American Banker articles from December 2002

American Banker archives from December 2002

Cramming for Sarbanes-Oxley: Powell mulls broader use as boards brush up.
December 2, 2002... Director education is looking like a growth industry. Since Congress' passing of the Sarbanes-Oxley Act in the summer, community bank directors have been hitting the books and conference halls to bone up on the law, which put tougher...

Chase Unit Advances in Prefab War Of Attrition: Deal with Fleetwood adds heft in market others have deserted.(Chase Manhattan Mortgage Corp.)
December 2, 2002... Chase Manhattan Mortgage Corp. underscored last week its growing muscle in a market many lenders have fled -- manufactured housing finance. An alliance announced Wednesday with Fleetwood Enterprises Inc. further strengthens the J.P. Morgan...

TODAY'S NEWS.
December 2, 2002... Puerto Rican banking companies have increased market share on their home turf as some mainland competitors have pulled back. Page 2 WASHINGTON Page 4 COMMUNITY BANKING Sobieski Bancorp's president and CEO resigned in the wake of a...

Fed May Ease Limits on Card Marketing.
December 2, 2002... Ever since Discover Financial Services and Bank of America Corp. started shipping their newfangled credit cards to customers, other issuers have had to weigh the merits of matching the move. The decision has been about more than cost:...

Privacy Isn't Only Concern In Fair Credit Renewal Fight.
December 2, 2002... Bankers considering their political problems may not have noticed this one: Congressional action next year -- or, inaction, as the case may be -- may clobber credit quality controls. Lenders say the databases they rely on to assess...

Executive Changes.(several banking industry appointment briefs)
December 2, 2002... MIDDLE ATLANTIC Mellon Financial Corp. has hired Peter F. Culver as the senior director of its private wealth management group. He will help high-net-worth customers in the New York and Connecticut markets develop wealth management...

Puerto Rico Banks See Room to Grow at Home.
December 2, 2002... Puerto Rican banking companies, which have always had to compete with players from elsewhere for Puerto Rican customers, say they have managed to increase market share in recent years. And executives at two small homegrown companies, First...

Washington People.
December 2, 2002... Big Turnout A Who's Who of the two congressional committees in charge of financial services at the White House turned out last week to see President Bush sign the Terrorism Risk Insurance Act. Standing behind the President on Tuesday...

Sobieski CEO Quits in Wake of Scandal.(Thomas F. Gruber departs from Sobieski Bancorp)(Brief Article)
December 2, 2002... Sobieski Bancorp Inc.'s president and chief executive officer resigned Wednesday, his six-year tenure ended by a loan fraud perpetrated by a former loan officer. Chairman Robert J. Urbanski said the board of the $143 million-asset...

Pulse Pulls Plug on MasterCard Switch Deal.
December 2, 2002... The unexpected alliance between MasterCard International and Pulse EFT Association has yielded yet another surprise -- its collapse. The agreement, reached in February, would have made MasterCard International the switching operator for...

In Brief: SEI Investments Develops Charitable Giving Package.(Brief Article)
December 2, 2002... SEI Investments has introduced a philanthropy program to help financial advisers at banks, brokerages, and financial planning firms. The philanthropy program has three tiers, the company said last Monday: donor education material,...

In Brief: Julius Baer in Joint Venture To Start Italy Private Bank.(Julius Baer Holding Ltd., Credito Valtellinese to set up Julius Baer Creval Private Banking SpA)(Brief Article)
December 2, 2002... Julius Baer Holding Ltd. has announced an agreement to establish a private banking group in Italy. Julius Baer and the Italian banking group Credito Valtellinese, Sondrio agreed on Nov. 20 to set up a jointly owned company, Julius Baer...

In Brief: Florida Starts Low-Minimum 529 College Savings Plan.(Brief Article)
December 2, 2002... Florida has launched a second college savings plan, in which accounts can be opened with just $25 and no residency requirement is imposed. It started the Florida College Investment Plan, a Section 529 tax-exempt program, on Nov. 18....

Small N.Y. Insurer Selling Life Coverage Downscale.(Brief Article)
December 2, 2002... M. Nasim Ali of SBLI USA Mutual Life Insurance Co. Inc. explains his marketing strategy by quoting a statistic: 40% of Americans have no life insurance. "Those are the people we want to reach," said the executive vice president, marketing...

