American Banker articles from October 2003

American Banker archives from October 2003

BB&T Executes on Pledge To Make First Va. Deal Pay.
October 1, 2003... Back in January, BB&T Corp. defended its $3.4 billion deal for First Virginia Banks Inc., its biggest and costliest ever, amid heavy criticism from Wall Street by promising big cost savings. On Tuesday it delivered by announcing plans to...

Ranieri Sees Opportunity in Bank Realty.(Lewis S. Ranieri)
October 1, 2003... In Lewis S. Ranieri's observation, retail bankers and their commercial landlords have long failed to see eye to eye. "The real estate guys and the banks never made peace, because the banks always made the real estate guys spend money they...

No Bulletproof Shield Against New E-Scams.
October 1, 2003... Second of two parts With so many vendors lining up every day to sell new technology to financial services companies, you might guess that some of them are offering software to prevent the latest online scams, which are known as "spoofing"...

Syndicated Shift: Chase Pulls Back; Others Gain.(Industry Overview)
October 1, 2003... Syndicated loan volume fell during the first nine months of this year, as weak merger and acquisition activity, attractive bond pricing, and choosier bank lenders drove potential borrowers away. At the same time, there were signs of a...

Exec Shake-Up at Wamu.(Brief Article)
October 1, 2003... Washington Mutual Inc. said late Tuesday that the head of its mortgage operation was retiring as the Seattle thrift reorganizes its three main business units into two. Craig Davis, 52, the president of the home loan and insurance services...

Executive Changes.
October 1, 2003... Midwest Northern Trust Co. of Chicago has named Connie L. Lindsey to fill the newly created job of deputy business unit head in its worldwide operations and technology group. Ms. Lindsey, who remains a senior vice president, will...

In Brief: Futures Agency May Want Swaps Power.(Brief Article)
October 1, 2003... The Commodity Futures Trading Commission is pushing Congress to put certain bank swap contracts under its jurisdiction, sources said Tuesday. The agency, which would not comment on the speculation Tuesday, is said to want lawmakers to use...

In Brief: House Vote Today on Homebuyer Grants.(Brief Article)
October 1, 2003... The House is scheduled to vote today on a bill that would provide $400 million of federal grants to help low-income Americans buy homes. The bill would provide qualified first-time homebuyers about $5,000 to put toward a down payment and...

In Brief: Trade Groups Call For Fast FCRA Action.(Brief Article)
October 1, 2003... More than 30 trade associations on Tuesday asked Senate leaders to "immediately" schedule a vote on legislation to update the Fair Credit Reporting Act. "This bipartisan, consensus bill, which continues the uniform national credit-granting...

Though It's Sound for Now, Clouds Hanging Over OTS.(Office of Thrift Supervision )
October 1, 2003... Last year's painful round of cost-cutting put the Office of Thrift Supervision solidly in the black, but its budget remains under pressure as industry consolidation continues and more thrifts trade in their charters. The agency cut its...

House Panel Delays Vote on Bill to Form New GSE Regulator.(Brief Article)
October 1, 2003... The House Financial Services Committee said Tuesday it would delay a vote until next week on legislation to revamp regulation of Fannie Mae and Freddie Mac. A vote had been scheduled for Thursday but was rescheduled for Oct. 8. Sources...

In Brief: Bonds Spark Charge For Ind.'s Ameriana.(Brief Article)
October 1, 2003... Ameriana Bancorp in New Castle, Ind., on Tuesday announced a $2.78 million charge related to two lease pools discovered to be part of a massive fraud. The $471 million-asset holding company for Ameriana Bank and Trust said that the lease...

In Brief: New Haven of Conn. Details Share Sale.(Brief Article)
October 1, 2003... New Haven Savings Bank in Connecticut released more details Tuesday about its plan to convert from a mutual savings bank to a stock company and then buy two of its competitors. In documents filed with the Securities and Exchange Commission,...

In Brief: Sterling Deal with RBC Completed.(Brief Article)
October 1, 2003... Sterling Bancshares Inc. of Houston announced Tuesday that it had completed the sale of Sterling Capital Mortgage Co. to RBC Mortgage Co., a Royal Bank of Canada unit. Sterling, which has assets of $3.4 billion, said it received about $100...

