US Banker articles from September 2005

US Banker archives from September 2005

Editor's Note.
September 1, 2005... In "The Long, Lonely Battle of David E. Welch" (August 2005), U.S. Banker incorrectly identified the New York-based law firm of Orick, Herrington & Sutcliffe. USB regrets the error. (c) 2005 U.S. Banker and SourceMedia, Inc. All Rights...

Paying the Price for Overpaying Executives: The flap didn't start with Richard Grasso, Philip Purcell or Sandy Weill. But elements of all three men's cases have proved valuable in getting boards to consider whether executive pay is over the top.
September 1, 2005... Boards of directors have a lot to fret over, not the least of which is their potential personal liability for decisions construed by shareholders to be inconsistent with the board's fiduciary responsibility. Nowhere has this played out more...

Compensation: BofA Shares the Wealth With Its Rank and File: A bonus plan for those earning under $100,000.(Bank of America )
September 1, 2005... Bank of America is rock-ing the industry with its announcement of an employee-incentive plan that observers call bold and that could well prompt other banks to follow suit. The bank's key goals: employee motivation and retention. The plan,...

Scene and Heard.(Brief Article)
September 1, 2005... "It helps people realize that their life is their most important asset." Tom Kennedy, president of Hingham-MA-based Ultimate Gift Experience on a new values-based advisory process his firm advocates. "It's easy to paint banks as the...

Bad Debt: As Prices Spike, Supply Tightens: A frenzy of new buyers is also shaking up the market.
September 1, 2005... Banks selling off bad consumer debt have enjoyed steep price increases over the past year. But in a cyclical business dependent on interest rates, the precise repercussion of those increases is up for debate. Prices have jumped about 10...

Litigation: Risk-Based Loan Pricing Looms as Legal Nightmare: Is new Wells suit an omen of industry onslaught?
September 1, 2005... Wells Fargo's mortgage-lending practices are under scrutiny, as the nation's second-largest home lender was hit with a lawsuit in Los Angeles alleging that branches in minority neighborhoods don't offer the same discounts as those in white...

Hits and Has-Beens.(MetLife Bank appoints Donnalee A. DeMaio)(HSBC Holdings PLC appoints Ian Cohen )(Juniper Bank appoints Richard Sommers )
September 1, 2005... MetLife has named Donnalee A. DeMaio (right) president of MetLife Bank. DeMaio had been CFO. She replaces Shailendra Ghorpade, who joins the bank's International Operations division. Ian Cohen (below) has been named HSBC's global equities...

Fresh Ink.(TD Banknorth acquires Hudson Bancorp)(Zions Bancorp plans to buy Amegy Bancorp)(BancorpSouth acquires American State Bank Corp)(Brief Article)
September 1, 2005... 1. TD Banknorth agreed to buy Hudson Bancorp for $1.9 billion in cash and stock. The move strengthens TD's presence in Connecticut and eastern New York, while providing a new presence in the New Jersey and Philadelphia markets. The deal is...

Institutional Investors Hound Morgan Over Executive Pay.
September 1, 2005... It was only a matter of time, wasn't it? The Central Laborers' Pension Fund, which holds more than 7,000 shares of Morgan Stanley stock, has sued the huge investment bank's directors, claiming they squandered corporate funds through "grotesque...

Noted and Noteworthy.(Matsumura's EXC-5700 bill detector to prevent counterfeiting currency)(State Savings Bank new marketing strategy)(Brief Article)
September 1, 2005... Even though counterfeiters can now create near-perfect U.S. currency, a new Japanese detector can find it in less than a second. Matsumura's EXC-5700 bill detector scans a U.S. bill in about 0.7 seconds with a detection rate of 99.999 percent....