Preferred Issues: Financing Pro Sports No Longer Just a Niche.(Brief Article)
December 2, 2002... An explosion of growth in professional sports in the past decade -- and the money sports brings in and pours out -- has created demand for more sophisticated bank financing, and a handful of large banks are cashing in on the trend. Bank of...

Fed Banks Report Tepid Nov. Growth.
December 2, 2002... The Federal Reserve Board's latest survey of economic conditions found signs of slow growth since its last survey but may do little to quell concerns about the fragile state of the economic recovery. Macroeconomic figures for the third...

A Dip in Private Insurance Sales.
December 2, 2002... Private mortgage insurers wrote 186,361 policies in October, 3.4% fewer than in September, according to the Mortgage Insurance Companies of America.The policies covered $26.8 billion of low-down-payment mortgages, 3.6% less than in...

B of A to Go National with Online Check Imaging.(Bank of America Corp.)
December 2, 2002... Bank of America Corp. has made digital images of checks and deposit slips available online to customers in Georgia and Tennessee and plans to introduce the service nationally by March. At least one other major banking company, Wachovia...

N.Y. Bank Fined $4M for Money-Laundering Laxity.(Broadway National Bank)
December 2, 2002... In its first prosecution of a bank for failing to establish an adequate anti-money-laundering program, the U.S. District Court in Manhattan fined Broadway National Bank $4 million on all three counts of a felony indictment. Broadway...

Corrections.(Correction Notice)
December 2, 2002... In the Nov. 26 issue, "Immigrants Make Up Big, But Ignored, Niche" on page 5 misspelled the first name of the head of the Pew Hispanic Center. He is Roberto Suro. In the Nov. 27 issue, "Cards, Foreign Operations Dent Strong Quarter" on...

In Brief: Bank Dip in Post-Thanksgiving Trading.(Brief Article)
December 2, 2002... Bank stocks lost ground Friday in an abbreviated post-holiday session as the broader market gave up some recent gains. Banks Dip in Post-Thanksgiving Trading The American Banker index of the top 50 banks slipped 0.51% in the lackluster...

In Brief: J.P. Morgan Partners Closes $6.8B Fund.(Brief Article)
December 2, 2002... J.P. Morgan Partners held a final close on its latest fund, of nearly $6.8 billion, on Monday. The private equity arm of J.P. Morgan Chase & Co. raised $1.7 billion from institutional and high-net-worth investors for its J.P. Morgan...

In Brief: Salomon Drops National Financial IPO Bid.(Brief Article)
December 2, 2002... Citigroup Inc.'s Salomon Smith Barney unit has withdrawn its bid to underwrite the initial public offering of the New York financial services firm National Financial Partners because of conflict-of-interest concerns. Sanford I. Weill,...

ACH Shakeout: Two Players Retrenching: Visa quits processing, Nacha shelves 'Action'.
December 3, 2002... Visa U.S.A. is quitting the automated clearing house processing business, after a string of price cuts from the Federal Reserve Board's market-dominant service apparently left it unable -- or unwilling -- to compete. Visa's exit, to be...

TODAY'S NEWS.(Brief Article)
December 3, 2002... Institutional investors have been demanding higher rates on corporate loans for months, and the gap between what they and banks charge is near historic highs. Page 2 Fleet National Bank has outsourced its mortgage processing, closing, and...

OCC: States' Enforcers Subject to Preemption.
December 3, 2002... As state attorneys general push their investigations of national banks, the Office of the Comptroller of the Currency is pushing back. In a five-page missive dated Nov. 29, the federal regulator asserts its jurisdiction over everything to...

In Small-Lender Outreach, Freddie Hugs Credit Unions.
December 3, 2002... In the latest move by a government-sponsored loan buyer to firm up relationships with smaller lenders, Freddie Mac has allied itself with credit unions. Freddie will offer favorable pricing as well as access to its technology and advisory...

Why Key Is Integrating Corporate, Investment.
December 3, 2002... KeyCorp, once viewed as a laggard in linking its corporate and investment banking businesses, is now taking major steps toward integrating them more closely -- at a time when several of its competitors are putting more distance between the two....