The Quandry Over Publicity: Too Much Versus Too Little.
October 1, 2003... When it comes to publicizing what community banks are doing, the industry seems to divided into two groups: those that love publicity and do all they can to obtain it, and those that don't. By their very nature, the publicity hounds make...

Citi to Pull the PlugOn c2it Next Month.
October 1, 2003... Citigroup Inc. will discontinue its c2it person-to-person online payments service on Nov. 9, according to the c2it.com Web site. The service, which was introduced in October 2000 and has recently been run by the Citi Cards division, is a...

In Brief: Concord, Diebold In Outsourcing Pact.(Brief Article)
October 1, 2003... Concord EFS Inc., which owns the Star electronic funds transfer network, said Tuesday that it had begun offering products and services, including hardware, software, processing, gateway access, and maintenance, for automated teller machine...

In Brief: Experian Offering Reports in Britain.(Brief Article)
October 1, 2003... Experian Inc. is selling online credit reports to consumers in the United Kingdom. The Costa Mesa, Calif., credit bureau, which is owned by the British conglomerate GUS PLC, said last week that it will use its database for consumer...

In Brief: Paymentech Agrees To Process for Ford.(Brief Article)
October 1, 2003... Paymentech, a joint venture of First Data Corp. and Bank One Corp., has won a contract to provide electronic payment processing for Ford Motor Co.'s 5,000 dealerships. The deal, announced Sept. 16, will expand the range of payment options...

Principal on 5 Lists As Good Workplace.(Brief Article)
October 1, 2003... Principal Financial Group in Des Moines said it had been recognized by four magazines and a senior citizens group for providing a good working environment. AARP and Working Mother, InformationWeek, Latina Style, and Capital, a Chilean...

Pa. Bank's Agency Deal a Bid for Personal Lines.
October 1, 2003... Looking to expand its personal property/casualty insurance business, Leesport Financial Corp. has agreed to buy CrosStates Insurance Consultants Inc., a Langhorne, Pa., agency. "We already own two insurance agencies, but both of them are...

Wells Unit Hires Investment Firm Principals.(Brief Article)
October 1, 2003... Wells Fargo & Co. has announced the hiring of the principals from Newell Associates to join its investment management unit. Roger Newell and Jennifer Newell, the principals of the Palo Alto, Calif., asset management firm are to join Wells...

Safeco, Not Sized to Win In Life Sales, to Sell Biz.
October 1, 2003... Safeco Corp. is joining the wave of life insurance mergers and acquisitions with its decision to put its life and investment business up for sale. Michael McGavick, the Seattle insurer's chief executive officer, said in a conference call...

Few Ready to Benefit from Check 21: Survey.
October 1, 2003... Though the Check 21 check truncation legislation is expected to become law this year, the banking industry is not nearly ready to take full advantage of it, according to a survey released last week. "Most banks aren't as image-enabled as...

In Brief: B of A Allots $53M For Tampa Branches.(Brief Article)
October 1, 2003... Bank of America Corp. said Tuesday that it will spend $53 million to construct, staff, and maintain 18 new branches in the Tampa market over the next two years as part of a nationwide branching. The Tampa branches are among 550 new ones...

In Brief: Loans' Default Rate Lower Than Bonds'.(Brief Article)
October 1, 2003... In a good sign for U.S. lenders, Moody's Investors Service said Tuesday that the default rate on corporate loans is 20% lower than the default rate on corporate bonds and that the key to avoiding loan losses is keeping companies out of...

In Brief: New York FHLB Discloses New Loss.(Brief Article)
October 1, 2003... The Federal Home Loan Bank of New York on Tuesday disclosed an additional $6.6 million loss on its bond portfolio, which it said would reduce its net income by $5 million. Alfred A. DelliBovi, the bank's president, said in a letter posted...

'Friendly' Lenders Keep Community Ties Strong.
October 1, 2003... Maintaining strong community ties while leveraging branch networks are the keys to developing relationships with small business, say executives at banks that have consistently been ranked the "friendliest" lenders. The Small Business...

Editor's Note.
October 1, 2003... In this Retail Delivery special report, American Banker examines how banks can better serve their small-business customers. Small businesses are frequently called the engine that drives the U.S. economy, but many bankers have passed on the...