Ensuring BSA Rules Can't Be Ducked: After a year of fits and starts on BSA enforcement, FinCEN and the five bank regulators are working in concert to ensure fairer implementation of AML regulations. Is it enough?(Bank Secrecy Act )
September 1, 2005... Is it possible that federal regulators and the Financial Crimes Enforcement Network are finally cooperating to get their ducks in a row on money-laundering prosecutions? A number of new developments this summer suggest that they are. After...

As HSAs Multiply, So Do Vendors: With a market predicted to surpass that of 401(k)s, health savings accounts are becoming the hottest commodity. But the most important decision? Which technology to use.
September 1, 2005... Got milk? In a few years, health savings accounts, or HSAs, will be a fundamental banking product, a staple, like milk in a grocery store, says John Reynolds, svp and business director for Wells Fargo's health-benefits service. Right now,...

Native Americans Are Catching Banks' Eye: Only 2.8 million Americans claim to be full-blooded natives, but this group's growing financial needs are attracting banks. A key component for success? Trustworthiness.
September 1, 2005... Ask Bob Bryce what a salmon ceremony is, and he'll tell you. The president of Snohomish, WA-based First Heritage Bank has attended several of the events, which the Tulalip Native American tribe performs yearly to commemorate the arrival of the...

AD Beat: Branded Content Helps Bank Of New York Strike Hip Pose: The New York bank is partnering with New York City to sponsor a cable entertainment show. It also has a cameo role. Who knew a 221-year-old bank could act so young?
September 1, 2005... When the Bank of New York's advertising agency heard about New York City mayor Michael Bloomberg's plan to reinvigorate its public relations message, it was a classic light-bulb moment. "We thought it was a wonderful opportunity for our...

How Banks Can Keep Their Cool In a Heated Summer of E-Fraud: Technology, once believed to be a fraud stopper, may be helping scammers better play their hand. But banks need more than just software to fight the problem.(Maureen McCarthy)(Interview)
September 1, 2005... For IT executives in charge of keeping customers and their data secure when just about every news report brings word of another breach, the landscape surveyed by Maureen McCarthy must seem awfully familiar-or maybe just awful. The director...

Turf War: The banking and real estate lobbyists are ready to square off once again over banks selling real estate, an irony given that banks' ambivalence remains strong. But for one small Virginia maverick, selling real estate since January, business is booming.(Financial Services Modernization Act of 1999)
September 1, 2005... Lobbyists have been angling to enable banks to sell real estate for six years, ever since the Gramm-Leach-Bliley Act opened the door for banks to offer more financial products. But real estate brokerage has eluded banks, which have been stymied...

Designing an [Optimal ] Capital Structure: Nimble capital management can help non-Basel II-adopting banks level the competitive playing field.(Financial Accounting Standards Board)
September 1, 2005... A number of developments in the past few years have dramatically changed the framework for evaluating capital structure alternatives for U.S. insured depository institutions of all sizes. First, the implementation of Financial Accounting...

Working Like a Dog To be Top Dog: The top five investment banks racked up $124.83 billion worth of deals in 20 transactions through June. That's 40 percent less than the $207 billion achieved in the same period last year.(Keefe, Bruyette & Woods Inc.)(UBS Securities Inc.)(Morgan Stanley)(Brief Article)
September 1, 2005... The biggest mid-year M&A dealmaker is the company that could: Keefe, Bruyette & Woods. Fully employee-owned, the 43-year-old KBW claims to be the largest full-service investment bank specializing exclusively in the financial services sector. As...

Top 50 Advisors by Deal Value: Bank & Thrift Mergers through June 30, 2005.(Illustration)
September 1, 2005... Ranked by announced deal value* Announced Deal Number Rank Firm Value(in million) of Deals 1 Keefe, Bruyette & Woods 36,531.7 ...

Top Firms By Region.(financial services )(deals)(Brief Article)(Illustration)
September 1, 2005... Announced Deal Value Total Rank Firm (In million) Deals NORTHEAST 1 Boenning & Scattergood 167.1 2 2 Blackstone...