In Brief: Fleet, Cendant Sign Outsourcing Deal.(Brief Article)
December 3, 2002... Fleet National Bank announced Monday that it has outsourced its mortgage processing, closing, and servicing functions to Cendant Mortgage on a private-label basis. The Mt. Laurel, N.J., unit of Cendant Corp. will buy all mortgages...

In Brief: First National of S.C. Folds Unit into Bank.(Brief Article)
December 3, 2002... First National Corp. announced Monday that it has merged its consumer finance unit into one of its two bank subsidiaries. The $1.1 billion-asset company said that its South Carolina Bank and Trust acquired the majority of the loans and...

In Brief: Concord EFS Shuffles Executive Lineup.(Brief Article)
December 3, 2002... Concord EFS Inc., the transaction processor that owns the Star electronic funds transfer network, announced some executive reassignments Monday. Bond R. Isaacson was named the president of financial services and will oversee sales, client...

Institutions Hike Rates; Gap Widens Over Banks.
December 3, 2002... Institutional investors have been demanding higher rates on corporate loans for several months, and the gap between what they and banks charge is near historic highs, observers say. For the past three weeks corporate borrowers have been...

New Board Members, Guidelines at PNC.(Brief Article)
December 3, 2002... PNC Financial Services Group Inc. announced the appointment of three new board members Monday and unveiled governance guidelines and enhanced charters for its board committees. The new directors are J. Gary Cooper, the chairman and chief...

Low Black, Hispanic Rates for Top SBA Lenders.(Small Business Administration)
December 3, 2002... Four of the top five Small Business Administration lenders made just a fraction of their loans to African-Americans or Hispanics during the 12 months that ended Sept. 30, according to data the lenders voluntarily reported to the government. ...

Third-Quarter Home Prices Climbed 6%.
December 3, 2002... We are not authorized to publish this article provided by Dow Jones. Copyright 2002 Thomson Media. All Rights Reserved. http://www.americanbanker.com

In Brief: Peoples of Ohio Buying Ky. Bancshares.(Brief Article)
December 3, 2002... Peoples Bancorp Inc. announced Monday that it had entered an agreement to buy Kentucky Bancshares Inc. in a deal valued at $31.4 million. Peoples, with $1.4 billion of assets, would pay approximately half of the purchase price in cash and...

In Brief: Citizens of Ind. to Close Grocery Branches.(Brief Article)
December 3, 2002... Citizens Financial Services is closing four supermarket branches in Illinois once their leases expire. Three of the branches would be consolidated into other branches, and one would be relocated as a stand-alone branch, Citizens announced...

Second Thoughts on Second Foreign Deposit Plan by IRS.
December 3, 2002... It seems bankers will never be satisfied with rules on their reporting of foreign deposit interest. Bank trade groups in recent weeks have bombarded the Internal Revenue Service with letters denouncing a proposal that U.S. banks report to...

MC, Universal Said Close to Deal.(Universal Studios and MasterCard)
December 3, 2002... Is E.T. as good a buy as Mickey Mouse? According to Monday's edition of Advertising Age, Vivendi Universal Entertainment's Universal Studios and MasterCard are close to signing a $100 million-$125 million multiyear contract that would give...

In Brief: BB&T to Market Web Bond Analysis.(Brief Article)
December 3, 2002... BB&T Capital Markets plans to market SS&C Technologies Inc.'s bond accounting and portfolio analytics to its clients and correspondents. Chris Goetz, the managing director of BB&T Capital Markets' portfolio strategies group, said last...

In Brief: Bankers Bank Offers Data-Guard Service.(Brief Article)
December 3, 2002... Bankers Bank will offer its community correspondent banks an information security service from Guarded Networks Inc. of Fort Lauderdale, Fla., according to an executive at the Atlanta bank. The state-chartered Bankers Bank, which...

In Brief: Positive Pay Service Via JPM Chase Unit.(Brief Article)
December 3, 2002... J.P. Morgan Treasury Services is offering corporate clients a way to use positive pay service for fraud prevention without sending files of the checks they have issued. Edward Regina, a vice president of the J.P. Morgan Chase & Co....

In Brief: Key, AcuPrint Sign Positive Pay Pact.(Brief Article)
December 3, 2002... KeyBank is offering its treasury management clients a way to adopt positive pay for their checking accounts by referring them to AcuPrint Technology Inc., which provides software called SecurePay to implement the service. Companies use...

