European Stars And Stripes (Newspaper) - January 24, 1986, Darmstadt, Hesse                                Page 2 the stars and stripes Friday january 24, 19b6 Price drop jolts Stock marts a gives exporters a Shock London a ranging world Oil prices this week have Bro Vii forecasts of bad times for heavily  Cip Orting countries such is Mexico anus Cut  tumbling in new York and Lun Fluit a Haj investors fear repercussions on Banks and interest Rales. But the 20 percent drop in Cru Forl prices Lince last wednesday is go for Oil importers such us Jap Korea and the Liuro Penn eco Nofle coir immunity. According u a a  nations by the Assoc Kilcy pres the latest development de tuesday when the Secretary acne Rajmat the organization of Petroleum Eire Goring countries. All Altiga of Libya producers Cartel share of about it Mii million barrels a a put Ceil ing. Britain s main North sea Oil product. Brent crude or Nelly fell below $20 for the first Lime Junce 1979. Brent crude which had co Kliing for $30 a barrel two months ago Jed j20.so on monday was it Iotch Tucny As sow As s14.70 a barrel. Oil Fly have been pushed downward in recent of Lars is a result of Low demand be cause Mofdy world recession. The recession in Tut Drzai triggered partly by big open Priam Crews n the 1970s. A Tizol s statement was in keeping with. Dec s decision last month to abandon it Satey of restricting production in an Effort to prop up prices. Instead the organization resolved to secure and defend a fair ring c in 13-nation Oil have a Mark i barrels a Day 2 its current out of the world snark Al even if that sent lower prices. The decision was aimed at winning Back customers who had been buying Oil More cheaply from non open suppliers such a Britain and Norway. The saudis whose production restraints have effectively underpinned the world Price arc now making up for lost time and pumping for More Oil than their agreed rate of production the financial times flail Kjin s leading business daily wrote last Sai n n result inc Oil Price is indeed  this is partly then a Strug Gle  tue my s drop in the Price of Bren crude is widely expected to prompt the Brit ish government to hike base interest rates later this a Svok in order 10 bolster the value of the Pound Stoelt prices have tumbled in anticipation bemused higher interest rates mean increased narrowing costs for Indus Iraj investment shudders also ran rough the new York Stock Exchange on Tir Day Over fears that plunging Oil prices Couf mean big trouble for Banks and Oil Busini a major worry is that an Fri More third world Oil producing nations wild default on loan repayments to West eve Banks be cause of the fall in Oil  could in turn spark a major banking Al acis. Oil producing nations such As Menco Wenezuk Ela and Nigeria collectively owe. Mifty Bil Lions of dollars in International Loans. Pecoil product in millions of i 1977 79 by is "85 Estl maie86 Chicago Tribune graphic sources Cyrus j. Lawrence officials in non open Mexico sneaking i on condition of anonymity said tuesday thai if its Oil also fell below �20 a barrel the country would a in dire trouble mexi co the world s fourth largest Oil producer and exporter already is in its fourth year of economic crisis with a foreign debt of 196.4 billion. Officials in Malaysia and Indonesia both Oil producers said they anticipate a fall in prices i his year malaysian officials said they plan to counter by increasing production 18 percent to 510,000 barrels per Day. But non Ope Malaysia is not expected to suffer much from lower prices because it has other major exports Uch As Palm ii rubber Andi manufactured goods 1 indonesian legislator by run ginning said \ we have been ready to meet any problem caused by the Price fail even a drop from the current open Price of 128 10 �24 would not affect Indonesia s development program he said but if the Price goes As Low As $20 a barrel we might be forced to narrow the priority list and have to postpone some less important projects he said in South Korea which imports All its Oil government officials tuesday welcomed the Price drop As Likely to boost the Economy. In Japan which imported 99.6 percent of its Oil last year the Tokyo newspaper Mai Nichi Shimun predicted another Sharp Price fall when demand for heating Oil drops is the end of Winter. In Brussels sources close to the executive commission of the 12-nation european eco nomic Community said studies Isufi oiled continuing Price fall could boost dec eco nomic growth by 0.3 percent. I America fined reports $337 million loss san Francisco 7 Day Bank America corp. Was hit i Cord s4.7s million Fine for currency trans action violations the holding company for the nation s largest Bank reported a huge loss and suspended dividends Tor the first Lime in 10 years. Nobody expected things to be his bad said Donald Crowley. An analyst with Keife Bruyette and Woods