American Banker articles from July 2002

American Banker archives from July 2002

Today's News.(Brief Article)
July 1, 2002... WASHINGTON Page 4 COMMUNITY BANKING First Niagara is seeking acquisition targets and considering opening branches to fill a gap in its western New York branch network. Page 5 Three banks in New York, Massachusetts, and Maryland...

Small-Bank Network Tries Publishing.(Brief Article)
July 1, 2002... Community banks already cooperate on everything from venture capital opportunities to the investment products they offer, so it was probably only a matter of time before someone came up with a way for banks to distribute magazines together. ...

MetLife Reins In a Unit: Top execs go amid bank channel streamlining.(Brief Article)
July 1, 2002... The departure of Jamie Shepherdson and Greg Brakovich as co-CEOs of MetLife Investors signals that MetLife Inc. has lost patience with its unit that distributes investment and insurance products through third-party channels, according to...

Chicago Thrift Fails; 2d Shutdown In a Week.(Brief Article)
July 1, 2002... Back-to-back bank shutdowns last week had regulators scrambling and observers wondering if they were seeing a new wave of failures or just an unlucky coincidence before the close of the second quarter. Universal Federal Savings Bank, a $52...

It's Back to Toehold Deals at Fifth Third.(Brief Article)
July 1, 2002... Fifth Third Bancorp's George A. Schaefer Jr. would like nothing more than to find another target like the $11.9 billion-asset Old Kent Financial Corp., which his company bought last year to expand its presence in Chicago and Michigan. If...

Executive Changes.(Brief Article)
July 1, 2002... MIDWEST Bank One Corp. in Chicago has hired Casey Carter Paul to be the regulatory reporting coordinator and a senior vice president. She reports to Christine Edwards, the company's chief legal officer. Ms. Paul was the director...

Wahington People.(Brief Article)
July 1, 2002... Lawmakers Air It Out The corporate accounting scandals may be killing the stock market, but they are getting the chairmen of the Senate Banking Committee and the House Financial Services Committee plenty of time on the airwaves. Senate...

In Brief: Banks in N.Y., Mass., Md. Hit by WorldCom.(Brief Article)
July 1, 2002... Three more community banking companies announced they would take major charges to write down the value of their WorldCom Inc. bonds. Flushing Financial Corp. in Flushing, N.Y., and Independent Bank Corp. in Rockland, Mass., said they would...

In Brief: Report and Fund to Nab Robbers.(Brief Article)
July 1, 2002... The Massachusetts Bankers Association issued a report Thursday recommending ways to prevent banks robberies and aid in the apprehension of robbers The report is the result of six months of work by 25 bankers, the Federal Bureau of...

In Brief: Madison of Pa. Told to Improve Reporting.(Brief Article)
July 1, 2002... The Federal Reserve Bank of Philadelphia has ordered Madison Bank to fix problems with its currency and foreign transaction reporting and Bank Secrecy Act compliance. The order, which was released Friday, instructed the $188 million-asset...

First Niagara on the Prowl For Fill-In Acquisitions.(Brief Article)
July 1, 2002... After a two-year break, First Niagara Financial Group Inc., a former mutual thrift near Buffalo, is looking for acquisitions as it continues its change into a regional bank. It is also considering opening new branches -- all to help fill in...

Commerce Back in Agency Mart with North N.J. Deal.(Brief Article)
July 1, 2002... In its first agency deal in a year, Commerce National Insurance Services plans to add Sanford & Purvis Insurance for more direct access to the northern New Jersey market. Though Commerce Bancorp has been opening branches in New York City...

In Brief: Equifax Names Miller President.(Brief Article)
July 1, 2002... Equifax Inc. has hired Mark E. Miller as president and chief operating officer, a position vacated a year ago when Lee Kennedy left the credit reporting agency to become chief executive of its Certegy Inc. processing spin-off. Mr. Miller,...

In Brief: Fifth Third Tests Points Program.(Brief Article)
July 1, 2002... Fifth Third Bank is piloting a program letting its MasterCard customers accrue points on both their credit cards and debit cards. It is currently offering membership to select cardholders as a perk and said it will begin issuing new...