How a Zions Unit Draws Female Business Owners.
October 1, 2003... When Laura Kierstead met with representatives of the Women's Financial Group at Zions First National Bank two years ago to discuss start-up capital for a new restaurant, she did not take out a loan from them. Instead, the Salt Lake City...

Case Study: How Zions attracted women who own small businesses.(Brief Article)
October 1, 2003... The Problem: Misperception bank was reluctant to work with them * Many assumed it would be less willing to accommodate borderline loan requests from them than from men * Some, especially those new to business, are uncomfortable...

Comerica Focuses on Minority Merchant Groups.
October 1, 2003... Chamber of commerce breakfasts and Rotary Club lunches have long been fertile grounds for bankers in search of small-business clientele. Comerica Inc. still sends its officers to network with these traditional business organizations. But to...

Personal Touch Key with Small Businesses.
October 1, 2003... If bankers would listen to small-business owners, they would find that service is the key to increasing their share in this market. For example, at the BAI Small Business Conference in Chicago this year, three entrepreneurs discussed their...

Many Entrepreneurs Need Better Financial Planning.
October 1, 2003... At most banks deposit accounts and loans top the checklist of products offered to small-businesses customers. Buried a bit deeper are usually ancillary offerings like leasing, cash management, treasury services, and financing. At the very...

Internet Turns Entrepreneurs Into More Attractive Clients.
October 1, 2003... The Internet has turned small businesses into a money-making proposition for many banks that used to steer clear of them, experts say. Such customers need a lot of personal attention - traditionally delivered through branches. But now...

Off-Sheet Rules: Implemented, Still Not Clear.(the first of a two-part article on regulatory issues on off-balance-sheet structures)
October 2, 2003... First of two parts From the moment rules on off-balance-sheet structures were rushed out by the Financial Accounting Standards Board in January, they were met with a wave of complaints. Ten attempts by the agency to clarify its...

Can Shares in Small Banks Sell Abroad?(Iberiabank Corp. has success attracting American institutional investors)
October 2, 2003... Iberiabank Corp. has had good success attracting American institutional investors through road shows and conference presentations, so last week the Lafayette, La., company decided to try a new audience -- the British. With the help of its...

Another Probe in N.Y., This One on PIN Fees.(New York State Attorney General Eliot Spitzer looks at bank fees for PIN debit transactions )
October 2, 2003... In a move that opens yet another area of inquiry of financial services practices, New York State Attorney General Eliot Spitzer has asked banks in New York that charge fees for PIN debit transactions to tell his office in detail how they...

This Time, Commerce Hit For Disclosing.(complaints about Commerce Bancorp Inc.'s lack of disclosure)
October 2, 2003... Some on Wall Street have often complained about Commerce Bancorp Inc.'s lack of disclosure, and it has responded recently by promising and delivering more information about its internal workings and balance sheet. But a recent instance of...

Fannie Mae Breaks with Treasury on GSE Plan.(government-sponsored enterprises)
October 2, 2003... Fannie Mae said Wednesday that it would oppose a key provision of the Treasury Department's plan to overhaul regulation of government-sponsored enterprises, and an internal company document cast doubt on its public support of the rest of the...

Current Emphasis On Retail Banking Called Temporary.(according to real estate expert Procter Wong)
October 2, 2003... Proctor Wong, a real estate expert specializing in bank branching in New York, has never been busier. "I've been working 15-hour days just trying to keep up with the volume of branch openings," said Mr. Wong, a senior managing director of...

Regions of Ala. to Build Its Way to Growth in Tex.(Regions Financial Corp.)
October 2, 2003... Regions Financial Corp. is still a relatively small player in Texas after several acquisitions in recent years, but it hopes to gain ground by adding about 37 branches in the state's major cities by mid-2005. That would give it a total of...

In Brief: Check 21 Clears Conference Panel.(electronic check-clearing legislation is approved by a conference committee and sent to the House and Senate for final passage)(Brief Article)
October 2, 2003... A conference committee on Wednesday approved electronic check-clearing legislation and sent it to the House and Senate for final passage. The committee had been working since June to reconcile differing versions of the so-called Check 21...

In Brief: OFHEO Deputy Chief To Join Consultancy.(Jimmy F. Barton, the deputy director of the Office of Federal Housing Enterprise Oversight, has left to take a position with the McLean, Va., consulting firm BearingPoint Inc. )(Brief Article)
October 2, 2003... Jimmy F. Barton, the deputy director of the Office of Federal Housing Enterprise Oversight, has left to take a position with the McLean, Va., consulting firm BearingPoint Inc. The agency said Tuesday that it would promote Stephen A....