Top 25 Advisors' Fees: Bank & Thrift Mergers through June 30, 2005 Ranked by deal price at completion.(Illustration)
September 1, 2005... (part 1 of 3) Rank Buyer Target 1 TD Bank Financial Group Banknorth Group 2 Fifth Third Bancorp First National Bankshares of Florida 3 Sovereign...

Building a Bridge Through Silicon Valley: Bridge Bank means business, and CEO Dan Myers is just the guy to enforce that belief. That explains why just more than four years later the startup bank has $498.5 million in assets-and counting.(Bridge Bank of Silicon Valley)
September 1, 2005... Most bankers probably would have passed on the opportunity to start a business bank in Silicon Valley in 2001. But the founders of Bridge Bank, including president and CEO Dan Myers, saw just that: opportunity. Myers says the region's deposits...

Growth If By Land, Not If By Sea: Many banks pair RV and marine financing in one line of business. But one may be leaving the other in its dust.(banks giving loans for recreation vehicles and marine vehicles)
September 1, 2005... As the economy blossoms and more high-net-worth investors consider luxury purchases, the recreational vehicle and marine market are tempting banks that want to expand their loan portfolios. But is now the right time? About 70 percent of...

Arming Veterans With Better SBA Financing: Veterans have many of the skills required to be successful business owners. Now they're getting more help from The Veterans Corp. and SBA programs so they can achieve their goals.(Small Business Administration)
September 1, 2005... The Small Business Administration is expanding a program to help veterans who want to start their own businesses. Created under President Bill Clinton, the program is being reinvigorated as part of President Bush's goal to provide more help to...

On-Balance-Sheet Accounts Solve Deposit Quandary: As deposit growth slows, banks are turning to the newest version of a sweep account, which keeps the cash on their balance sheets. And that means everybody wins.(Lubbock, Texas-based City Bank)
September 1, 2005... When Lubbock, TX-based City Bank was deciding how to boost its deposit levels, COO Cory Newsom says it turned to a new type of sweep account offered by Reserve Funds, which specializes in retail money-market mutual funds. Sweep accounts...

Coming to a Theater Near You: 'Grandfather's Legacy': A values-based novel, The Ultimate Gift, is emerging as an advisors' tool to nurture clients in creating a legacy for family through video, scrapbook and other medium. For a fee, of course.(Financial Planning Association introduced pilot program)
September 1, 2005... What is the price tag on helping clients get a life? For the client who already owns everything money can buy, help with articulating his values and life story for future generations may be the utmost advisor service. In fact, just undergoing...

U.S. Banker Advertising Contacts.(Brief Article)(Directory)
September 1, 2005... GROUP PUBLISHER David Cleworth 27700 Pine Point Drive Wesley Chapel, FL 33543 Tel: 813.929.6907 Fax: 813.929.6908 Outside the U.S. Please contact the Publisher U.S. BANKER ACCOUNT REPRESENTATIVES ...

With Asset Prices So High, Where's the FOMC?: The Fed Committee is the key decision-maker when it comes to interest rate fluctuations. But where is its place when a potential market bubble in real estate is on the horizon? Perhaps on the sidelines.(Federal Open Market Committee)(Column)
September 1, 2005... Are asset prices, which are fueled by higher profits and productivity, climbing too far too fast? Do they signal the approach of an unsustainable boom that the Federal Open Market Committee should stop? Bubbles are hard to spot beforehand, and...

Moving On From 'Walking Rates'.(deposit pricing of banking industry)
September 1, 2005... "Dead reckoning" was used for centuries to crudely guide sailors from port to port. Navigators plotted their last known position and then guessed their current location from nautical speed and elapsed time. The problem was that ships did not...

Training to Hit Maximum ROI.(Return on investment)(by giving training to employees)
September 1, 2005... You've developed the perfect marketing campaign based on research and customer needs. You know it will help your bank increase revenues and grow accounts. There is no doubt it will be a success. Or is there? If you don't have a targeted...