Newspaper article THE JOURNAL RECORD

Local Federal Forms Securities Company

Newspaper article THE JOURNAL RECORD

Local Federal Forms Securities Company

Article excerpt

Local Federal Bank has formed a sister company, Local Securities, to offer investment and insurance products.

The new unit, which opened Jan. 14, makes financial planning -- including stocks, bonds, mutual funds and a complete line of insurance products -- available in all of Local Federal/Local America's 41 branches.

Local Financial, the holding company for both the Local Federal and Local America savings and loan institutions, as well as the new Local Securities, previously offered investment services through a third party, Invest Financial. The new company thus brings the "one- stop" financial service offerings "in-house" for the first time. The bank's customer accounts from Invest have been automatically transferred to Local Securities. The new service is part of a much larger trend blurring the lines between investment and banking services, noted Tom Loy, director of Oklahoma City University's graduate banking school. Not only are banks jumping rapidly into investments and insurance, but insurance companies and investment firms are offering more traditional banking services like checking and credit card accounts. "The trend's going to accelerate," he said. Congressional panels last year debated breaking down the legal wall dividing the two spheres. Further Washington efforts are expected this year to replace the Depression-era Glass-Steagall Act with a financial modernization bill, although Loy noted it's hard to devise a plan that doesn't make one of the players -- banks, brokerage firms and insurers -- feel slighted. Local Securities makes its headquarters in Atrium Towers, 3501 NW 63rd St., next door to Local Federal's headquarters. Bill Townsend has joined Local Securities as president and chief executive, with Tracy Atwood serving as vice president. Townsend, who earned a Ph.D. in money and banking from the University of Texas in 1967, chaired the Southern Methodist University Department of Finance and directed its Graduate School of Banking. Townsend also served as managing director of the Underwood Newhous investment house and director of the Financial Institutions Group for Rauscher Pierce Refsnes, an investment banking firm. …

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