In Brief: Dems: Boost FundTransfer Disclosure.(Representative Luis V. Gutierrez questions whether regulators should increase disclosure requirements on international fund transfers)(Brief Article)
October 2, 2003... Complaining that consumers are often uninformed about the fees and rates involved with international fund transfers, Rep. Luis V. Gutierrez, D-Ill., said regulators should think about boosting disclosure requirements on the transactions. ...

Executive Changes.(banking industry personnel news briefs)
October 2, 2003... Valley National Bank in Wayne, N.J., has hired Gordon Hunziker as a vice president and a business development officer in its professionals group. Mr. Hunziker was a vice president of the private clients group at Fleet Bank. He has 18 years...

In Brief:Community First's 3-Year Agency Tally: 17.(Community First Insurance Inc. acquires Summit Insurance Group in Frisco, Colorado)(Brief Article)
October 2, 2003... Community First Bankshares Inc. of Fargo, N.D., said Wednesday that through its affiliate Community First Insurance Inc. it has bought Summit Insurance Group in Frisco, Colo. The deal was Community First's 17th agency buy since 2000, it...

In Brief:CNA Surety Names Affiliate's Exec Its CFO.(John F. Corcoran )(Brief Article)
October 2, 2003... CNA Surety Corp. in Chicago has announced that John F. Corcoran will become its chief financial officer and a senior vice president on Jan. 1, succeeding John S. Heneghan. Mr. Corcoran is to join CNA Surety this month as a senior executive...

Evergreen Looks Inside and Out for Growth.(Evergreen Investments)
October 2, 2003... Evergreen Investments' new chief executive officer said Wachovia's asset management arm plans to grow by increasing both its cross-sales to Wachovia customers and its effort with the nonbank clients who now buy about three-quarters of its...

Ellie Mae Hopes New ProductHelps Draw Users for Old One.
October 2, 2003... Ellie Mae Inc. has not conquered the market for loan origination systems used by mortgage brokers and correspondent lenders, but it is still trying. The Dublin, Calif., technology firm said Wednesday it would introduce an application to...

Rising Tide A House Payment Building Up.(Mortgage Bankers Association statistics)
October 2, 2003... The Mortgage Bankers Association said Wednesday that its market composite index, which measures applications for home purchase loans and refinancings, rose 1.1% last week, to 707.2, on a seasonally adjusted basis from the week before. On...

Charter One Exec Offers Details On Switch to Corillian.(Charter One Bank switches from Metavante Corp. to Corillian Corp. due to slow load times)
October 2, 2003... For obvious reasons, financial services executives like to talk about new vendor deals when they are first signed -- but usually they do not step forward to talk about them when they unravel. One such situation did come to light at a...

IBM Has $2.6BIT Deal in Europe.(with Nordea Group)(Brief Article)
October 2, 2003... Solidifying its position as the dominant information tech-nology outsourcing provider, International Business Machines Corp. has landed a $2.6 billion deal with Nordea Group, one of the largest banking companies in northern Europe. The...

Peoples of Mass. Updating Software.(Peoples Savings Bank licenses software from Baker Hill Corp. to help it sell and manage commercial loans)
October 2, 2003... With the mortgage refinancing boom ebbing, Peoples Savings Bank of Holyoke, Mass., says commercial lending will drive its growth next year. Jacqueline B. Charron, its vice president of commercial loans, said it has licensed software from...

Fiserv Processing Unit Get New Name.(Fiserv Inc. changes the name of Custom Outsourcing Solution to Fiserv SourceOne)(Brief Article)
October 2, 2003... Fiserv Inc. has renamed a Pittsburgh business unit to reflect its broader range of services. The subsidiary, formerly known as Custom Outsourcing Solution, is now named Fiserv SourceOne. The new name was announced on Sep. 22. Thomas J....

Frost Orders Custom Recovery Software.(Frost Bank)
October 2, 2003... Dissatisfied with the choices available to replace its system for managing bad loans, Frost Bank of San Antonio hired a software developer to write the kind of program it wanted. The banking subsidiary of the $10 billion-asset Cullen/Frost...

