European Stars and Stripes (Newspaper) - December 28, 1991, Darmstadt, Hesse                                Saturday december 28, 1991 the stars and stripes c Page 17�?� Money matters today s tip assets of the nations 586 Money Market Mutual funds fell $6.14 billion in the latest week As investors funnelled funds into the surging Stock Market the investment company Institute said. Jacob Dreyer vice president and chief economist for the investment Institute attributed the drainage to a historical year end pattern intensified by a migration of investors out of Money funds into the Stock Market. Conversion rates London up a fridays 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 $353.15 an ounce Silver at $3.90. Dec. 24 dec. 27 British pound.1.8760 1.8772 Gentian Mark.1.508 1.5170 French franc.5.1725 5.1850 dutch guilder.1.7126 a belgian franc.31.25 a italian lira.1,151.40 1,151.80 Swiss franc.1.3435 1.3515 greek drachma.174.95 174.40 turkish lira.5,016.00 5.036.80 saudi arabian riyal.3.7501 3.7505 Spanish peseta.96.70 96.26 portuguese escudo.135.22 134.75 Canadian dollar.1.1568 1.1595 austrian schilling.10,7475 10.65 norwegian krone.6.00 5.9620 danish krone.6.94 5.8990�? these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.48 through monday based on fridays noontime Price fixing. New York Exchange new York up a the 15 most Active stocks in new York Stock Exchange composite trading on thursday. Slock Cit corp Rwjr Nabisco hid Amer express co Hanson pc Avistar inti Westinghouse Al gent electric Glaxo holdings Philip Morris Bristol Myersq Bank America ism corp at amp to company Pepsico inc Owens Illinois american Exchange new York up american Stock exc Stock Americus desc Iva corp Wang labs inc b Amdahl corp Western digital Hasbro inc metro Mobile b Energy service Ich corp am exploration Slid Lait Nal chg. 4,011,300 10% up 1 3,503,800 10% up 3,165,600 20% up 1 3,081,600 191/4 up 1,577,500 2% up % 1,544,400 16% up 1 % 1,537,800 75% up 1 1/4 1,420,200 30% up 1,390,000 76% up 2% 1,317,400 86% up 2 % 1.268,900 38% up 1 % 1,228.800 88v4 unch 1,195,900 38% unch 1,179,900 33% up 1,172,700 11 % up a tin 10 most Active stocks in Lange composite trading thursday. Satas Lail Nat Clif. 510.600 6% up1 % 353,200 37% up 2% 326,600 2% up % 322,400 15% up 301,600 2% up 233,600 37% unch 231,400 22% unch 210,500 1 % off % 178.200 3% up 175,700 2% on % Dow Jones new York up Dow Jones dosing Range of averages thursday. Low Clou Chang 3036.23 3082.96 up 31.98 1281.76 1 315.02 up 28.96 218.77 220.52 up 0.57 1105.14 1124.31 up 14.18 30 industrials 20 transport 15 utilities 65 Slacks High 1.97 3101.1 1320.07 221.52 1130.22 pm downgraded the new York times two rating agencies lowered their grades thursday on debt issued by the general motors corp. And its finance unit citing their doubts about How readily the cutbacks by the company would reverse its fortunes. The expectation of lower ratings has already raised the interest rates the company must pay for financing. Rescuers to use 30s tactic to Aid ill financial institutions Washington a Federal regulators Are reaching Back to the depression for ways to curb ballooning costs and Cushion the blow to an already fragile Economy As they face the collapse of hundreds of Bank and Thrift institutions in 1992. The governments strategy at least in some cases will be to pump government assistance into troubled institutions before they fail. The revival of the Rescue strategy used widely by the depression Era reconstruction finance corp., is generating charges that the deals will protect Bank investors in addition to depositors. But regulators say the tactic May be the Only Way to break what has become a self sustaining Cycle of Bank failures leading to massive government sales of assets. The sales of Loans and repossessed properties further depress real estate values which in turn sour More Loans and topple More Banks. A if things get Tough. Its certainly a Way to go said l. William Seidman former chairman of the Federal Deposit insurance corp. The Odic and the office of Thrift supervision have been working on strategies that while somewhat different share common goals. Both emphasize minimizing the governments costs by moving into ailing institutions Early before their value As a business has disappeared and before customers and employees have deserted it. The objective is to stretch the $95 billion provided by Congress last month a a $25 billion taxpayer appropriation for a amp is and a $70 billion