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, Nov 9 1992 Date: Mon, 9 Nov 92 04:44:15 EST Message-ID: 11-09 0000 DECISIONLINE: Banking & Economy USA TODAY Update Nov. 9, 1992 Source: USA TODAY:Gannett National Information Network EUROPE TRIES TO AVERT TRADE WAR: Europe appeared to blink over the weekend in its trade dispute with the United States. European Community diplomats told Reuters they'll reject a French request for a list of U.S. products that could be hit with tariffs. The European tariffs would have been in retaliation to U.S. plans - announced Thursday - for 200% tariffs on European imports, effective Dec. 5. TRADE TALKS TO RESUME: European Community leaders said European foreign ministers Monday will call for a quick resumption of U.S.-European trade talks. That reduces the likelihood of a trade war, which could gravely damage a global economy already weakened by recession. The talks failed last week and sparked a U.S. threat of imposing tariffs. S&L AGENCY HEAD TO QUIT: Timothy Ryan will step down as the nation's top savings-and-loan regulator Dec. 4. In 2 1:2 years as director of the Office of Thrift Supervision, Ryan oversaw the closing of 730 failed S&Ls in what he called "one of the nation's worst financial disasters." During Ryan's tenure, the troubled S&L industry shrank one-third, to 2,000 institutions from 3,000. UNEMPLOYMENT DIPS: The unemployment rate slipped to a six-month low of 7.4% in October, but the Labor Department says the drop came from teen-agers leaving the labor force to return to school, not because more people found jobs. The October rate, down from 7.5% in September, was the fourth consecutive improvement since the jobless rate hit an eight-year high of 7.8% in June. INSTALLMENT CREDIT RISES: Consumers increased credit purchases in September for the first time in eight months, the Federal Reserve says. That's a sign consumers are more optimistic. Installment credit, which includes credit-card charges, rose $1.6 billion to a seasonally adjusted annual growth rate of 2.7% after falling 1.9% in August. ICAHN'S TAX WOES CONTINUE: The Internal Revenue Service says Carl Icahn, the embattled owner of TWA, owes about $12.5 million in back taxes and penalties. The IRS says Icahn owes the government for deductions he took for losses on horse racing and on a business transaction the IRS says he made purely for tax benefits. Icahn has filed a protest. MORTGAGE RATES JUMP: Fixed mortgage rates jumped to 8.29% last week from 8.21% a week earlier, the Federal Home Loan Mortgage Corp. said Friday. One-year adjustable-rate mortgages are up to 5.17% vs. 5.12% last week, the agency reported. GM'S SATURN IS RISING: GM's Saturn division plans to open 80 dealerships the next year, and its assembly plant will start round-the-clock production in January to produce enough cars to supply them. General Motors planned the expansion long before Saturn sales took off, says spokeswoman Nanette Wiatr. GM WARNS OF LAYOFFS: General Motors warned Friday that it may be forced to lay off thousands of blue-collar workers enrolled in a jobs-bank program because the fund paying them is running dry. About 21,000 union workers are in GM's jobs-bank program, which reassigns workers who are idled by production cutbacks or productivity improvements to non-assembly jobs, at full salary. REGULATORS REJECT CAPITAL PLAN: Poughkeepsie Savings Bank said Friday thrift regulators rejected its capital plan and toughened capital requirements for the bank, Bloomberg Business News reports. The Office of Thrift Supervision said it plans to issue a capital directive that will require Poughkeepsie to file a revised capital plan. The bank will still be subject to some operational limitations and limited asset growth. GOLD, SILVER DECLINE: Gold prices declined worldwide Friday. On the New York Commodity Exchange, gold bullion for current delivery settled at $335.70 a troy ounce, off 50 cents from Thursday. Silver prices relinquished ground. On New York's Comex, silver bullion for current delivery settled at $3.872 a troy ounce, down from $3.926 on Thursday. DOW OPENS DOWN: The Dow Jones average of 30 industrials opens at 3240.06 Monday after closing down 3.78 Friday. The New York Stock Exchange composite opens at 230.09, down 0.28. The American Stock Exchange market value opens at 383.26, up 0.57. The NASDAQ OTC composite opens at 616.82, up 2.74. 24-HOUR TELEPHONE INFORMATION: USA TODAY Money Hot Line. 95 cents a minute. 1-900-555-5555. Banking & Economy Editor: Michele Coleman. (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