Top U.S. Individual Life, Accident, and Health Insurance Companies: By net admitted assets as of June 30, 2003. Dollars in thousands.
October 2, 2003... (part 1 of 2) Rank 1 Metropolitan Life Insurance Co. Tampa 2 Prudential Insurance Co. of America Newark, N.J. 3 Teachers Insurance and Annuity Assn. of America New York 4 Northwestern Mutual Life...

In Brief: Morgan Chase IPO Settlement $25M.(J.P. Morgan Chase & Co. SEC case)
October 2, 2003... J.P. Morgan Chase & Co. has agreed to pay $25 million to settle Securities and Exchange Commission charges involving its allocation of certain initial public offerings in the late 1990s, the SEC announced Wednesday. The agency, which said...

In Brief: Wamu Ranch Deal Ends a Long Fight.(Brief Article)
October 2, 2003... Washington Mutual Inc. has agreed to sell Ahmanson Ranch to the State of California after a five-year battle with environmentalists and local government over its bid to develop the nearly 3,000 acres north of Los Angeles The Seattle thrift...

In Brief: $1M Settlement with Homeland Security.(Brief Article)
October 2, 2003... A private New York bank with Latin American clients agreed to pay the U.S. government $950,000 to settle charges it broke suspicious-activity reporting rules. Federal law enforcement officials on Wednesday announced the agreement with the...

In Brief: Small-Caps Lead Surge in Bank Sector.(Brief Article)
October 2, 2003... Bank stocks rallied Wednesday, along with the overall market. While shares of some large-cap financial services companies did well after upgrades, small-cap ones posted the biggest gains. Financial Institutions Inc., a $2.2...

Breaking Down Fin 46, Line by (Business) Line.
October 3, 2003... Second of two parts As the new accounting rules for off-balance-sheet entities enter their implementation phase, bankers are grappling with the new burdens they bring. "In today's environment, can you really have principle-based...

A Secondary Shelved: Bank Cites Rates.
October 3, 2003... A Florida community banking company is postponing indefinitely a secondary stock offering that would have raised about $25 million, saying it could not put the money to use without taking what it termed "unacceptable interest rate risk." ...

Bullish Call on Home Equity Lending.(Brief Article)
October 3, 2003... A New York private equity firm run by the former longtime head of PaineWebber Inc. is making a bet on the home equity business. Donald B. Marron's Lightyear Capital on Thursday said it had agreed to buy the home equity business and assets...

In eBay Cobrand, MBNA Cedes Providian Nonprime Prospects.
October 3, 2003... In an unusual arrangement, both MBNA Corp. and Providian Corp. will issue cobranded credit cards for eBay Inc., with Providian getting dibs on the applicants who fall outside MBNA's superprime credit limits, the companies announced Thursday....

Shelby Set To Write FHLBs into GSE Reform.(Senate Banking Committee Chairman Richard Shelby)(Brief Article)
October 3, 2003... Senate Banking Committee Chairman Richard Shelby plans to introduce legislation soon that would overhaul the regulation of the Federal Home Loan Bank System along with that of Fannie Mae and Freddie Mac. The unexpected move constitutes a...

Party Ending'? Some See 3Q Profit Growth Slowing.(Industry Overview)
October 3, 2003... Third-quarter earnings reports at large, diversified U.S. banks may have a familiar ring to them, because second-quarter trends of elevated mortgage and fixed-income revenues have continued. But earnings growth is expected to slow from the...

People.
October 3, 2003... Flight Delay? Jerry Grundhofer, the chief executive officer of U.S. Bancorp, was a no-show Wednesday at a small-business banking conference in Chicago, where he was due to give the keynote address. According to Joe Belew, the president...

Texas Capital Feels New Trust Laws Are on Its Side.
October 3, 2003... A community bank in Dallas is hoping that new state laws raising the investment standards for trustees will boost business for its trust department. The $2 billion-asset Texas Capital Bank held a series of seminars this week to inform...

Pa.'s Willow Grove Back in the Hunt For Big Borrowers.
October 3, 2003... Willow Grove Bancorp Inc. in Maple Glen, Pa., is starting to make more big commercial loans, even though its asset quality is showing signs of weakening. In its annual report, published Monday, Willow Grove said that after largely swearing...

