European Stars and Stripes (Newspaper) - July 19, 1991, Darmstadt, Hesse                                Friday july 19, .1991 the stars and stripes Page 17 .\..v,n\. A. S \ \ s is a today s tip housing starts shot ahead 5.2 percent in june the third straight monthly increase in the United states boosting the annual rate of new construction Over the 1 million Mark for the first time in seven months the government said wednesday. All regions of the country posted Strong gains except the West where the housing Industry has been weak in recent months. Analysts contend the housing recession hit Bottom in january but they continue to believe that any recovery will be slow and bumpy. Conversion rates London up thursdays Early rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $370.35 an ounce Sliver at $4.44. A july 17 july 18 British Pound.1.6466 1.6676 German mark.1.796 1.7717 French franc.6.0955 6.0130 dutch guilder.2.0235 2.0125 belgian franc a a italian lira.1,337.00 1,320.00 Swiss franc.1.5605 1.5365 greek drachma.195.68 194.35 turkish lira.4,381.60 4,365.90 saudi arabian riyal.3.7503 3.7502 Spanish peseta.112.61 111.58 portuguese escudo.154.00 152.50 Canadian dollar.1.1468 1.1535 austrian schilling.12.642 12.53 norwegian krone.7.001 6.933 danish krone.6.9425 6.8785 the Only official rate concerns the Sale of British pounds to . Personnel for personal use. Through Friday this will be $1.71 for a Pound based on a Price fixing thursday afternoon at military banking facilities. Car makers see few signs of upturn yet Detroit a the automobile Market has yet to show much sign of pulling out of its slump and when it does japanese producers Are ready to grab a bigger slice of the pie the Heads of the nations leading automakers said. A we Are not through the Shock wave yet with the consumer a general motors corp. Chairman Robert Stempel said wednesday. A i think its a Little premature to conclude the Economy has picked up that much a said Ford motor co. Chairman Harold Poling. They were responding to remarks tuesday by Federal Reserve Board chairman Alan Greenspan who said the recession was Over and a recovery under Way. A i was a Little disappointed with the remarks by the fed chairman a Stempel said. A i think he a done a Good Job in controlling inflation but he said a Well just let the recovery come along  to some of us that has an ominous  . Sales of North american percent in Early july from a Strong period one year earlier. For the year through july 10, sales were Down 13 percent. Point to big Money from Little Guy Bank mergers by Rob Wells the associated press new York while a few flashy Mega Bank mergers Are getting plenty of attention a sizable number of smaller banking companies Are reshaping the Industry by quietly absorbing failed thrifts and Small commercial Banks nationwide Industry analysts say. The value of private Bank merger deals increased by More than five times in the first half of the year from $330 million in the fourth Quarter of 1990 to $1.8 billion in the second Quarter this year they said. The troubled banking environment coupled with the popularity of Stock Swap arrangements Are two key reasons for 48 announced mergers so far this year according to Bank mergers and acquisitions newsletter in los Angeles. If the trend persists Strong and growing Banks such As Banc one corp. Of Columbus Ohio and Ned ban corp inc. Of Detroit will eclipse their new York based counterparts As the titans of american banking. Banc one among the nations 20 biggest Banks with More than $31 billion in assets this year alone acquired three smaller institutions first Illinois corp. Of Evanston 111. Marine corp. Of Springfield 111. And four Ohio based Banks owned by pc financial corp. Of Pittsburgh. The takeover targets each have assets Between $1 billion to $2 billion. A Banc one has a Good possibility of becoming one of the largest Banks in this country a said Daniel j. Piro executive editor of Bank mergers amp acquisitions. The quiet approach of Banc one Isnit As flashy As mondays agreement Between chemical banking corp. And manufacturers Hanover corp., both of new York to create the nations second largest Bank with $135 billion in assets. But it will have an Impact. A other huge deals pending include. North Carolina based a cab  bid for a amps sovran corp. Of Georgia which would create a $116.5 billion asset Bank. That would be the nations third largest. Citicorp of new York is the largest. The recession and pressures to Cut costs Are driving Many Bank combinations. Frank Anderson a Bank merger specialist for the Stephens inc. Underwriter broker firm in Little Rock ark., said passage of the 1989 savings and loan bailout Law figures into the merger trend. The Law pressures thrifts a to be merged bought or converted into commercial Banks a Anderson said. The Resolution Trust corp., the Agency established to clean up failed savings and Loans has sold 229 thrifts so far to either Banks or other savings and Loans. A put All those ingredients in the oven and out comes the cake that says consolidation is coming a Anderson said. The mergers break Down in two categories deals Between two companies and government assisted transactions for failed Banks or thrifts. Buying a failed Bank has drawbacks because the value of the franchise has diminished on its slide into receivership said the newsletters Piro. A i think it is very difficult to