In Brief: Corillian Installing Software by Epicor.(Brief Article)
December 3, 2002... Pursuing its strategy of adding capabilities to its technology through alliances, Corillian Corp. is integrating call-center software from Epicor Software Corp. into its Voyager Internet banking software. Epicor, an Irvine, Calif.,...

7-Eleven's Car Policy Sales a New Test for Kiosks.
December 3, 2002... 7-Eleven's addition of auto insurance to the list of financial products it sells through electronic kiosks shows that the convenience store chain's overall financial services strategy, which looked like it might be losing momentum just two...

Analyst Big on JPM Chase Cites Key Units' Strength.
December 3, 2002... Sandler O'Neill & Partners LP initiated coverage on J.P. Morgan Chase & Co. with its top rating Monday just as a New York court began hearing the banking company's case in its Enron-related lawsuit against 11 insurers. Robert Albertson,...

Compass Buys Fla. Investment Advisory.(Brief Article)
December 3, 2002... Compass Bancshares Inc. said Monday that it had bought St. Johns Investment Management Co. The Jacksonville, Fla., advisory has about $250 million of assets under management, Compass said in a press release. It provides wealth management...

Oswego Plans Conversion, Has Eye on Acquisitions.
December 3, 2002... Oswego County Bancorp Inc., a mutual holding company in upstate New York, plans to pursue a second-step conversion and switch to a commercial charter if its shareholders give it the green light at a special meeting Dec. 30. The company...

PNC Says Agency Demands All Met, Growth a Challenge.(180-day supervisory period goals met)
December 4, 2002... PNC Financial Services Group Inc. chairman and chief executive officer James E. Rohr said Tuesday that the company had met every requirement laid out by regulators under a 180-day supervisory period set to expire in January. Mr. Rohr told...

Wells Melds Acquisitions In Adviser Unit.(new financial consultant advisory unit)
December 4, 2002... Wells Fargo & Co. announced Tuesday that it has picked Dennis Mooradian, the executive who ran its private-client unit, to head a new financial consultant advisory group that includes several recently-acquired businesses. Mr. Mooradian,...

Is Allegiant Execs' Ill. Buy Precursor to Another Deal?( St. Louis' community banks)(Brief Article)
December 4, 2002... Are the seeds for St. Louis' next large community bank being planted across the Mississippi River, in Aviston, Ill.? Allegiant Bancorp Inc. disclosed last month that some of its executives and shareholders had invested in $94 million-asset...

TODAY'S NEWS.(Brief Article)
December 4, 2002... Los Angeles is expected to adopt an anti-predatory-lending law for firms that are regulated at the local level. Page 2 The Calif. Legislature will consider strengthening financial privacy laws for the fourth consecutive session. Page 4 ...

Treasury Rejects FHLB Offer on Disclosure.(government-sponsored enterprises rules)
December 4, 2002... The Treasury Department on Tuesday threatened to go to Congress if the 12 Federal Home Loan Banks do not agree to register their stock with the Securities and Exchange Commission as other government-sponsored enterprises have agreed to do. ...

L.A. Council Expected To OK Predatory Measure.(proposed anti-predatory-lending legislation)
December 4, 2002... Anti-predatory-lending measures are gaining in ground in California, even though one financial industry trade group has shown that it is prepared to sue municipalities that pass such laws. Following similar actions by Oakland's City Council...

Privacy No. 1 on Agenda As Calif. Session Begins.(financial services companies legislation)
December 4, 2002... The next privacy battle has been joined as the California Legislature convened a new session Monday and state Sen. Jackie Speier reintroduced her bill to force financial services companies to get customers' permission before sharing their data...

Eyes on the FDIC, OCC Vows to Hold Line on Salaries.(Office of the Comptroller of the Currency )
December 4, 2002... The Office of the Comptroller of the Currency is trying to reassure national banks that a unionization of the agency's staff will not produce higher salaries, or higher exam fees. In a Nov. 26 letter to national banks, Comptroller John D....

Card Firms Win Again in Web Gambling Suit.(Internet gambling case)
December 4, 2002... Once again Visa and MasterCard have prevailed in a lawsuit in which consumers who lost money through Internet gambling tried to pin the blame on card companies. The U.S. Court of Appeals for the Fifth Circuit in New Orleans upheld a...