In Brief: Metris Unit Unloads Deposits by Deadline.(Brief Article)
October 3, 2003... Metris Cos. Inc. said it has sold off all the federally insured deposits at its Direct Merchants Credit Card Bank subsidiary and is now in full compliance with regulatory orders. The Minnetonka, Minn., credit card issuer had received a...

In Brief: New Contracts and Offerings at Aurum.(Brief Article)
October 3, 2003... Aurum Technology Inc., a vendor of outsourced core processing services for banks, said it has signed several contracts for its new debit card service and that it plans to add "instant issue" cards in a few months. The Plano, Tex., company...

Amex Calls Prepaid Card Alternative to Its Checks.(Brief Article)
October 3, 2003... American Express Co. has a new prepaid, reloadable magnetic stripe card that it is calling an alternative to its paper travelers checks. Amex will sell the TravelFunds cards itself for now but said it hopes to distribute them through banks,...

In Brief: Banknorth Renames Agencies.(Brief Article)
October 3, 2003... Banknorth Group Inc. announced that it has renamed insurance agencies in Connecticut and Massachusetts to explicitly signal their affiliation with the Portland, Maine, banking company. The Watson Group in Wethersfield, Conn., and Bogino &...

In Brief: Safeco Life Rating Falls to A2.(Brief Article)
October 3, 2003... Moody's Investors Service said it had downgraded the insurance financial strength rating of Safeco Life Insurance Co., to A2 from A1, and put the A2 rating on review with direction uncertain. The actions came after Tuesday's announcement...

Regions Eying Ala., Ga., Fla. For Its Next Agency Deals.
October 3, 2003... Regions Financial Corp.'s latest insurance agency acquisition both expands its operations in Louisiana and adds a niche wholesaling agency -- but the Alabama banking company is still looking to buy closer to home. The $49.5 billion-asset...

In Brief:RBC Asset Unit Nets $53M of Sept. Sales @se#15.(Brief Article)
October 3, 2003... Royal Bank of Canada's investment management subsidiary said Thursday that it had $53 million of net sales in September. RBC Asset Management Inc. said it sold $124 million of long-term mutual funds and had $71 million of money market fund...

In Brief:Fidelity Starts a Fund Trading on Nasdaq.(Brief Article)
October 3, 2003... Fidelity Investments has announced the start-up of an exchange-traded fund that will be traded in the Nasdaq market. The portfolio, along with a domestic index mutual fund also launched by the Boston investment company, is to be based on...

Pa.'s Sterling on Plan in Asset Manager Deal.
October 3, 2003... Sterling Financial Corp., a Lancaster, Pa., banking company, has announced the fulfillment of a longstanding plan with its definitive agreement to buy two Pennsylvania asset managers. The bank said on Wednesday that it will buy Church...

PITCHES & PATENTS.
October 3, 2003... One Duo vs. Fraud... The proliferation of software products that promise to fight fraud continues, and one of the latest is from two companies with ties to giants in the banking industry. Under a reseller deal, Primary Payment Systems...

In Brief: Impropriety Cited in Smith Barney Firing.(Brief Article)
October 3, 2003... Smith Barney has fired a financial consultant for improperly canceling orders for mutual funds after trading hours, according to an internal memo sent Thursday to its private client group. The memo was signed by Sallie Krawcheck, the...

In Brief: Fed Lets Citi Retain Philbro Ownership.(Brief Article)
October 3, 2003... The Federal Reserve Board said Thursday that Citigroup Inc. may retain ownership of its Phibro commodities business. The Gramm-Leach-Bliley Act restricts the mixing of banking and commerce, but regulators had allowed Citigroup to...

In Brief: Bank Stocks Fall in Up-and-Down Day.(Brief Article)
October 3, 2003... The general market flip-flopped several times Thursday, but bank stock indexes traded down throughout, with moderate losses. Small-cap Nasdaq stocks in particular bounced back from recent losses, said Mark Donahoe, the head trader at U.S....

In Brief: Weill Sells $264 Million of Shares Backto Citi.(Brief Article)
October 3, 2003... Citigroup Inc. on Thursday said that it has purchased approximately 5.6 million shares of its common stock, valued at $264 million, from Sanford I. Weill, its chairman and former chief executive officer. He sold the shares, at $47.14 each,...