taking a stand on banking

[...]... subsidiary of the Union Bank of Switzerland managed debt issues for BorgWarner Acceptance Corporation, Transamerica Financial Corporation and Allied Signal—all in New York Many foreign banks have been on a spree, buying shares in American investment banking establishments Q: That's right Not long ago Sumitomo Bank of Japan purchased a five hundred million dollars share in Goldman Sachs, one of Wall Street’s... researchers argue that the U.S banking system was fundamentally sound prior to federal deposit insurance and was not prone to destabilizing banking panics.” That was said by Jonathan Neuberger, Economist for the Federal Reserve Board of San Francisco on April 21, 1991 He also said, “research suggests that banking markets are fundamentally stable and not prone to contagious runs." Q: What did currency have... that exceeded the $100,000 insurance limit in those institutions Q: Economists fear that a large bank failure could result in adverse macroeconomic consequences and instability in the financial system A: Don't get over dramatic After all about ninety percent of small-bank failures are resolved through P &A, purchase and assumption transactions In a P &A, all the deposits are assumed by a healthy take-over... diversification? A: Congress has been urged to pass legislation that would overhaul the Glass-Steagall Act and permit banks to engage in underwriting of commercial paper, mortgage-backed securities, revenue bonds and mutual funds I remember when now retired Senator William Proxmire, was chairman of the Senate Banking Committee, he wanted to dismantle all or part of the Glass-Steagall Act He saw it as a legacy... have too many banks for our population in this country anyway Do you agree? A: I'd like to see the market place take care of that possibility Mr Rosenberg pointed out that American consumers are served by 12,600 commercial banks, 2,000 savings and loans and 16,000 credit unions For instance Canada has 65 commercial banks, Japan has less than 150 commercial banks for a population of about 120 million... banking collapse in America in the early 1930s, attributes the relatively smooth sailing that took place over the same time period in Canada to the fact that ten banks operated four thousand branches throughout Canada This gave Canada's banks a broad geographical dispersion for their banking risks The independent bank, far from being the strength of small town America was its greatest weakness according... new nonbank companies Q: It's hard to determine what institution is and is not a bank now days A: It's interesting to see how that came about Congress had defined a bank as an institution that accepts demand deposits and makes commercial loans In a 1980 case, Gulf & Western Corporation substituted personal loans for commercial loans and viola, the first consumer bank was recognized Q: Some people say... Secretary of the Treasury for International Affairs, said in early 1990, “Basic deregulation, sweeping change or bold challenges to the way the existing system benefits traditional Japanese financial institutions are hard to find Full deregulation is what is needed… The failure by Japan to provide full access to its markets is particularly serious, given Japan's current financial and economic position... understand that BankAmerica serves over five million households and has been earning over a billion dollars a year A: That's right It is reportedly the most profitable bank in the nation In 1990 it purchased banks in Oregon, Arizona and New Mexico and now owns the largest in bank in California, Bank of America, and in Washington, Seafirst Q: I heard that between 1987-1990 its consumer lending more than doubled... versus almost $217 billion at New York based Citicorp But although Citicorp has more assets than BankAmerica, BankAmerica is ahead in profits and is controlling its expenses The BankAmerica-Security Pacific merger is supposed to save about $1 billion in annual operating costs over a five year period Besides, Bank of America has more equity capital than Citicorp Q: And with its equity capital it can expand . Borg- Warner Acceptance Corporation, Transamerica Financial Corporation and Allied Signal—all in New York. Many foreign banks have been on a spree, buying shares in American investment banking. relatively smooth sailing that took place over the same time period in Canada to the fact that ten banks operated four thousand branches throughout Canada. This gave Canada's banks a broad. responsible." Taking a Stand on Banking Q: You realize of course that many people blame the costly savings and loan bailouts and the increased number of bank failures on deregulation. There are currently