American Banker

American Banker is a Monday to Friday daily trade newspaper owned and published by SourceMedia, Inc. American Banker is headquartered in New York, N.Y. and was first published in 1836. Readers of American Banker are primarily high ranking banking executives and those with billions of dollars in assets. Seventy percent of American Banker readers hold senior management positions and 66 percent come from financial institutions, with 55.8 percent of those working in the commercial and retail banking sectors. Twenty-one percent of the readership control assets totaling $50 billion and above. The newspaper is published across the United States.In the 1960s, then-editor William E. Zimmerman traveled around the United States reporting on the civil rights movement by asking African-Americans what they needed from the banking industry and in turn interviewing local bankers to find out what services they were providing for African-Americans.In 1988, American Banker reported that the Japanese have the 10 largest banks in the world and that the U.S. banks, for the first time in three decades, were knocked out of the top 25 due to the falling dollar. Citibank, the largest bank in the U.S. at the time, fell from the 17th largest bank in the world to 28th, with $101.1 billion in deposits.American Banker was also the first national publication to report extensively on the fall of Penn Square Bank in Oklahoma City. Marc Hochstein is the Executive Editor, John DelMauro is the Vice President and Group Publisher, Richard Melville is the Group Editorial Director, Banking, and John DeCesare is the Group Publisher.

