American Banker articles from May 2005

American Banker archives from May 2005

Behind the Small-Bank Service-Fee Income Drop.
May 2, 2005... By most measures, community banking companies had a good first quarter that included improved net interest margins and solid gains in loans and deposits. But the earnings would have been even better for many if not for a decline in service...

Political Pro Faces Test As ABA Boss.(American Bankers Association)
May 2, 2005... WASHINGTON -- The guard changed today at the American Bankers Association for the first time in 20 years, but members are unlikely to notice the difference -- and that is exactly the way the new chief wants it. Edward L. Yingling, the...

Act Local: Wachovia's Blitz Toolkit.
May 2, 2005... Wachovia Corp. has staked out Savannah, Ga., as the latest battlefield in the bloody competition that is retail banking these days. For the past month Wachovia bankers have been fanning out across Savannah as part of an effort to bring in...

Piggybacks Out of Favor?(Radian Group chief gives opinion)(Brief Article)
May 2, 2005... The incoming chief executive at Radian Group says demand among investors for the insurance-free mortgage structure will soon subside. Copyright 2005 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

Executive Changes.(Brief Article)
May 2, 2005... New England RBS Greenwich Capital Markets Inc., a Connecticut unit of Royal Bank of Scotland Group PLC, has hired David Cannon as the head of its collateralized mortgage obligation trading desk. Mr. Cannon, who has also been named a...

Irwin Posts Surprise Profit.(Brief Article)
May 2, 2005... Weeks after saying it expected to report a first-quarter loss, Irwin Financial Corp. of Columbus, Ind., announced Friday that it turned a small profit. The $5.2 billion-asset company said it earned $3.6 million, or 13 cents a share. ...

MBNA Forming Mexican Venture With Ixa Banco.
May 2, 2005... MBNA Corp. is forming a joint venture with the retail bank and credit card issuer Ixe Banco SA to issue credit cards and make consumer loans in Mexico this year. With U.S. receivables growth expected to remain slow this year, issuers are...

In Brief: Servicers Seek Injunction Against Diebold.(Brief Article)
May 2, 2005... A trade group representing independent servicers of automated teller machines has asked a judge to bar Diebold Inc. from withholding parts and information they need. As of Friday no action had been taken on the motion the Financial and...

Popular Hopes Processing Deal Leads to Still More.
May 2, 2005... Popular Inc. hopes the $125 million investment it has agreed to make in the parent of a Salvadoran bank will help it expand its payments and processing businesses in the Caribbean and Central America. The deal, announced last week, would...

In Brief: Mellon in N.Y. Partnership to Oversee HSAs.(Independent Health of Buffalo)(Brief Article)
May 2, 2005... Mellon Financial Corp. announced an agreement Friday with Independent Health of Buffalo to administer health savings accounts opened in tandem with the latter's iDirect employer-sponsored health plans. Mellon offers services for health...

BB&T: Broker Scandals Free Up Big-Firm Sales.
May 2, 2005... In the wake of scandals that have shaken up the insurance brokerage industry, BB&T Corp.'s insurance unit is looking to win big commercial customers away from their current providers. "We may be a great alternative for people who hadn't...

What's Behind Puerto Rico Mortgage Mess.
May 2, 2005... Puerto Rico conjures up images of beach life and relaxation, but some of the island's bankers have been sending shock waves, not sunny thoughts, to Wall Street. Doral Financial Corp. and R&G Financial Corp. recently announced that a change...

New Radian CEO Predicts Piggybacks Will Wane.
May 2, 2005... S.A. Ibrahim, who will take over as the chief executive of the Philadelphia mortgage insurer Radian Group Inc. this week, predicts that piggyback mortgages will soon lose their investor appeal. Also known as an 80-10-10, the loan combines a...

Flagstar of Mich. Forming Subprime Investment Unit.
May 2, 2005... Flagstar Bancorp Inc. of Troy, Mich., is forming a mortgage investment subsidiary that it hopes to spin off through a public offering this year and possibly convert to a real estate investment trust. In a conference call with investors and...

In Brief: Fifth Third to Use NCR System.(Brief Article)
May 2, 2005... Fifth Third Bancorp of Cincinnati will use the ImageMark system from Dayton, Ohio, automated teller machine and point of sale terminal maker NCR Corp. for the remote capture of check images at business locations. NCR said Friday that Fifth...

