASDAQ composite index rose 1.30 points to 589.12. The yield on 30-year Treasury bonds fell to 7.32% from 7.33%. The discount rate on three-month Treasury bills fell to 2.87% from 2.89%. The dollar rose to 1.5035 marks from 1.4785 marks. GOLD, SILVER RISE: Gold prices rose Friday. At the Commodity Exchange in New York, gold for current delivery cost $351.20 an ounce, up $3.30 from Thursday. Republic National Bank of New York quoted $351.00 an ounce, up $3.25. Silver bullion rose in London to $3.82 a troy ounce, up from $3.80 bid late Thursday. On the Commodity Exchange in New York, silver brought $3.85 an ounce, up from $3.76 Thursday. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3327.05 Monday after closing up 11.35 Friday. The New York Stock Exchange composite opens at 232.39, up 1.42. The American Stock Exchange market value opens at 385.50, up 0.34. The NASDAQ OTC composite opens at 589.12, up 1.30. 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 downdate (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