In Brief: Ex-Amex Employees Accused of Fraud.(identity theft ring)(Brief Article)
December 4, 2002... Two former American Express Co. customer service representatives face federal charges for their alleged role in an identity theft ring. An accomplice, Oona Brown, has admitted to using information obtained from the two former reps to make...

In Brief: UPS, Bank One Offer Small-Business Visa.(United Parcel Service of America Inc.'s new credit card)(Brief Article)
December 4, 2002... United Parcel Service of America Inc.'s UPS Capital division has introduced a credit card for small businesses, a cobranded Visa issued by Bank One Corp. The UPS Capital Visa Business card rewards companies that do their shipping through...

In Brief: Chase, Continental Offer Double Miles.(Continental OnePass double airmile points )(Brief Article)
December 4, 2002... J.P. Morgan Chase & Co. has begun offering double airmile points on its Continental OnePass cobrand cards for purchases from certain merchants. People who hold Continental Airlines Platinum cards, WorldMasterCards, and Visa Signature cards...

Campbell Raises Investment Minimums.(alternative investment firm)(Brief Article)
December 4, 2002... Campbell & Co., a small alternative investment firm, has announced that it will quadruple the minimum investment required in its largest publicly offered fund, to $100,000, next month. The firm said on Monday that this minimum investment...

In Brief: S&P: Hartford Rating Reflects 'Leadership'.(Hartford Life Insurance Co. rating)(Brief Article)
December 4, 2002... Standard & Poor's commented Monday on its A1-plus, short-term counterparty credit and financial strength ratings for Hartford Life Insurance Co. of Simsbury, Conn. "The ratings reflect the company's leadership position in the U.S....

In Brief: Liberty Mutual Deal Is a Start in Portugal.(Liberty International acquires Winterthur's units)(Brief Article)
December 4, 2002... Liberty Mutual Group has announced that its subsidiary Liberty International agreed to buy Winterthur's Portuguese business units and branch offices, including its subsidiary companies Companhia Europeia de Seguros and Winterthur Pensoes....

In Brief: Mich. Bankers Add Products at Agency.(Michigan Bankers Insurance Center services)(Brief Article)
December 4, 2002... The Michigan Bankers Insurance Center has announced the addition of three products for member banks and their customers: ACH Optional Mortgage Insurance, Paperless Platform Annuities, and Voluntary Employee Benefits. The products are in...

In Brief: Fannie Signs Up for Tax-Credit Software.(low-income housing tax credit equity program)(Brief Article)
December 4, 2002... Fannie Mae's multifamily division says it will use processing software from CapitalThinking Inc. of New York for its $6.5 billion low-income housing tax credit equity program. Caroline Blakely, the vice president of Fannie's multifamily...

In Brief: Freddie: 3Q Home Value Slowed Down.(Brief Article)
December 4, 2002... Home values grew 3.2% in the third quarter, against 8.8% in the second quarter, Freddie Mac reported Tuesday. But the company also reported that the annual house-price appreciation rate was 5.5% from the third quarter of 2001 through the...

In Brief: Fannie List Adds First Tenn., HSBC.(Brief Article)
December 4, 2002... We are not authorized to publish this article provided by Bloomberg News. Copyright 2002 Thomson Media. All Rights Reserved. http://www.americanbanker.com

Wall Street Offers Mixed Reviews for Capital One.(Capital One Financial Corp.'s stock ratings)
December 4, 2002... Capital One Financial Corp.'s stock won both an upgrade and a downgrade from Wall Street on Tuesday. The Falls Church, Va., credit card company and auto lender has been the subject of recent rumors that the New York insurer American...

In Brief: B of A Targets Chicago, Eyes N.Y., Boston.(Bank of America Corp.'s expansion plans)(Brief Article)
December 4, 2002... Bank of America Corp.'s previously announced plan to expand its branch network by 550 branches, or 13%, over three years will include 10 to 15 in Chicago and could include new cities, its chairman and chief executive said. Kenneth D. Lewis...