In Brief: BB&T Installs Carreker Product.(Brief Article)
May 2, 2005... BB&T Corp. of Winston-Salem, N.C., has licensed the Adjustments/Express system from the Dallas image-processing software vendor Carreker Corp. for correcting check-clearing errors using digital images rather than paper items. Carreker said...

In Brief: M&T Using Symantec Service.(Brief Article)
May 2, 2005... M&T Bank Corp. of Buffalo is using an online fraud management service from the Cupertino, Calif., computer security software vendor Symantec Corp. to prevent e-mail scams. "Our objective is to mitigate the likelihood that our customers...

Project Delay, Citi Pact Shape Corillian's Earnings.
May 2, 2005... The Hillsboro, Ore., banking technology vendor Corillian Corp. took a big hit in the first quarter when its largest Internet banking implementation project was delayed, but it also picked up a prominent customer for fraud detection: Citigroup...

Correction.(Correction Notice)
May 2, 2005... In the April 22 paper, the story on page 4 misspelled the last name of Rep. Spencer Bachus, R-Ala. Copyright 2005 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.americanbanker.com

In Brief: Regulators Delay Basel II Implementation.(Brief Article)
May 2, 2005... Federal regulators said Friday that implementation of the Basel II standards will be delayed while they assess the likely impact on bank capital levels. The four banking and thrift agencies had hoped to implement the capital standards in...

In Brief: House Vote Planned on Deposit Coverage.(Brief Article)
May 2, 2005... The House is scheduled to vote Wednesday or Thursday on legislation that would overhaul the deposit insurance system. The bill would merge the bank and thrift deposit insurance funds, give the Federal Deposit Insurance Corp. more...

In Brief: Riccobono to Become Acting OTS Chief.(Office of Thrift Supervision appoints acting chief)(Brief Article)
May 2, 2005... Richard M. Riccobono was scheduled to take over today as the Office of Thrift Supervision's acting director until John Reich, the nominee for the job, is confirmed by the Senate. James Gilleran stepped down Friday after four years as the...

In Brief: KeyCorp Traders Join Regions Subsidiary.(Morgan Keegan forms trading group)(Brief Article)
May 2, 2005... Morgan Keegan & Co. Inc., a Memphis brokerage and investment banking unit of Regions Financial Corp. of Birmingham, Ala., has hired a team of bankers from a KeyCorp unit to form a stock sales and trading group. The team will be based in...

In Brief: Another Deal by Calif.'s First Community.(purchase of First American Bank)(Brief Article)
May 2, 2005... Continuing its southern California acquisition spree, First Community Bancorp in Rancho Santa Fe has struck a deal to buy the $245 million-asset First American Bank in Rosemead for $62.3 million in cash. The deal, announced Thursday, is...

B of A: No Slave Profits in Our History.(Bank of America Corp.)
May 2, 2005... CHICAGO -- Bank of America Corp. told the City Council on Friday that research with the help of a consultant found no evidence that any B of A predecessor institution had profited from slavery. "We have searched our records, and we have...

Sovereign CEO: Margins, Core Deposits Top Priority.
May 2, 2005... Sovereign Bancorp Inc. of Philadelphia blamed its margin decline and slow asset growth in the first quarter on increasing competition and said it will stay away from low-margin loans and focus on adding core deposits. Jay Sidhu,...

Lobbyist, Policymaker, 'Godsend,' Next Comptroller?
May 3, 2005... WASHINGTON -- Comptroller of the Currency nominee John C. Dugan would breeze through a Senate confirmation hearing -- if only he could get one. That's the consensus in this town. His supporters, of whom there are many, claim he's the ideal...

Finding New Ways to Rate A Borrower.
May 3, 2005... Alternative credit-scoring systems that size up applicants with little or no traditional credit history are gaining traction as lenders struggle to find fresh customers. The new systems use information such as rent and utility bill...

Metavante, Fiserv Link Their Image Networks.
May 3, 2005... Two bank technology providers that serve thousands of community banks and credit unions have struck a deal to link their image exchange networks. Fiserv Inc. plans to announce today that it will link its fledgling Fiserv Clearing Network...