CertaPay Sees NYCE Deal As Key to U.S. P-to-P Market.(Brief Article)
July 1, 2002... A Toronto company that that organized a network of five Canadian banks for person-to-person transactions has set its sights on the United States. CertaPay Inc., which went live with the network in Canada on Wednesday, announced a...

Preferred Issues: 2Q: Consumer Still Key, WorldCom a Shallow Hit.(Brief Article)
July 1, 2002... The weak economy and sluggish markets -- along with the troubles at WorldCom Inc. -- may leave investors without much to cheer about when the nation's large financial services companies start reporting second-quarter earnings next week. ...

Brokers' Report Rule Published.(Brief Article)
July 1, 2002... The Treasury Department's final rule requiring Wall Street firms to report clients' suspicious activity to the government changed little from the initial proposal floated last year. Securities brokers and dealers will have to file...

Criticism Shifts from Fannie, Freddie to Test They Passed.(Brief Article)
July 1, 2002... The flying colors with which Fannie Mae and Freddie Mac passed their regulator's new capital stress test last week encouraged their defenders but have not exactly disarmed their critics. The test report, issued Thursday, "all but ends the...

E-Banking Vendors Seen Targeting Smaller Banks.(Brief Article)
July 1, 2002... In the past year online banking service vendors have improved the quality and scope of their offerings, often by acquiring weaker competitors. It would be natural to expect consolidation to reduce the number of options for small banks...

U.S. Bank Touts Web Revamp.(Brief Article)
July 1, 2002... When Firstar Corp. bought the old U.S. Bancorp last year, it figured then was a good time to consult with customers about their Internet banking needs and preferences. The Minneapolis-based parent of U.S. Bank surveyed customers from...

Silicon Valley Staying on Private Bank Course.(Brief Article)
July 1, 2002... Silicon Valley Bancshares Inc. will continue to build its fledgling private banking business aimed at technology entrepreneurs, despite the unexpected resignation of the unit's president, the company's vice chairman said last week. On...

In Brief: HSBC USA Buying an Andersen Business.(Brief Article)
July 1, 2002... HSBC USA Inc. announced Friday that it had a $15 million deal to buy the wealth and tax advisory business of Arthur Andersen LLP's private-client business. The unit of London's HSBC Holdings PLC said that the preliminary agreement calls...

In Brief: Disclosure Law's Starting Date Postponed.(Brief Article)
July 1, 2002... The financial services industry won the first round of its legal battle against a proposed California credit card disclosure law on Friday when the U.S. District Court in Sacramento postponed the effective date by five months. Issuers...

Broker Unit Lets Wamu Securitize In-House: Lender joins list of start-to-finish players in mortgage industry.(Washington Mutual Inc.'s new unit)(Brief Article)
July 2, 2002... Washington Mutual Inc.'s new institutional broker-dealer unit gives the company a way to save millions of dollars in investment banking fees that it might otherwise have paid to securitize loans in its massive mortgage portfolio. Equally...

Failed Conn. Bank Lent Millions at Last Minute.(Brief Article)
July 2, 2002... The biggest clue yet about why regulators suddenly swooped in to close Connecticut Bank of Commerce emerged Monday: two loans approved on a weekend, just days before the failure. Underscoring earlier suspicions of dubious business...

Mandatory Arbitration Latest Subprime Issue in Spotlight.
July 2, 2002... The use of mandatory arbitration clauses, a common practice by financial services firms to keep customer complaints out of court, is drawing increasing attention from state and federal lawmakers, who are mulling some restraints -- particularly...

Why Republic First Still Likes Tax, Payday Loans.(Brief Article)
July 2, 2002... Republic First Bancorp Inc. of Philadelphia is clinging stubbornly to two unusual lines of consumer lending -- despite significant setbacks in each. The $680 million-asset company continues to look for payday lending opportunities, even...

TODAY'S NEWS.(Brief Article)
July 2, 2002... Proposed accounting rules could raise costs for banks that deal in short-term corporate debt. Page 2 WASHINGTON The Basel Committee released results of a survey that asked banks to test its proposed rewrite of capital rules. Page 6 ...

FASB Proposes Special-Entity Asset Pullback.(Financial Accounting Standards Board)(Brief Article)
July 2, 2002... In a move that could raise costs for banks that deal in the short-term corporate debt markets, accounting rulemakers on Monday proposed new requirements for the financial treatment of special-purpose entities. The Financial Accounting...