Articles from Vol. 162, No. 202, October 20

ABA to Ask Congress to Tax Credit Unions with $25M in Assets
Staking out an ambitious position, the American Bankers Association is planning to ask Congress to tax credit unions with more than $25 million in assets. To keep federal and state tax exemptions, credit unions with assets below that level could not...
Argument Widens on Whether Fed Has Set Growth 'Speed Limit' Lower Than Necessary
Fears of higher interest rates are based on the notion that the economy has a "speed limit" beyond which inflation will reappear. Fresh data about business conditions are instantly pored over to find out whether the economy is cruising beyond that limit-or,...
Banking on (More) Change: Computer-Based Training Can Ease Demands
If change is a certainty in the financial services industry, so is the need to train staff members more effectively and efficiently. Computer-based training is picking up the slack. The banking industry's need for professional training has never been...
Barnett to Sell Newly Acquired Fla. Offices to Ala.'s SouthTrust
To simplify its own pending merger with NationsBank Corp., Barnett Banks Inc. said it would sell First of America Bank Corp.'s Florida fran-chise to SouthTrust Corp. for $160 million in cash. Barnett had just taken possession of the $1.1 billion-asset...
Big Banks Pressure Investment Firms to Carry Low-Margin Backstop Loans
Hit hard by investment banks in the highly profitable leveraged loan market, commercial banks are fighting back. Loan syndicators at big banks are asking corporate clients to get their investment bankers to participate in the large but very low-margin...
Card Issuers Beat Expectations as Losses Slowed in 3d Quarter
Credit card specialists posted varied results in the third quarter, amid further signs that the rise in loan losses is starting to slow. MBNA Corp. recorded a 33% jump in net income over the third quarter of 1996, to $171.8 million. Capital One Financial...
Citicorp's Reed Casts Eclectic Talent to Lead Retail Banking Charge
The latest hires show Reed's grand vision for Citicorp: a globally renowned powerhouse promising to be all things electronic to tomorrow's consumer. Six high level Citicorp hires in less than two years, primarily on the retail side of the institution....
Comerica VP Sees No Black Monday Rerun
Ten years ago Sunday-October 19, 1987-the U.S. stock market experienced its greatest single-day crash, when the Dow Jones industrial average fell 22.6%. Though the crash's 10-year anniversary has many analysts speculating whether the market is due for...
Credit Scoring: Most Customers Don't like It - or Know Its Happening
More banks are using credit scoring to speed evaluations of small-business loan applications, but most customers don't like the idea. Out of 400 owners in the 1997 American Banker survey of small businesses, 53% said they would be less likely to choose...
Falling Credit Costs Raise Thrifts' 3Q Profits
From California to New York, thrifts reaped the fruits of a strong economy in the third quarter. More jobs and higher housing prices put consumers on a stronger footing and enabled thrifts to shrink their holdings of bad loans. That freed them to reduce...
Financial Firms Hike Ad Spending, Stressing Versatility
As the stock market continues to rise, so does advertising by financial services companies trying to build a brand name. Brokerage firms ratcheted up their advertising spending by a hefty 34.1% during the first seven months of 1997, compared with the...
Financial Institutions Are Recognizing Benefits of Aggressive Self Regulation
While supervision is vital and necessary, Ernst & Young's Donald Vangel says that greater self regulation is helped through-not driven by-advances in risk management technology. From Donald T. Vangel's perspective, the movement toward risk-based...
GreenPoint Promotion May Signal Acquisition Hunt
The promotion of Bharat B. Bhatt to chief operating officer of GreenPoint Financial Corp. is seen as a sign that the thrift may soon go on the acquisition trail. Analysts said having Mr. Bhatt oversee the company's daily operations will let chairman...
House Likely to Miss Narrow Window for Ballot on Bill in '97
The House Commerce Committee's on-again, off- again vote on financial reform is likely to be postponed once more- greatly diminishing chances for House passage in 1997. Commerce Committee Chairman Thomas Bliley insists his panel will begin voting this...
How to Transform Direct Marketing from a Cost Center to a Profit Center
Bank marketers can get out of the "Don't Ask, Don't Tell" Club by using MCIFs to track marketing campaigns, return on investment, and revenue generation. What if your CEO gave you 24 hours to produce figures proving this year's direct marketing programs...
Loans Delivered to a Customer's Front Door: Mobile Officers Save Time, Money
Equipped with laptops, mobile loan officers preapprove mortgages on the spot. They can keep track of prospects, referral sources, and rate changes, and conduct more business in less time. Someone gets a new job, relocates, and needs a house in his new...
MasterCard, Visa Grasp for Upscale Shoppers
MasterCard International announced that Bank of America and Household Credit Services will be in the first wave of issuers of its new, upscale credit card, the World MasterCard. MasterCard unveiled plans last year for the World card and other potential...
Mastering the E-Commerce Challenge
It may not be ranked on the New York Times best seller list, but "The Electronic Commerce Report," authored by Bill Burnham and recently published by Piper Jaffray, is a crucial read for all bankers searching for a smart, to-the-point overview of how...
Nat. City Seeks Retail Investors to Cut Volatility
Tired of wild swings in the stock price of National City Corp., its management has decided to try changing its ownership mix. The Cleveland banking company is making a concerted effort to create a "more balanced shareholder base" by attracting individuals,...
Selloff Hurts Bank Stocks despite Solid 3d Quarter
Banks were caught in a strong wave of selling in Friday's market. Although most banking companies reported solid third- quarter numbers this week, as did many companies in other sectors, the market overall fell sharply on concerns about the technology...
Sign of Times: He Made Banks Work for His Loan
When Kevin Clark set out to find a small-business loan, he resolved to leave no stone unturned. The president and co-owner of Edge Software Services, Warrenton, Va., called on no fewer than 10 banks to see what they could offer. He ruled out one bank...
Small-Town Ohio Bank Grows as a Big Buyer
Marty E. Adams has big plans for Citizens Bancshares. Acquisitions are expected to double Citizens' assets, to $2.5 billion, by the end of 1999 while maintaining an 18.5% return on equity. Buying 11 nearby banks over the last 10 years, Mr. Adams has...
Split Panel to Press for Law Easing Bankruptcy
A sharply di-vided government panel today will recommend overhauling bankruptcy laws to make it easier for consumers to eliminate their debts. However, four of the nine National Bankruptcy Review Commission members will attach a fiery dissent to the...
Strategic Technology Investments Can Eliminate "Business-as-Usual" Pitfalls
The consequences of poor technology spending are more than wasted dollars; banks that don't invest strategically can't support their business plans-or differentiate themselves. Some conventional wisdom: only 15 to 20 percent of banks' technology spending...
Tech Stocks Leave Market in the Dust
Technology stocks outpaced the general market in the first three quarters of 1997. The Dow Jones industrial average was up 24% and the Standard & Poor's 500 index 29%. The Nasdaq composite, which lists many technology firms, rose 32%. But all of...
Valuation Concerns Deflate Checkfree's Stock
A wave of investor optimism pushed Checkfree Corp.'s stock price up 46% in the second week of October, but its shares are coming down to earth as some analysts worry about overvaluation. The stock price was $25.50 at midday Friday, after rising as high...
Visa: Betting on Global Initiatives to Increase Cards, Build Payment Standards
Post-Visa Interactive, president and CEO Edmund Jensen says the global card association will focus on what it does best-brand, acceptance and standards-for its 20,000 bank-members. Rumors of the fate of Visa Interactive had been circulating for months....
Visa CEO Says American Express Now Less of a Competitive Threat
American Express doesn't worry Visa the way it did a year ago. Edmund P. Jensen, president of Visa International, said American Express failed to deliver on the competitive threats that were so prominently on credit card bankers' minds. In Puerto Rico...
Wells Testing Branches That Offer Coffee, Dry Cleaning, or Lunch
Where would you go to get a neatly pressed pleat, a cup of double-shot decaffeinated latte, and a six-month certificate of deposit? How about the nearest bank branch? Wells Fargo & Co. will offer all these services starting early next year in seven...