Webster Seeking Further New England Retail Growth.
May 3, 2005... Webster Financial Corp. executives are taking steps that they hope will raise its retail banking profile in New England. Last month the $17 billion-asset Waterbury, Conn., banking company hired Scott McBrair, a JPMorgan Chase & Co....

Operational Risk Issues.(Brief Article)
May 3, 2005... The third Financial Services Executive Forum focuses on operational risk management. Though the subject looms large for many respondents, 49% said their companies do not manage op risk in a structured way. That's 55% of respondents from...

In Brief: Restatement Plan Earns AIG Downgrades.(American International Group debt ratings)(Brief Article)
May 3, 2005... Fitch Inc. and Moody's Investors Service Inc. downgraded American International Group Inc.'s debt ratings Monday for the second time in two months. The downgrades came a day after the New York insurer said it would restate its financial...

In Brief: Lehman, Goldman Seen Lowering Targets.(Brief Article)
May 3, 2005... Morgan Stanley downgraded two New York investment banking companies and said a weaker trading environment could cause them to lower their second-quarter earnings estimates. Chris Meyer, a Morgan Stanley analyst, downgraded Lehman Brothers...

Profits Up at Va.'s First Community.(Brief Article)
May 3, 2005... First Community Bancshares Inc. in Bluefield, Va., said its first-quarter earnings rose 43% from a year earlier, to $6 million, largely because of an acquisition and its exit from the wholesale mortgage banking business. Net interest...

N.Y.'s Dime Taking the Brakes Off Deposit Growth.(Dime Community Bancshares)
May 3, 2005... For the first time in nearly a year, the top executives at Dime Community Bancshares Inc. in Brooklyn, N.Y., are talking about growth. To protect its margins, Dime cooled its growth engine last spring, when the average yield on its...

Diebold Acquires Another Security Systems Provider.(Tasc Security purchased)
May 3, 2005... Diebold Inc. of North Canton, Ohio, has acquired its fourth security services and hardware company since last year. The acquisition of Tasc Security, a privately held London company, was announced Monday. Diebold did not say how much it...

MC Plan for Cross-Border Fee Boosts Conversion Services.(MasterCard)
May 3, 2005... A plan for a new fee on cross-border transactions is having an effect that MasterCard International may not have intended: encouraging merchants to sign up for currency conversion at the point of sale. Last month MasterCard announced that...

In Brief: Allstate Distribution Unit Hires Sales Exec.(Brief Article)
May 3, 2005... Allstate Distributors LLC in Northbrook, Ill., said Monday that it had hired George F. Veazey to be a senior vice president and the wire house channel's national sales manager. Before joining Allstate Distributors, Mr. Veazey shared...

In Brief: Mercer in $40M Deal for Financial Pacific.(Brief Article)
May 3, 2005... Mercer Insurance Group Inc. and Financial Pacific Insurance Group Inc. announced Monday that Mercer plans to buy all the outstanding stock of Financial Pacific for $40.4 million in cash. The transaction is to be done through a merger of a...

In Brief: Bank of N.Y. Venture Eyes Australia Trust.(joint venture with Trust Company of Australia)(Brief Article)
May 3, 2005... Bank of New York and Trust Co. of Australia Ltd. said Monday that they had agreed to a joint venture that will supply securitization trustee and other agency-related services to Australia-based issuers of debt. Separately, the U.S. banking...

In Brief: Bisys: Outsourcer of Managed Account Plan.(Fiduciary Asset Management outsourcing partner)(Brief Article)
May 3, 2005... Bisys in New York announced Monday that Fiduciary Asset Management LLC has chosen it as an outsourcing partner for a separately managed accounts program. Bisys' WealthManager product, which is designed for the managed account marketplace,...

PlusFunds' CEO an Ally From His Tenure at S&P.(Biography)
May 3, 2005... PlusFunds Group Inc.'s choice of Paul Aaronson to be its chief executive officer puts its further growth in the hands of an executive from a company, Standard & Poor's Corp., that has played an intimate role in the young hedge fund company's...

In Brief: New Duties for Amro Capital Markets Chief.(Brief Article)
May 3, 2005... ABN Amro Mortgage Group Inc. has named Maria Fregosi, the head of its capital markets division, to its executive committee, and given her responsibility for pricing strategies and secondary marketing activities. Ms. Fregosi will be...

