Regulators seize bank in Texas
Federal regulators announced late yesterday that they had seized control of First City Bancorporation of Texas in what they said was the eighth-largest bank failure in U.S. history. Federal regulators denied any political influence in the timing of the closure, which came just four days before the presidential election.
Federal regulators said that First City had total assets of $8.8 billion as of June 30, which would make this the eighth largest bank failure in U.S. history. The largest bank failure was the collapse of Continental Illinois National Bank in 1984, which had $33.6 billion in assets.
Macy posts $1.25 billion loss
R.H. Macy & Co. reported a $1.25 billion fiscal-year loss yesterday, even as it put the finishing touches on a five-year plan to restore profits and get out of bankruptcy.
The loss underscored Macy's deterioration in the Aug. 1 fiscal year in which it took $988 million in charges for its bankruptcy proceedings and built up an operating loss of $263 million. It lost $150 million in the year ending Aug 1, 1991. Sales fell to $6.45 billion from $6.7 billion.
Talks on farm subsidies set
The United States and the European Community scheduled yesterday a weekend round of negotiations to try to resolve a dispute over cuts in farm subsidies before the U.S. presidential election.
U.S. Agriculture Secretary Edward Madigan will meet tomorrow in Chicago with Ray MacSharry, farm chief of the 12-nation trading bloc, to discuss the latest offers to settle the fight.
Japanese banks come to rescue
The Japanese banking industry announced plans yesterday to start its own company to liquidate hundreds of billions of dollars in bad loans made during the speculative boom of the 1980s. But analysts and industry insiders said they doubt a rescue funded only by the banks themselves would end the financial crisis. The debt mess, they said, will eventually require government intervention.
Oil companies post results
Sun Co. Inc. announced yesterday that it would drop most of its oil and gas exploration outside Canada and concentrate on selling gasoline and other products. To pay for the changes, Sun said it recorded a $459 million charge in the third quarter that contributed to a $320 million loss.
Quaker State Corp. said profits fell 69 percent in the third quarter.
And Shell Oil Co. said its work force would be reduced by 20 percent, up from cuts of 10 to 15 percent announced previously. Shell said it made $28 million in the third quarter, compared with a $14 million loss a year ago.