European Stars And Stripes (Newspaper) - January 23, 1986, Darmstadt, Hesse                                Page 2 the stars and stripes thursday january 23,1986 Oil Price plunge jolts exporters Stock Mart London a plunging world Oil prices this neck have brought forecasts of bad limes Tor heavily indebted Oil exporting countries such As men leu my sent Slacks tumbling in new York and London where investors fear repercussions on Western blinks cml interest rates. Dut the 20 percent drop in crude Oil prices since last wednesday is Good news Tor Oil importers such in Jap in. South Korea and inc european economic Community according 10 a Sample Survey of Nilli  by the associated press. The in test  cum tuesday when the Secretary general of he organization of Petroleum exporting countries Ali a Tiju of Libya said the 13-nation Oil producers Cartel should Hiiva it Market share of about is million barrels 11 Duy 2 million barrels a Day above ils current out put Ceil ing. Brili in s main Nulli sea Oil product Brent crude promptly fell below $20 for the first time since 1975. Brent crude which had been Selling for s30 u barrel two months ago and s2q.kq on monday was quoted tuesday As Low is si9.70 a barrel. Oil prices have been pushed downward in recent years As a result of Low demand be cause of by world recession. The recession. In turn was triggered a partly by big open Price increases in the 1970s. Attica s statement was in keeping with of pc s decision lust month in abandon its strategy of  production in an Effort to prep up prices. Instead the organization re solved to secure and defend a fair share of the world Market even if that meant lower prices. The decision was aimed at winning Back customers who had been buying Oil More cheaply from non open suppliers such As Britain and Norway. The saudis whose production restraints have effectively underpinned the world Price arc now making up Tor lost time and pumping far Mare Oil than their agreed rate of production the financial times Brit Ain leading bus Incis daily wrote last sat urday. As a result the Oil Price is indeed falling oui of bed. This is partly then a Strug Gle far  tuesday s drop in the Price of Brent crude is widely expected to prompt the Brit ish government to hike base interest rates later this week in order to bolster the value of the Pound. Slock prices have tumbled in anticipation because higher interest rates mean increased borrowing costs for Indus this is a Polke sketch of inc robbery my pet in drawing at right he wears it Cap and wire rimmed Sungu Iesu $2,000 Reward offered in pm food and robberies Hanau Germany the criminal investigation div is offering a s2.000 Reward for information leading to the arrest and conviction of a Man wanted in the robberies of u Post Exchange and two Woodland stores. The suspect is described As a heavyset Black male with Broad shoulders. He is 25 to 35 years Aid weighs 210 to 240 pounds and is 6-foot-1 to 6-foot-4. The Man has a Light to medium complexion. The suspect should be considered armed and dangerous according to the poster distributed by the c1d. Special agent John Greely said the suspect robbed the Francois Cavern poet Exchange of $2,091 on oct. 25, a Woodland at Thomas Jefferson Village in Worms of ,297 on nov. 22 and the Woodland at Fliege Horst Cavern in Hanau of 52,189 on nov. 26. He was armed with an automatic pistol either a ,45-Calibcr or 9mm, with wooden grips. He was seen in the Vicinity of the incidents before and after the robberies. In the first iwo robberies he wore a Gray sweat suit and dirty Tennis shoes. In the third he wore a Battle dress uniform with out name insignia. He had on a Blu Cap and red wire rimmed sunglasses anyone with information should Call onely or special agent Leroy Keith at Hanau ets 322-875 or 322-8303, Hanau military 2309-8751/8303 or Hanau civilian 06181-52616. Pecoil production in millions of barrels per Day 19771 79 81 b3 estimate 86 Chicago Tribune graphic sources american Petroleum Institute. Cynus j. Lawrence inc. Rial investment. Shudders also run through the new York Stock Exchange on tuesday Over fears that plunging Oil prices could mean big trouble for Banks and Oil businesses. A major worry is that one or More third world Oil producing nations could default on loan repayments to Western Bank be cause of the fall in Oil revenues. This could in Lurtis. Spark a major Bank ing crisis. Oil producing nations such As Mexico Venezuela and Nigeria collectively owe Many billions or dollars in inter National Loam. Ban America reports $337 million loss is fined $4.75 million san Francisco Ai the same Day ban America corp. Was hit with a record 14.75 million Fine far cur Rency transaction violations the holding company for the nation s largest Bank reported a huge loss and suspended dividends for the first time in 50 years. Nobody expected things to be ibis bad said Donald Crowley an analyst with Keife. Brute tic and Woods in san Francisco. Even Samuel h. Armacost Bank America b president and chief executive was forced to admit that "1985 was a year of wrenching  the Treasury department ordered the Fine tuesday against Dank or Amer Ica the nation s largest Bank in deposits for failing to report 17,000 currency transactions each exceeding is 0,000, Between 19so and Early 1985. It was the largest Poliy Yel in a crackdown on those i is actions that have resulted in fines against 11 other Banks since june 1985, while the government did not Indi Cate any criminal activity on Bank America s part it did say Trie Bank s failure to report the transactions could have impeded investigations into Money laundering by drug dealers and tax evaders. The Tine which exceeded the $2,25 million penalty levied against san fran Cisco based Crocker Bank last year was reflected in the Parent corporation s 1985 financial results. Ban America also based Here and the nation s second largest Bank holding company behind Citicorp of new York reported a net loss of $337 million or s2.68 a share for 1985, compared with earnings of 1346 million or $1.77 a share the year before. The loss was largely the result of loan problems it was ban America s biggest loss Ever and the first since the depression. The loss ranks third among the biggest losses in . Banking history behind the �1,1 billion by Continental Illinois in 1984 and the �456 million by sea first or Seattle in 1933. Ban America now owns sea first. The financial results which caused directors to suspend inc february dividend for common Stock inc first time since 1933 included a net toss of 1178 million or .27 a share for the fourth Quarter that ended dec. 31. That Ion surprised some people. Things arc much worse now than anyone had expected said Brent Eren Sel an analyst for Dean Witter Rey nolds inc. In new York. Analysts had expected the company to show an operating loss but probably Bottom line Black Ink for the fourth Quarter added Crowley. He said bunk America s $180 million pretax profit from the fourth Quarter Sale of finance America corp., a Finan Cial services subsidiary was expected to allow it to Post a modest profit. But big increases in charge lifts for bad Loam and provisions for possible future loan losses overshadowed that. Loan areas particularly hard hit in clude California agriculture real estate shipping and latin american countries Armacost said. Along with tile gain from the Sale of finance America the 1985 re stilts in clude a pretax gain of s310 million from the Sale of the company s Headquarters building that was reflected in the third Quarter. The Day of bad news caused Bank Andriea Stock to drop three quarters of a Point closing at Al 2 a share a three year Low. I m not sure where the Slock Price will Stop said a Ronsel