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 22 1992 Date: Thu, 22 Oct 92 04:38:37 EDT Message-ID: 10-22 0000 DECISIONLINE: Banking & Economy USA TODAY Update Oct. 22, 1992 Source: USA TODAY:Gannett National Information Network GERMANY LETS INTEREST RATE FALL: Germany's central bank allowed a key money-market interest rate to fall to 8.75% from 8.90% Wednesday. That triggered interest rate cuts in Europe, but disappointed markets, which were expecting a deeper cut. Analysts say the Bundesbank's action was a sign it wants to soften its anti-inflation stance, which other European nations blame for nearly wrecking the European Monetary System. BOND MARKET TOO WORRIED: The bond market has been mourning the passing of Republican rule all month by driving up interest rates. On Wall Street, many worry that an era is ending. But most experts say that taxpayers probably will not have to bail out the government fund that pays off depositors when banks fail - a fund that is supposed to be financed by insurance premiums collected from banks. BUSINESSES GET A BREAK: The Securities and Exchange Commission has approved rules to make it easier for businesses to raise money. SEC Chairman Richard Breeden says the changes are part of its effort to meet President Bush's call to cut regulatory red tape. In July, the SEC loosened rules to make it simpler and cheaper for small businesses to tap stock and bond markets for cash. SEC EASES QUALIFICATIONS: The Securities and Exchange Commission's latest changes open its shelf registration process to more companies by simplifying paperwork and loosening qualification guidelines. In a shelf filing, a company fills out paperwork up to two years before securities are put up for sale, allowing it to issue securities when market conditions are favorable. SAVERS PULL OUT OF CDS: Because interest rates plummeted, savers have withdrawn $203.4 billion from certificates of deposit at banks or savings and loans the past year. According to Bank Rate Monitor and the Federal Reserve, there was just $907 billion in certificates of deposit in September 1992. That's a preliminary figure for the week ended Sept. 28. In September 1991: $1,111 billion. FBI PROBES CASH TRANSFER: The FBI is investigating allegations that Italian financier Giancarlo Parretti transferred cash and assets from MGM studios to other companies he controlled around the world before he was forced to give up control of MGM, Reuters says. Parretti borrowed heavily from French bank Credit Lyonnais to buy MGM for $1.3 billion from investor Kirk Kerkorian in 1990. CHEMICAL CONSOLIDATION GOING OK: Chemical Banking Corp. said Wednesday its consolidation with Manufacturers Hanover is on schedule. Peter Tobin, chief financial officer, said the nation's third-largest banking company is considering bidding on the ailing First City Bancorp of Texas if federal regulators close it. First City is accepting bids for 13 of its banks and may choose winning offers Thursday. CHEMICAL ADJUSTS BID APPROACH: Chemical Banking Corp. said Wednesday it is adjusting its bidding procedures as it eyes First City Bancorp of Texas. A bid for Howard Savings bank was "way off mark," according to chief financial officer Peter Tobin. Chemical had been quiet about other possible acquisitions until it was on solid footing with its consolidation with Manufacturers Hanover, now on schedule. LONG-TERM YIELDS FALL: The yield on 30-year Treasury bonds fell to 7.60% from 7.64% Wednesday. The discount rate on three-month Treasury bills dropped to 2.91% from 3.03%. Light sweet crude oil slipped 44 cents to $21.61 a barrel on the New York Mercantile Exchange. In Tokyo Wednesday, the Nikkei average fell 103 points to 17,039 in early trading. GOLD, SILVER UP: On the New York Commodity Exchange, gold bullion for current delivery settled at $344.10 a troy ounce Wednesday, up 30 cents from Tuesday. Also on New York's Comex, silver bullion settled at $3.790 a troy ounce, up from $3.778 on Tuesday. DOW JONES OPENS ON UPSWING: The Dow Jones average of 30 industrials opens at 3187.10 Thursday after closing up 1.08 Wednesday. The New York Stock Exchange composite opens at 228.60, up 0.02. The American Stock Exchange market value opens at 373.42, up 2.02. The NASDAQ OTC composite opens at 597.15, up 4.45. DOLLAR OPENS MIXED OVERSEAS: The dollar opens mostly down on Thursday. It opens at 0.6207 British pounds, up from 0.6160; 5.1350 French francs, down from 5.1445; 1.5132 German marks, down from 1.5190; and 121.80 Japanese yen, down from 122.35. (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