Path: bloom-picayune.mit.edu!enterpoop.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, Nov 2 1992 Date: Mon, 2 Nov 92 04:47:35 EST Message-ID: Lines: 114 11-02 0000 DECISIONLINE: Banking & Economy USA TODAY Update Nov. 2, 1992 Source: USA TODAY:Gannett National Information Network FDIC SEIZES TEXAS BANKS: First City Bancorporation, which owns 20 Texas banks hurt by bad loans, was declared insolvent Friday. Regulators say First City is the largest bank failure this year and the eighth largest ever. Sen. Don Riegle, D-Mich., says the failure is the second time the bank has been bailed out. In 1988, the Federal Deposit Insurance Corp. gave First City $977 million to protect depositor money. BANKS TO REOPEN MONDAY: The banks of First City Bancorporation - declared insolvent on Friday - will reopen Monday. They'll be under the control of the government until a buyer is found. The Federal Deposit Insurance Corp. will guarantee 80% of deposits that exceed $100,000 at four of the 20 banks. The agency said the banks were in Houston, Austin, Dallas and San Antonio. BUSH GRANTS THRIFTS EXTENSION: Savings and loan institutions have been granted extra time to sell their real estate subsidiaries by a law signed by President Bush Friday. A 1989 banking law required thrifts to deduct their investments in real estate subsidiaries from their capital by July 1, 1994, and cut 40% by November of this year. The new law extends the 40% deadline to Jan. 1, 1993. THRIFT CO. TAKES OVER BANK: The Resolution Trust Company Friday took over San Francisco-based Homestead Savings. Deposits still are federally insured. Homestead had $1.61 billion assets and $1.55 billion liabilities. The newly created Homestead Federal Savings Association will assume all deposits and some assets and liabilities of Homestead Savings. The RTC will negotiate a permanent resolution for the thrift. JAPAN BANKS SET UP COMPANY: The Japanese banking industry announced plans Friday to start its own company to liquidate hundreds of billions of dollars in bad loans made during the speculative boom of the 1980s. But analysts and industry insiders said they doubt a rescue funded only by the banks themselves would end the financial crisis. The debt mess, they said, will eventually require government intervention. NEW-HOME SALES SLIDE: Sales of new homes fell in September for the first time in five months, the government said Friday, but analysts predicted sales would increase modestly the rest of the year. Many also said the government's report of a 1% decline was suspect because its preliminary estimates have consistently underreported actual activity this year and subsequently were revised upward. CONSUMER CONFIDENCE LESSENS: Consumer confidence weakened in October, according to a survey by the University of Michigan. The university's consumer-sentiment index slid to 73.3 from 75.6 in October. The index's base is 100, set in 1966. Analysts say consumers are uncertain about the outcome of Tuesday's election. USA, EUROPE TRY AGAIN: The USA and the European Community on Friday scheduled a weekend round of negotiations to try to resolve a nagging dispute over cuts in farm subsidies before the presidential election. Agriculture Edward Madigan met Sunday with his counterpart Ray MacSharry to discuss the latest offers to settle the fight in international trade talks. STOCK MARKET WILL RISE: Analysts said Friday the stock market will rise next week regardless of who is elected president. Recent polls show Democrat Bill Clinton in the lead despite signs that President Bush is narrowing the gap. "The stock market does quite well under the Democrats," according to finance professor Jeremy Siegel at the Wharton School of the University of Pennsylvania. LONG-TERM YIELDS RISE: The yield on 30-year Treasury bonds rose to 7.62% from 7.57% Friday. The discount rate on three-month Treasury bills rose to 2.96% from 2.94%. On the New York Mercantile Exchange: Platinum rose 50 cents to $354.20 an ounce. Light sweet crude oil lost 9 cents to $20.62 a barrel. GOLD DOWN, SILVER DOWN: In Friday trading on the New York Commodity Exchange, gold bullion for current delivery settled at $339.40 a troy ounce, off 10 cents from Thursday. Republic National Bank said gold slipped 50 cents an ounce to a late bid price of $339.50. On New York's Comex, silver bullion for current delivery settled at $3.751 a troy ounce, down slightly from $3.752 on Thursday. DOW JONES OPENS ON DOWNSWING: The Dow Jones average of 30 industrials opens at 3226.28 Monday after closing down 19.99 Friday. The New York Stock Exchange composite opens at 230.57, down 0.85. The American Stock Exchange market value opens at 381.29, up 2.29. The NASDAQ OTC composite opens at 605.17, down 0.65. 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