Moratorium on US banks takeover by foreigners urged.

Title

Language

English

Source

Business Day Volume XIV (No. 132) August 29, 1980

Year

1980

Subject

Moratorium on payment of debts --United States.

Rights

In Copyright - Educational Use Permitted

Fulltext

Moratorium on US banks takeover by foreigners urged WASHINGTON (Reuter) - The General Accounting Office said there should be a moratorium on foreign acquisitions of US banks with assets of $100 million or more. The recommendation by the GAO does not have the force of law, but a House banking subcommittee said the request gives new urgency to the need for a full scale congressional review of foreign banking in the US. The GAO said in a report it recommended the moratorium because some foreign banks have the opportunity to buy medium to large US banks which other US banks are prevented from buying. However, it said “for the most part’’ foreign investors have improved weak US banks and maintained strong US banks they acquired by adding new capital, changing* management, improving loan portfolios and stopping self-dealing transactions. As of December 1979, foreign investors held $202.5 billion in US banking assets. This accounted for 13.7% of US banking assets. Foreign banks controlled $182.9 billion or 90% of the US assets controlled by foreign investors. Foreign individuals and non-bank organizations held $19.7 billion or 9.8%. The GAO said pending acquisitions by foreigners will increase the level of banking assets under foreign control to 15%. The House banking subcommittee headed by representative Fernand St. Germain said he will hold hearings on the GAO report September 24 and 25. US trade deficit declines in July WASHINGTON, Aug. 28 (AFP) - The US trade deficit dropped perceptibly in July, particularly because of a 17% decrease in oil imports in both value and volume terms, the commerce department announced Wednesday. What the commerce department calls the “apparent trade deficit” was only $1.85 billion in Juiy, against $2.28 billion in June, $3.96 billion in May, and $1»78 billion in March. Oil imports in July were only 175.5 million barrels, against 213.1 million barrels in June, making the July figure the lowest monthly level in more than four years. The value of July oil imports was $5.7 billion, against the $6.6 billion of June. The department said that during July, all US imports calculated on an FAS basis amounted to $18.07 billion, down 3% from the June figure. On an CIF basis, overall imports amounted to $19.9 billion, a drop of 4.8% from the previous month. A drop in American exports in July, contrasting with almost continuous rises for some months previously, reflected a reduction in exports of manufactured goods, which amounted to $12.01 billion in July compared with $12.27 billion in June. Jobless Britons exceed 2 million LONDON (Reuter) - war peak of 1,695,600, Total UK unemployed after a record monthly this month topped two rise of 89,900 registered million for the first time as unemployed, since World War II, with Employment Secreta sharp rise in the under- ary James Prior said in a lying trend, government statement the failure to officials said. reach sensible pay in creases in the last few The number of jobless years caused unemploy adults, seasonally ad- ment to be higher than justed, was a new post usual or necessary. WG wants more access to Japanese market WEST BERLIN (Reuter) - West German Economics Minister Otto Lambsdorff said he expected Japan and other industrialized countries to make their home markets more accessible in the future to West German imports. It is “grotesque” that Japan exported three million cars in 1979 and only Imported 65,000, despite a pronounced preference for certain foreign cars on the Japanese market, he said in a speech at the opening of a trade fair. But if import controls were brought in against Japanese goods, they might be extended to other countries, resulting in a worldwide wave of protectionism which could ultimately threaten German jobs. MITI chief deems bank discount rate too small TOKYO (Reuter) — Minister of Inter national Trade and Industry Rokusuke Tanaka said the 0.75% cut in the official discount rate to 8.25%, made by the Bank of Japan last week, was too small, consider ing the fact that the bank raised it by a large margin of 1.75% to 9% last March. Tanaka told a press conference he be lieved the discount rate is not functioning properly in Japan, because it usually takes one month after the newspapers start spe culating about its possible change before an actual decision is made. The present practice of fixing the dis count rate through exclusive high-level con sultation between the Bank of Japan and the finance ministry should be altered, so that wider economic circles may partici pate in the consultation for quicker deci sions, Tanaka said. He also said the discount rate is impor tant in stabilizing the balance of payments and preventing yen fluctuations. The Japanese Cabinet council on Give someone or give yourself the gift of class. economic measures will meet around Sept ember 5 to adopt a package of economy boosting measures, including hastening of conclusion of public works contracts, in creased housing finance, and promoting industrial plant exports, Tanaka said. This is because the Japanese economy has been showing signs of a slowdown, in cluding a large number of bankruptcies and a decline in electric power consumption, which cannot be explained by an unusually cool summer alone, he said. HKISOh Distributed by. 604 MANGA AVENUE. SAMPALOC METRO MANILA, PHILIPPINES TKL. 60-30-81 to 83

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