In Brief: Subprime Lender NovaStar's Net Rose 13%.(Brief Article)
May 3, 2005... NovaStar Financial Inc. of Kansas City, Mo., a subprime mortgage lender and real estate investment trust, said Monday that first-quarter net income rose 13% from a year earlier, to $33.5 million. Per-share profits rose 1.7%, to $1.19, 24...

In Brief: New E-Loan Campaign: 'Radically Simple'.(Brief Article)
May 3, 2005... E-Loan Inc. of Pleasanton, Calif., launched a new advertising and branding campaign Monday and unveiled a new tag line: "E-Loan: Radically Simple." The campaign, which will cost $58 million, emphasizes pro-consumer values and is meant to...

A Diverse Industry Struggles with Op Risk.
May 3, 2005... If new business concepts have a typical lifecycle, it might go something like this: Idea emerges in B-school, progresses to buzzword, and ultimately becomes business as usual. Think credit scoring or adjustable-rate mortgages, which have...

NCHA Signs Milwaukee Banks.(Brief Article)
May 3, 2005... The eight banks that make up the Milwaukee Clearing House Association have shifted its daily check settlement operations to the National Clearing House Association. The NCHA, which is based in Dallas, said Monday that it is now settling...

In Brief: Open Solutions'$140M War Chest.(Brief Article)
May 3, 2005... The banking technology provider Open Solutions Inc. of Glastonbury, Conn., has closed a $140 million debt offering and plans to use the money to buy companies. The senior subordinated convertible notes will mature in 2035 with a value of...

In Brief: NCR Remote Capture For Cullen/Frost.(Brief Article)
May 3, 2005... Frost Bank of San Antonio, a unit of Cullen/Frost Bankers Inc., is using technology from NCR Corp. of Dayton, Ohio, to offer a remote capture deposit system to corporate customers. Several Frost customers are already using NCR's ImageMark...

In Brief: Kanbay Reports More Profit and Customers.(Brief Article)
May 3, 2005... Kanbay International Inc., a Rosemont, Ill., banking technology outsourcer with most of its operations in India, reported strong first-quarter results and said it is adding clients. The company, which went public last July, said Thursday...

Correction.(Correction Notice)
May 3, 2005... In Friday's paper, the chart on page 9 mislabeled a group of Web sites. Those identified as online loan destinations were in fact trading sites. Copyright 2005 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com...

In Brief: GSE Execs: Bill Could Hurt Market.(Brief Article)
May 3, 2005... Government-sponsored enterprise executives warned that certain provisions of a bill to revamp their regulation could affect the stability and liquidity of the mortgage market. Executives from Fannie Mae, Freddie Mac, and the Federal Home Loan...

In Brief: Fed Official Taking Job at ABN Amro.(Federal Reserve Board official leaves)(Brief Article)
May 3, 2005... Herbert A. Biern, one of the Federal Reserve Board's top enforcement officials, will leave May 13 to become ABN Amro Holding NV's head of regulatory affairs and compliance for North America. Mr. Biern, 58, is one of two senior associate...

In Brief: Study: Slim Odds on Housing Crash.(Brief Article)
May 3, 2005... The odds of a housing market crash are low, but economic changes are making the future harder to predict, the Federal Deposit Insurance Corp. said in an updated study. Last year the average U.S. home price increased by nearly 11%, the...

In Brief: $10B Filing from U.S. Bancorp.(Brief Article)
May 3, 2005... U.S. Bancorp filed a shelf registration Monday afternoon with the Securities and Exchange Commission to offer up to $10 billion of securities. The Minneapolis company, which has about $198 billion of assets, did not specify the terms or...

Comerica Wins Praise for Shift to Retail.
May 3, 2005... Comerica Inc. of Detroit has won favorable attention for its expansion efforts and control over credit quality. On Monday, Fred A. Cummings, an analyst with KeyCorp's KeyBanc Capital Markets, raised his estimate of Comerica's second-quarter...

Editor's Note.(Brief Article)(Editorial)
May 3, 2005... In most aspects of life, the differences between rules and guidelines are clear. Break a rule at work, on the road, or in school and you are typically penalized. Ignore a guideline and you may suffer, but you probably won't be fired, fined, or...