Little Change in Syndication, Bond Underwriting Rankings.(Brief Article)
July 2, 2002... There were few surprises in the second-quarter rankings for syndicated loan and bond underwriters, which competed for fewer deals than they did in the same period last year. Proceeds from all U.S. syndicated loans fell 9.5% from the second...

BB&T Buys, Merges Hunt DuPree Rhine.(Brief Article)
July 2, 2002... BB&T Corp. completed its acquisition Monday of the actuarial and insurance consulting firm Hunt, DuPree, Rhine & Associates Inc. of Greenville, S.C. The price was not disclosed. The banking company has combined the firm with W.E....

Second Test Shows Flaw in Basel Plan.(Brief Article)
July 2, 2002... International regulators developing new bank capital rules are having trouble establishing a framework that would reward institutions for developing sophisticated internal risk management programs. The Basel Committee for Banking...

Hudson Getting Itself Set Up Across the River.(Hudson United Bancorp acquires Connecticut Bank of Commerce branches)(Brief Article)
July 2, 2002... Hudson United Bancorp's purchase of all five of Connecticut Bank of Commerce branches will expand it in Connecticut's affluent Fairfield County and give it what two of its rivals already have, a toehold in Manhattan. Connecticut banking...

Prudential Promotes Private-Client Exec.(Suzanne Sack)(Brief Article)
July 2, 2002... Prudential Securities Inc. said it has promoted Suzanne Sack to director of private-client services; she will report to Michael Rice, the executive director of retail, it said. Ms. Sack becomes responsible to oversee initiatives related to...

Small Pa. Bank Buys Agency to Extend Its Territory.(First Federal Savings Bank buys stake in Exchange Underwriters Inc.)(Brief Article)
July 2, 2002... First Federal Savings Bank of Monessen, Pa., has entered the property/casualty insurance business with the purchase of a majority stake in Exchange Underwriters Inc., an insurance agency outside Pittsburgh. The transaction, which was...

Quick & Reilly Sales Chief To Cross-Sell Within Fleet.(Brief Article)
July 2, 2002... FleetBoston Financial Corp.'s brokerage unit plans to double the number of brokers in its national business outside the parent's East Coast footprint the next two to three years in an effort to add assets with more cross-selling. Donald E....

In Brief: S&P Sells 529 Plan Information.(Brief Article)
July 2, 2002... Standard & Poor's Financial Communications said it will start a line of products aimed at helping educate investors about 529 college savings plans. The products include a 16-page 529 plan guide, an interactive 529 plan calculator, an...

In Brief: S.C. Picks CitiStreet's Services.(Brief Article)
July 2, 2002... CitiStreet has been selected by South Carolina to provide retirement services for state and local government employees. The retirement services joint venture of State Street Corp. and Citigroup Inc. said last Tuesday that it had been picked...

Justice Dept. Unrelenting in MC/Visa Case.(MasterCard)(Brief Article)
July 2, 2002... The Bush administration's Justice Department, which some thought might go easier than the Clinton administration's in the Visa/MasterCard litigation, seems equally bent on unlocking their exclusive relationships with banks. In a brief...

In Brief: IndyMac Chief Honored in L.A.(Michael W. Perry)(Brief Article)
July 2, 2002... Michael W. Perry, the chief executive officer and vice chairman of mortgage lender IndyMac Bancorp Inc., has received the 2002 Los Angeles Ernst & Young Entrepreneur of the Year Award in the financial services category. IndyMac officials...

In Brief: Unfriendly Household Visits.(Association of Community Organizations for Reform Now protest)(Brief Article)
July 2, 2002... The Association of Community Organizations for Reform Now took its fight against Household International Inc. to a personal level Sunday, when close to 2,000 of its members protested outside the Chicago-area homes of Household chief executive...

Report on Spending By Midsize Banks Gives Mixed Review.(Brief Article)
July 2, 2002... Midsize banks are making good use of the Internet and other technologies, but not enough are using technology to differentiate themselves. That was the chief finding of a survey by M One Inc. and Cornerstone Advisors Inc. of 44 banks with...