in san Francis co. Even Samuel h. A Maccal Bank Arnerich t president and chief executive was forced to admit that "1985 was a year of wrenching  the Treasury department Tine tuesday Ugains Bank old Law the nation s largest Bank  failing to report 17, transactions each exec Diri of Doo Between 1980 and Early 19 the largest penalty yet in a crack Down on those transactions that have resulted in fines against j1 other Banks since ibs. Ivorn men did not indicate any Crimi atom a on ban America s part it did say thelh0n lure to report the transactions could hav film " tight torus into Money laundering dealers and tax evaders the Fine which exceeded Elj lion Penally levied i based Crocker . Was reflected in the Parga Ftp oration i 1985 financial Rica also based Here and Theillon s second largest Bank holding com Pany behind Citicorp of new York reported a net loss of s3 37 million or s2.68 a share for 1985, compared with earnings of$346 million or ,77 a share the year be fore. 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 inc  billion by Continental Illinois in 1984million by Infix i pretax profit from a which caused direct spend the february dividend for Stock the first time since 1933 Al j loss of is 78 million or1.27 a Irahim Kuhe fourth Quarter that ended dec. 3lrtgmass sir Pristu sume people. Sir things Are much worse now one had expected said Brent Erin my analyst for Dean Witter Reynolds inc. Inner York. Analysis had expected the company to she an operating loss but probably Bot Tom line Black Ink for the fourth Quarter added Crowley. He said Bank America s is go million was expected to allow it to a modest profit. But big increases i charge offs for bad Loans and provisions for possible future loan losses overshadowed that loan areas particularly hard hit include California agriculture real estate shipping and latin american countries Armacost said. Along with the gain from the sate of i Nanc America the 1985 results include a pretax gain of s3 10 million from the Sale of Imp any s Headquarters building  third Quarter the d. To Huil news caused Bojcik America Stock Othir i Irtira of Point closing at $12 i Low. I m not sure where inc Stock Price Slop said Erin Sci. Explosion possibly caused air India crash expert says new Delhi India a a Canad an aviation specialist testified wednesday that a Sharp bang heard on a tape recording of cockpit conversations indicates an explosion possibly caused an air India jumbo Jet to crash into the Atlantic last june kill ing All 329 people aboard. Bernie Caiger a flight recorder expert told a judicial hearing that he based his conclusion on analysis of the Boeing 7479 digital flight data recorder and cockpit voice recorder. The flight recorder showed distortion an was very erratic and the cockpit recorder registered a Sharp bang for one third of a second indicating the possibility of an explosion before the aircraft plunged into the Ocean off Ireland on june 13, cig Craid the distortion on the flight recorded tap and the abrupt noise registered by the voice recorder could not have been caused by a conventional aircraft Man Euver he said adding that there possibly was an explosion aboard the plane. If Here was an explosion be said it could have taken place in the plane cargo Section or somewhere in the rear part of the  Caiger said further research is needed to pinpoint he cause of the crash. The Canadian expert was the first of about a dozen witnesses scheduled to testify in the resumed High court hearings. The first phase of the hearing was held but november. Indian investigators have theorized that sikh extremists at Odds i h the Indian government planted a bomb aboard the plane i Canada where the flight originated. Two sikhs were arrested in Canada last november und charged with unlawful pus session of explosives police said the arrests Jav arc part or an investigation into inc air India crash and an explosion the same Day at the Tokyo Airport that killed two ban Gage handlers. However they were not formally linked Loire two incidents and were later released on Bajt. Five top Indian scientists have concluded in a report to Ute court that an explosion apparently occurred in the front cargo hold Accord ing to the press Trust of India news Agency. The scientists based their finding on Analy Sis of the plane s wreckage and conducted a number of tests including experiments wit plastic  said the report the holes and other features observed in ombre in parts of the wreckage showed thai they must have been due to Shock wave and Penc ration of High velocity fragment following the explosion pit quoted the report As saying. India s director of air safety Hoshiar Singh Khola said in u report submitted 10 Pic court last november that there appear Tt3  in the cargo Section he based his finding on analysis of he voice recorder and the air control Tower tapes at Shannon Ireland