Fighting Terrorist Funding Calls for New Tactics.
May 3, 2005... It seems there are two kinds of banks in the United States: those that have been criticized by their regulator for their failure to comply fully with the anti-money-laundering laws, and those that have not had a compliance exam during the past...

Jersey Banker Eats Up His Part in Promo.(Somerset Hills Bancorp)(Brief Article)
May 3, 2005... A company looking to sell more home equity lines of credit will usually tout its low rates. Somerset Hills Bank in Bernardsville, N.J., has come up with a different hook. Since 2002 it has been using lobster, steak, pasta, and other edible...

University CEO Ranzini Continues His Tech Education.(Stephen Lange Ranzini)(Biography)
May 3, 2005... Stephen Lange Ranzini, the president and chief executive officer of University Bancorp Inc. in Ann Arbor, Mich., has been doubtful about Internet security since he first learned about the World Wide Web, in 1988. Today, he says, one-third of...

Is It Time to Start Issuing Guidelines On the Guidelines?
May 3, 2005... The dictionary says that a guideline is "an outline of policy or conduct," while a rule is a "regulation or bylaw governing procedure or controlling conduct." "Guideline" suggests less rigidity, and for many years that basic difference...

As Phishers Refocus, Small Banks Regroup.
May 3, 2005... The Internet scam known as phishing, which tricks people into revealing personal financial information, has so far concentrated on customers of big banks like Washington Mutual and Bank of America. But the $625 million-asset Naugatuck...

Help in the Hunt For Missing Shareholders.
May 3, 2005... Christopher Bell has plenty on his plate. As the chief financial officer of the $976 million-asset Willow Grove Bancorp. in Maple Glen, Pa., he is responsible for developing budgets, ensuring the accuracy of financial statements, and keeping...

Lifeline for Aggie Bonds: Bill aims to salvage program for new farmers.(Agricultural Development Bond Program on 1981)
May 4, 2005... When Congress created the Agricultural Development Bond Program in 1981, the aim was to encourage banks to lend to young farmers and ranchers who, because of their limited credit histories, had little access to capital. But nearly a...

Raft of Bills On Data Security, But Little Clarity.
May 4, 2005... WASHINGTON -- There soon could be as many bills in Congress to protect consumer data as the number of high-profile breaches that prompted them. "In this atmosphere, I don't see how you get out of doing a bill," said a senior congressional...

In Quest for Micropayments, PayPal Plays Key Role, Again.
May 4, 2005... Sony Online Entertainment Inc. is developing an online auction site that would once again put eBay Inc. and its PayPal Inc. at the forefront of low-value transactions and may have ramifications for the payments industry. The unusual...

Will Investor Push Astoria To the Block?(PL Capital plan to bock stock compensation plan)
May 4, 2005... Astoria Financial Corp. of Lake Success, N.Y., is under fire from PL Capital LLC, a fund manager that has pushed nine of 11 targeted thrifts to sell since 1996. PL Capital claims its interest in Astoria is limited to blocking a stock...

In Brief: Regions Converts Batch of 130 Branches.(Brief Article)
May 4, 2005... Regions Financial Corp. of Birmingham, Ala., said Tuesday that it completed the conversion of 130 former Union Planters Bank branches last week. The branches -- in Arkansas, Texas, Louisiana, northern Alabama, southern Kentucky, and...

In Brief: Moody's: Law Won't Affect Lenders.(Brief Article)
May 4, 2005... Moody's Investors Service Inc. said it does not expect to change specialty lenders' ratings because of the new consumer bankruptcy law. The new law "will likely have little or no impact on the profitability of U.S. bank credit card...

GSE Bills Seen Passing Panels Despite Disputes.(government-sponsored enterprises)
May 4, 2005... SAN FRANCISCO -- Committee votes on bills to strengthen supervision of the housing government-sponsored enterprises are still on track for this month, and the odds of passage are strong, despite the numerous obstacles that have grabbed...

Evans, Nichols to Lead Forum.(Financial Services Forum)(Brief Article)
May 4, 2005... The Financial Services Forum said Tuesday that it had hired a former cabinet member and a Treasury official to be its leaders. Former Commerce Secretary Donald L. Evans, a confidant of President Bush's, will serve in the newly created...