Fund-Verifier SafeCheck To Double Its Client Base.(Brief Article)
July 2, 2002... SafeCheck, which authorizes paper checks at the point of sale by comparing them to the check-writer's deposit account balance, says that five of its 11 bank owners are now using its service and that the other six will be using it by next year....

FleetBoston's Negotiations To Sell Robertson Drag On.(Robertson Stephens)(Brief Article)
July 2, 2002... It's the third quarter, and FleetBoston Financial Corp. has yet to announce an agreement to sell its Robertson Stephens Inc. investment bank. Courtney Weber, a spokeswoman for San Francisco-based Robinson, said Monday that the negotiations...

3-State Merrill Pact Extension.(Brief Article)
July 2, 2002... Officials in three states said on Monday that they would begin requiring the investment banking firms that manage funds on behalf of the states to adopt measures that would eliminate conflicts of interest. New York State Attorney General...

Corrections.(Correction Notice)(Brief Article)
July 2, 2002... In Friday's issue, "Community Bank Groups Hit OTS' Predator Plan" on page 4 mischaracterized the Conference of State Bank Supervisors as a "proponent" of the plan. The group supports parts of it but objected in its comment letter that the plan...

In Brief: Fannie and Freddie to Face More Disclosure.(Fannie Mae, Freddie Mac)(Brief Article)
July 2, 2002... The Office of Federal Housing Enterprise Oversight said Monday that it plans to require Fannie Mae and Freddie Mac to make various public disclosures as well as register their securities offerings. As reported in a June 19 American Banker...

In Brief: Citi-Golden State CRA Plan Expected Today.(Citigroup acquisition of Golden State Bancorp)(Brief Article)
July 2, 2002... Community groups in California expect Citigroup Inc. on Tuesday to unveil a multimillion-dollar commitment under the Community Reinvestment Act to smooth its $5.8 billion deal for Golden State Bancorp. While expected to set a new record in...

Editor's Note.(Fannie Mae, Freddie Mac deal with small banks)(Brief Article)
July 2, 2002... For years community banks had few options when it came to selling mortgage loans on the secondary market, because they did not produce enough to interest Fannie Mae and Freddie Mac. But suddenly the two government-sponsored giants are...

Small Banks Finding More Options in Secondary Market.
July 2, 2002... Fannie Mae and Freddie Mac insist that their new initiatives to get more business from community banks would have happened with or without the Federal Home Loan Bank System's Mortgage Partnership Finance program, but don't tell that to Alex J....

Blimps, Balloons, Other Not-So-Pie-in-the-Sky Ideas.(community bank promotions)
July 2, 2002... From a dunk tank that First State Bank in Manchester, Iowa, will set up at a county fair this summer to the free balloon rides offered by Bank of Louisville in Kentucky, community banks are finding unusual ways to get attention - and...

Recession-Proof Prescription for Banks: Doctors.
July 2, 2002... When banker Lee Lewis started working in Lake City, Fla., five years ago, his top priority was wooing the administrators of the three local medical facilities. "I courted the heck out of them," said Mr. Lewis, vice president, regional...

Get Ready for a New Era of Retirement Accounts.(new regulations)(Brief Article)
July 2, 2002... The retirement plan industry is in the midst of the most sweeping changes since 1974, when individual retirement accounts were created. Last year Congress passed the Economic Growth and Tax Relief Reconciliation Act, which raised IRA and...

Disability Statutes Cause Legal Fits, Retrofits.
July 2, 2002... Union Safe Deposit Bank in Stockton, Calif., was founded in 1897 and still operates some of its branches in 1920s-era buildings. So, to accommodate handicapped customers who cannot reach the high granite-and-marble counters, the $1...

Home Loan Banks' Capital Plans Taking Shape.
July 2, 2002... The nation's 12 Federal Home Loan banks are making the first major changes to their capital structures in 70 years now that, thanks to the 1999 Gramm- Leach-Bliley Act, membership in the system is strictly voluntary. For the first time,...

Have Outsourcers Made CIOs Obsolete?(chief information officer)
July 2, 2002... Dale P. Arnold has a simple solution for managing his bank's technology functions: He takes his cues from Fiserv Inc. Many banks and thrifts outsource data processing and other technology functions, but small institutions like Mr. Arnold's...