buy a Trou bled Bank a John Mccoy Banc one chairman said earlier this year. A you can have 50 of the brightest Mas people with masters degrees in business administration. And you can to fix it. About the Only thing that fixes a bad real estate loan is More Money and  the deals Are occurring on All Levels. During the second Quarter Union planters corp. Of Tennessee a regional Bank with $3.9 billion in assets grew by about 25 percent when it announced the acquisition of Fidelity ban shares inc. Of Tennessee with $1 billion in assets. Wilmington Trust of Delaware a $3.8 billion banking company expanded its Deposit base throughout the state when it announced a Deal with the $400 million Sussex Trust of Delaware. Other lesser known but important Bank deals this year include Ned ban corp of Detroit buyer of gainer corp., a $1.5 billion Bank in Northern Indiana key corp of Albany n.y., and first Empire state corp. Of Buffalo which together acquired parts of the failed go dome savings Bank of Buffalo with assets of $5.8 billion and Norwest corp. Of Minneapolis which bought United ban shares in Colorado with assets of $5.5 billion. Most of the combinations involve exchanges of Stock a transaction that has become More attractive because Bank Stock values have risen from extremely Low Levels since last fall. A a it a a lot easier to Trade Stock because you do not have to go out and raise Cash in the capital markets a Piro said. Faltering video Industry meets to share worries Las vegas apr attendance is Down 7 percent at this years video dealers convention and Industry officials Are worried that things May get slower yet As Cable to Competition increases and the Market changes. A the Days of just announcing a title and shipping it Are Over a said Eric Doc Torow the executive vice president of Paramount Home video. He was among about 14,000 people attending this years video software dealers association convention in Las vegas this week. Those at the convention have cited the recession higher video rental prices and the Rise in pay per View technology offered by Caole television companies As major concerns for the months ahead. Some Cable systems will soon be offering As Many As 150 channels Many of them Able to show selected hit movies with just a Telephone Call from the customer. Also of concern is the possible move to metered videocassettes which can count How Many times a renter watches a movie. If top gun is seen three times by one renter m one evening for example the store owner could triple the Price he charges for the movie. While such a system would bring retailers More Money per film some at the convention fear it would also prompt a flood of consumer complaints. A in theory it sounds wonderful a said Don Rosenberg the executive vice presi a but in practice its a  in facing such economic challenges retailers were advised not to try to fall Back on blockbuster titles but to Branch out a bit. A if there a one thing that concerns me in theory a metered videocassette sounds wonderful. But i practice it s a  association executive Don Rosenberg about the development of the Home video business it is the emphasis in your order patterns on exploitable genres and subject matter and a seeming unwillingness to support to the same degree Quality dramas and More experimental motion pictures a Peter Hoffman president of Carol co pictures told the retailers. Some executives said their companies Are beginning to diversify the titles they offer. World vision plans to Issue six videotapes of twin peaks the Quirky television series recently cancelled by Abc. A there Are a lot of people who did no to watch it who thought they should have watched it a explained Robert Sigman world visions executive vice president. Turner Home video which until now Hus been known mainly for issuing video casette versions of such classics As gone with the wind is tapping into persian Gulf War footage compiled by its sister company can. A six cassette package of War in the Gulf videos narrated by in no a Bernard Shaw is priced at $99.98.pan am Deal Falls through new York a pan american world airways said wednesday that it failed to agree with United airlines Over the Sale of its latin american and Caribbean routes. Pan am spokesman Alan Loflin said that the Carrier wanted United to hire More pan am employees and that the Price was not nigh enough. Loflin would not say How Many employees United wanted or specify the amount of the offer. The announcement came shortly after pan am a creditors rejected United a bid. The creditors said the offer was inadequate. Loflin said the creditors rejection was not a Factor in pan am a decision. Neither airline has commented on the specifics of the offer made by United for the last remaining International routes of pan am which filed for chapter 11 Protection. Leon Marcus an attorney representing pan am creditors also declined to elaborate on the offer or the creditors problems. As creditors met wednesday they also decided to defer voting on Delta air lines agreement with pan am to buy All its routes across the Atlantic and beyond for $260 million Marcus said. The creditors wanted More details he said. Pan am has been negotiating asset sales that Are expected to Lead to its dissolution and an airline executive familiar with the carriers strategy said pan am is seeking to preserve jobs for As Many of its 22,000 employees As possible