How Can GMAC Get an Independent Rating?(General Motors Acceptance Corp.)
May 4, 2005... Investors are pressing the rating agencies to spell out what it would take to keep General Motors Acceptance Corp.'s rating from falling in tandem with its parent's. The agencies have responded by giving rough guidance -- but no promises....

In Brief: Texas United in Deal For Gateway National.(Brief Article)
May 4, 2005... Texas United Bancshares Inc. of La Grange, which had said it wanted to expand in the state's biggest metropolitan markets, has a deal to buy Gateway National Bank in Dallas for $41 million in cash and stock. Gateway, which has $207 million...

In Brief: 2 More Calif. Banks For Capitol of Mich.(Brief Article)
May 4, 2005... Capitol Bancorp Ltd. in Lansing, Mich., is planning to establish two banks in California. The $3.2 billion-asset company, which owns majority stakes in nearly three dozen banks in nine states, said Monday that it had filed applications for...

In Brief: First Banks to Buy International in L.A.(Brief Article)
May 4, 2005... First Banks Inc. of St. Louis has agreed to buy International Bank of California in Los Angeles. The price was not disclosed. The $8.7 billion-asset First Banks already has 48 branches in California. International has $171 million and...

In Brief: Loss of Household Chops ITLA Profits.(Brief Article)
May 4, 2005... ITLA Capital Corp. in La Jolla, Calif., said first-quarter earnings declined 59% from a year earlier, to $5.7 million, because of the termination of a lucrative tax-refund loan deal with Household Finance Inc. Noninterest income dropped...

U.S. Individual Property and Casualty Companies: By net premiums written* in 2004. Dollars in thousands.(Illustration)
May 4, 2005... (Part 1 of 2) Rank 1 State Farm Mutual Auto Insurance Co. Bloomington, Ill. 2 Allstate Insurance Co. Northbrook, Ill. 3 Nationwide Mutual Insurance Co. Columbus, Ohio 4 State Farm Fire and...

First Data Unit, Moneyflow Target Hispanic Travelers.
May 4, 2005... Two financial services companies are offering Latino immigrants products and services that are linked to an important rite: going home to see their families. First Data Corp.'s Western Union of Greenwood, Colo., has created partnerships...

In Brief: MC Says Purchase Volume Up 11.4%.(MasterCard International)(Brief Article)
May 4, 2005... The value of purchases on MasterCard International-branded credit and debit cards increased 11.4%, to $277.2 billion, in the first quarter, the Purchase, N.Y., company said Tuesday. It issued 697.9 million cards in the quarter, 11.2% more...

In Brief: Visa Sees $50B Potential in Prepaid.(Brief Article)
May 4, 2005... Visa U.S.A. said Monday that it expects the prepaid card industry to be a $50 billion opportunity for card issuers in the next five years. The San Francisco association said Monday that payroll cards, state disbursement cards, and employee...

In Brief: Credit Union Group Hits Aussie Plan.(Brief Article)
May 4, 2005... The Australian Reserve Bank's proposed changes to Visa International debit card interchange fees would hurt smaller institutions and cardholders, according to the nation's credit union trade group, Credit Union Services Corp. Australia Ltd. ...

In Brief: Visa Trades Deals In Horse Racing.(Kentucky Derby sponsorship)(Brief Article)
May 4, 2005... Visa U.S.A. said it will end its sponsorship of the Triple Crown in favor of a five-year deal to sponsor the Kentucky Derby. Beginning next year, Visa will be the only credit card to sponsor the Derby, it said Monday. Visa Signature...

Banks' Managed Account Share Up as Market Grows.(Money Management Institute report)
May 4, 2005... Assets held in separately managed accounts grew steadily in the first quarter, and banks continued to expand their share of the market. The Money Management Institute said its quarterly data showed growth of 12.5%, to $590.1 billion of...

Bank of N.Y. Eyes Overseas Growth In Corporate Trust.(Bank of New York)
May 4, 2005... Bank of New York says it plans to expand its corporate trust business globally by opening up trust units abroad, leveraging the offices it already has in 31 countries. Karen Peetz, an executive vice president and the head of Bank of New...