Today's News.
July 3, 2002... WASHINGTON Page 3 COMMUNITY BANKING Greater Bay of California said it expects to report second-quarter earnings of 30% more than a year earlier. Page 4 West Coast created a branch that is also a retail art gallery in downtown...

The Tech Scene: Competitors Aren't Rushing To Match B of A's No-Fee EBPP.
July 3, 2002... Though executives at Bank of America Corp. were among the first to predict that a lot of banking companies would emulate their decision to drop online bill payment fees, the copycats have not shown up yet. Indeed, the move has prompted some...

Exec Departs; MassMutual in Bank Retreat?
July 3, 2002... After two years of initiatives to boost annuity sales in the bank channel but minimal results, MassMutual Financial Group seems to be shifting gears. Two years after hiring John P. Sousa 4th to push the company into the bank channel,...

NextBank Tab Getting Even Bigger For FDIC.
July 3, 2002... The Federal Deposit Insurance Corp.'s difficulty in selling NextBank's securitized receivables means the bank's failure will cost the Bank Insurance Fund between $300 million and $400 million -- a high price for a bank of its size, and far more...

Banking Giants Edge Out Street in M&A Rankings.
July 3, 2002... Second-quarter rankings of the top advisers on mergers and acquisitions show dramatic shuffling among the top 10 global arrangers -- an indication that the universal banking model could be paying off. J.P. Morgan Chase & Co. topped the...

Executive Changes.
July 3, 2002... MIDWEST U.S. Bancorp Piper Jaffray in Minneapolis has named David Jacquin the head of its consumer merger and acquisition practice. Mr. Jacquin is based in San Francisco. He remains a managing director of the U.S. Bancorp subsidiary...

Errors Left and Right in K Street Project Lineup.
July 3, 2002... Campaigns to divide Washington along political lines are as inevitable as summer humidity here, but financial services lobbyists are predicting one of the latest efforts won't stick. Beltway gossips have buzzed recently over the so-called K...

Comment: Need a Lift? The Risk Is Little In the Right Reward Program.
July 3, 2002... Is it wrong or undignified for banks to run bonus programs, contests, and the like? Many feel that a bank employee or director has a job to do and should not be rewarded over and above their normal salary and honorariums. But I'm with...

In Brief: Ex-Northern Trust Chief Dead.(Edward Byron Smith)(Brief Article)
July 3, 2002... Edward Byron Smith, a former chairman and chief executive of Northern Trust Corp., died June 27. He was 93. Mr. Smith, whose grandfather Byron L. Smith founded the company in 1893, joined it after graduating from Yale University. He served...

In Brief: CEO Quits at Columbia of Wash.(Brief Article)
July 3, 2002... Columbia Banking System Inc. has named its chairman, William T. Weyerhaeuser, to succeed chief executive officer J. James Gallagher, who resigned Tuesday. Mr. Gallagher, who is 63, stepped down just three months after two bad loans forced...

In Brief: Greater Bay Profits Up 30%.(second quarter)(Brief Article)
July 3, 2002... Greater Bay Bancorp said Tuesday that it expects to report second-quarter earnings of 60 cents a share, 30% more than a year earlier and 3 cents more than the analyst consensus. The $8.3 billion-asset company credited increases of 16% in...

Bank Doubling As Gallery Space In Artsy Portland.(Brief Article)
July 3, 2002... How does a traditional, suburban community bank fit into an ultra-hip, upscale neighborhood in Portland, Ore.? Transform itself into a gallery and offer services that urbanites would use -- such as dry cleaning -- says Dave Hansen, a...

Huntington, as Part of Its Exit from Florida, Sells Orlando Agency.(Brief Article)
July 3, 2002... Huntington Bancshares, bucking the trend of bank insurance agency purchases, said Tuesday that it has sold one as part of its continuing exit from Florida -- but is maintaining its insurance business in the Midwest. The $25 billion-asset...

Trustmark Breaks Drought With a Miss. Agency Buy.(Brief Article)
July 3, 2002... Trustmark Corp., a Jackson, Miss., banking company, has made its first insurance agency acquisition since January 1999. The purchase of Chandler-Sampson Insurance Inc. in Ridgeland, Miss., was announced Monday. The price was not disclosed....

