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 Thu, Oct 8 1992 Date: Thu, 8 Oct 92 04:25:12 EDT Message-ID: 10-08 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 8, 1992 Source: USA TODAY:Gannett National Information Network CONSUMERS REDUCE DEBT: Consumers reduced installment debt in August by 1.6% at a seasonally adjusted annual rate, the Federal Reserve said Wednesday. That follows a 1.8% decline in July. Consumers paid off a net $959 million in outstanding loans in August to cut installment debt for the seventh consecutive month and the 13th time in 16 months, the Fed said. OUTSTANDING REVOLVING LOANS UP: Revolving loans outstanding, which include credit cards, rose at a 2.8% annual rate in August, the Federal Reserve reported Wednesday. Auto loans fell by 0.2%; other loans fell 8.3%. That leaves consumer debt not secured by real estate at $720.9 billion, the lowest level since April 1990. VALUE OF WHOLESALE GOODS FALLS: The value of goods sold by wholesalers in August fell 0.6% to a seasonally adjusted annual rate of $150.8 billion, the Commerce Department said Wednesday. The decline followed a revised 2.4% increase in July. As sales weakened, inventories of unsold goods climbed 0.6%, the third straight increase. Continued inventory buildups could cause more production cuts, economists say. INVESTORS SELL BONDS: Investors continued to sell bonds Wednesday, pushing yields higher on growing fears that interest rates may have hit bottom. Pessimism in the bond market spilled into stocks. The Dow Jones industrial average fell 25.94 points to 3152.25, its lowest close of the year. MERGERS & ACQUISITIONS FALL: The number of cross-border mergers and acquisitions in publishing fell dramatically in the first six months of 1992, according to a study released by KPMG Peat Marwick. The figures analyze cross-border M&A trends in the publishing industry since 1989. In 1989, there were 106 acquisitions worth $5.4 billion. In the first six months this year, there were 23 worth $56 million. NATIONSBANK FLA. MERGER DONE: NationsBank said Wednesday it will complete the merger in NCNB and C&S in Florida, effective Thursday. The branches hardest-hit by Hurricane Andrew are operating and will convert on schedule, according to Gene Taylor, president of the Florida unit. NationsBank operates full-service banks in nine states and the District of Columbia. WESTPORT OFFERING IN EFFECT: Westport Bancorp Inc. Wednesday said the Securities and Exchange Commission declared its rights offering in effect. Westport Bancorp is the holding company for Westport Bank & Trust Co. Stockholders can purchase one additional share for every two shares owned as of Feb. 21. The rights offering is part of Wesport's recapitalization plan after a private stock placement. SECURITY PRINTING IS SWAMPED: While turmoil rocks world currency markets, hot times are brewing in another part of the currency universe - the usually dull-as-dirt security-printing industry. About a dozen companies, including two USA firms, craft and print currency, passports, stamps, stock certificates and other papers. The emergence of many countries recently has created a demand for specialized documents. EVERYTHING RISES: The yield on 30-year Treasury bonds rose to 7.48% from 7.41% Wednesday. The discount rate on three-month Treasury bills rose to 2.81% from 2.73%. The dollar rose against major currencies. Light sweet crude oil rose 8 cents to $21.89 a barrel. GOLD UP, SILVER MIXED: Gold prices rose Wednesday while silver was mixed. On the Commodity Exchange, gold bullion for current delivery rose 90 cents to $351.00. Republic National Bank said gold rose 60 cents to $350.60. Gold rose in London to $350.60, up from $350.25 bid. On the Comex, silver bullion for current delivery settled at $3.723, down from $3.733. Silver bullion was unchanged in London at $3.75. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3152.25 Thursday after closing down 25.94 Wednesday. The New York Stock Exchange composite opens at 222.84, down 1.25. The American Stock Exchange market value opens at 366.88, down 0.83. The NASDAQ OTC composite opens at 569.20, down 1.35. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly up on Thursday. It opens at 0.5838 British pounds, down from 0.5861; 4.9060 French francs, up from 4.8485; 1.4470 German marks, up from 1.4304; and 120.27 Japanese yen, up from 119.83. (As of 3 p.m. Wednesday. 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