In Brief: Mass. State Pension Fund Dumps Fleming.(Brief Article)
December 4, 2002... We are not authorized to publish this article provided by Bloomberg News. Copyright 2002 Thomson Media. All Rights Reserved. http://www.americanbanker.com

In Brief: Union Planters Downgraded by Merrill.(Union Planters Corp. stock rating cut to neutral)(Brief Article)
December 4, 2002... Merrill Lynch & Co. Inc. analyst Judah Kraushaar cut his Union Planters Corp. stock rating Tuesday to "neutral" from "buy," saying he was "less comfortable" with prospects for continued earnings growth. Shares of the Memphis company fell...

Five Firms Settle E-Mail Charges.
December 4, 2002... We are not authorized to publish this article provided by Bloomberg News. Copyright 2002 Thomson Media. All Rights Reserved. http://www.americanbanker.com

'Expert' Definition Also Drawing Big Banks' Ire.(Sarbanes-Oxley Act challenged by banking industry)
December 5, 2002... The industry's opposition to a key provision of the Sarbanes-Oxley Act is even broader than initially anticipated, and top industry officials are giving the Securities and Exchange Commission an earful. Large financial services firms and...

Fleet CEO: Double-Digit Growth Ahead, But Timing Is Unclear.(FleetBoston Financial Corp)
December 5, 2002... An investigation by the Treasury Department Inspector General into the failure of $700-million asset NextBank in February found that it might have survived if not for a loophole in the bank's start-up process. The 52-page report blamed...

Fleet CEO: Double-Digit Growth Ahead, But Timing Is Unclear.(FleetBoston Financial Corp)
December 5, 2002... Winding down a tumultuous year that included big writedowns, the closing of operations, and senior management shuffles, FleetBoston Financial Corp.'s chief executive Charles K. Gifford says he is counting on basic banking to return the company...

B of A's Lewis Named 2002 Banker of The Year.
December 5, 2002... Wachovia's Medlin honored for lifetime achievement American Banker announced the winners of its 2002 Best in Banking awards Wednesday night, with top honors going to Bank of America Corp. chairman and chief executive Kenneth D. Lewis. ...

Today's News.
December 5, 2002... WASHINGTON Federal regulators issued guidance on how to account for assets that stem from credit card securitizations. Page 4 COMMUNITY BANKING Sun Bancorp of Pennsylvania has recovered half of the $2 million it lost in a loan...

New Residual Accounting Guidance.
December 5, 2002... We are not authorized to publish this article provided by Dow Jones. Copyright 2002 Thomson Media. All Rights Reserved. http://www.americanbanker.com

Sun of Pa. Recovers Half of Fraud Loss.(Sun Bancorp Inc)(Brief Article)
December 5, 2002... Sun Bancorp Inc. has recovered half of the nearly $2 million it lost in a loan fraud it uncovered in late October. Robert J. McCormack, Sun's president and chief executive officer, said late Tuesday that it had received $950,000 after...

Credit Unions Suspect 'Broker' in Bank Fight: The Credit Union Journal.(Resolution Alliance for Strong Banks and Credit Unions)
December 5, 2002... NEW ENGLAND Slade's Ferry Bancorp in Somerset, Mass., has named Mary Lynn D. Lenz as its president and chief executive officer. She remains the president and CEO of its $405 million-asset Slade's Ferry Bank, which she joined in...

Credit Unions Suspect 'Broker' in Bank Fight: The Credit Union Journal.(Resolution Alliance for Strong Banks and Credit Unions)
December 5, 2002... A group billing itself as "an honest broker" in the struggle between Utah banks and credit unions says it is not a mouthpiece for bankers -- even though it is funded by them and pays for radio ads attacking credit unions. The Resolution...

Immediate Annuities Touted To Meet Retiree Product Need.(Banking industry products)
December 5, 2002... MasterCard International said it has completed a five-year, $160 million makeover of its payments network and that the enhancements move most MasterCard banks to a single computing platform that does a better job of processing all payment...

In Brief: AOL Mexico in Deal To Tout Amex Card.(Brief Article)
December 5, 2002... America Online's Latin America division on Wednesday announced an interactive marketing agreement between its Mexican subsidiary and American Express Co.'s Mexican unit, under which the American Express card is being promoted prominently across...

In Brief: National City is First To Sell Visa Gift Card.(Brief Article)
December 5, 2002... The National City Bank has become the first bank to sell instant-issue Visa gift cards. The bank's parent, National City Corp., said Tuesday that the prepaid gift card, available in denominations from $25 to $500, can be bought at its...