California City to Vote on Opt-In Bill.(Brief Article)
July 3, 2002... The city council of Daly City is scheduled Monday to vote on whether to require financial companies operating there to get explicit customer permission before sharing confidential financial information. The "opt-in" ordinance, sponsored by...

In Brief: Fleet Unit Names Chief of Operations.(Brief Article)
July 3, 2002... Fleet Credit Card Services has hired Richard G. Campbell as chief operations officer, the FleetBoston Financial Corp. subsidiary announced Tuesday. Mr. Campbell, who was most recently executive vice president in charge of fraud and...

In Brief: OCC: Loan Standards Continue to Tighten.(Office of the Comptroller of the Currency)(Brief Article)
July 3, 2002... For the second year in a row, banks tightened underwriting standards for commercial and retail loans, according to a survey by the Office of the Comptroller of the Currency. The agency said that tightened standards were largely a response...

GSEs Getting Endorsements From Everyone But Investors.(government-sponsored enterprises)(Brief Article)
July 3, 2002... The bad news about corporate America's conduct could be outweighing good news for Fannie Mae and Freddie Mac, whose stock prices are plumbing 18-months lows. Fannie shares were trading at $73.50 late Tuesday, down 14% from a year ago....

Fannie Mae Doubles Minimum Issue Sizes.(Brief Article)
July 3, 2002... Fannie Mae announced Tuesday that this month it will double the minimum issue sizes on its Callable Benchmark notes debt program, to $2 billion. The company said it will issue one or two of the callable benchmark notes each month and that...

New clients for aggregator uMonitor.(Brief Article)
July 3, 2002... The account aggregation service provider uMonitor Inc. has signed up two new financial services clients: ProNvest Inc., a money management firm, and Alliance Benefit Group, a retirement plan administration and consulting firm. Dinesh...

Metavante Buying Paytrust to Grow in EBPP.
July 3, 2002... By acquiring the biller-direct technology provider Paytrust Inc., Metavante Corp. would gain marquee customers such as American Express Co. and Citigroup Inc. It would also build the critical mass it needs to challenge CheckFree Corp. for...

Morgan Chase Regains Some Ground After Selloff.
July 3, 2002... Shares of J.P. Morgan Chase & Co. held up Tuesday as Wall Street braced itself for more bad news on several fronts. Some analysts attributed Monday's selloff in the New York company's stock to fears about its credit quality and the adequacy...

Correction.(Correction Notice)
July 3, 2002... A correction Tuesday about the Conference of Bank Supervisors' position on an OTS plan to discourage predatory lending was itself incorrect. The story appeared June 26, not last Friday. Copyright c 2002 Thomson Media. All Rights Reserved....

House Panel Mulls Realty Block.(Brief Article)
July 3, 2002... The House Appropriations Committee is expected to vote as early as Tuesday on legislation that would block the Treasury Department from issuing a regulation allowing banks into the real estate management and brokerage businesses. Sources...

In Brief: Bear Stearns to Adopt Merrill Policies.(Brief Article)
July 3, 2002... Bear Stearns Cos. will voluntarily adopt some of the policies hammered out in a recent settlement between its rival Merrill Lynch & Co. and New York State Attorney General Eliot Spitzer. In a memo to employees Tuesday, James E. Cayne, Bear...

In Brief: Fitch Raises Ratings for CIT's Debt.(Brief Article)
July 3, 2002... CIT Group's debt got an upgrade from Fitch Ratings after its initial public offering severed the finance company's ties with Tyco International Ltd. Fitch raised its rating for CIT's senior debt and related entities to A, from BBB, and its...

In Brief: Subcommittee to Hold GSE Hearings.(government-sponsored enterprises)(Brief Article)
July 3, 2002... A key House Financial Services subcommittee is expected to hold hearings July 16 and 23 on the regulation of Fannie Mae and Freddie Mac. Armando Falcon Jr., the director of the Office of Federal Housing Enterprise Oversight, and Peter...

Predicting More Mortgage Originators, Fewer Lenders.(Brief Article)(Statistical Data Included)
July 8, 2002... Technology improvements and changing borrower demographics will fuel an explosion of front-line mortgage originators in the next 10 years, one of Freddie Mac's main technology executives says. While the lending and servicing sectors will...