Federal line of credit for handling sick Banks. Timothy Ryan director of the office of Thrift supervision is fleshing out a program he Calls a Early Resolution assisted  Over the past four years Thrift regulators have seized roughly 900 a amp is. With Only about 60 near certain failures remaining Ryan a Agency is turning to a group of nearly 400 a amp is it categorizes As troubled by poor earnings and Low capital but not necessarily doomed. The Agency is worried about the Prospect of liquidating several Large institutions in the group. As a cheaper and less disruptive alternative it Hopes to entice the institutions shareholders into agreeing Early to a government assisted merger by promising not to wipe out their Stock Exchange traders Grin after the Market set a record High thursday. Market continues rally edging past 3,000 Mark new York a the soaring Stock Market swept the Dow Jones Industrial average to its second consecutive record High Friday extending a yearned rally that has added More than $225 billion to the value of . Stocks. The Dow average of 30 Blue Chip stocks added another 18.56 Points to thursdays closing High to finish at 3,101.52 a its first move above the 3,100 Mark. The average the Best known barometer of the Stock Market has racked up 187.16 Points or 6.4 percent since last Friday when the Federal Reserve lowered a key interest rate. Broader measures of the Market also have set new highs in the sunup which has boosted shares of Large and Small companies alike. The total value of stocks traded on All the major . Markets As measured by the Wilshire associates Index hit $3,934 trillion Friday up from $3,708 trillion before the feds move. The feds full Point reduction in the discount rate dropped the rate charged on Loans to Banks to a 27-Ycar Low. The drop prompted commercial Banks to make similar reductions in their prime lending rates to customers. The reductions inspired Hopes of a Long awaited turnaround in the Economy. They also lowered returns on Bank accounts certificates of Deposit and Money Market Mutual funds driving investors Back to stocks. The investment company Institute a Mutual fund Trade group reported that More than $6 billion was drained from Money Market funds in the past week As investors funnelled holdings into the Stock Market. Money Market funds invest in cd and Short term government and corporate debt securities. A apparently individuals Are moving funds out of their Money Market funds and investing in Bond and equity Mutual funds instead a said Edward Yardeni a Market economist for the . Lawrence inc. The markets Advance encountered resistance Friday from some investors already Selling to take profits. A investment. Meanwhile the Odic is working on what William Taylor its new chairman Calls a Hospital program for sick Banks that Lack a prospective buyer. In effect the government would become owner and operator of some of the 200 Banks expected to fail next year. Some members of Congress including the Senate banking committees chairman sen. Donald w. Ring la jr., d-mich., and sen. Terry Sanford d-n.c., Are contemplating going further and reviving the reconstruction finance corp., which bought Stock in hundreds of Banks during the depression. Robert l. Glauber Treasury undersecretary for finance said such a step is unnecessary. Regulators have sufficient leeway to use rec like methods in the relatively few cases where it was needed he said. A in certain circumstances this really could save Money. But it has some real Pitfalls a he said. One of the biggest Pitfalls is political. By partially protecting shareholders the deals look a lot More like bailouts than current methods of handling failures. Holidays bad for retailers despite flurry by the los Angeles times a last minute surge in Christmas buying was not enough to significantly boost Holiday sales for Many of the nations retailers. The sluggish results give a further indication that Consumers Are not ready to Lead the ailing Economy to a recovery. This was the third dismal Holiday shopping season in a Row and could Lead to further financial difficulties for a number of retailers. The National retail federation reported 0 percent to 3 percent growth for november and december Over results in 1990. Such a showing is poor because 1990 itself was a bad year and the numbers arc not adjusted for inflation said Jack Schultz federation president. Actual december figures will not be reported until next week. A it was awful Quot said Edward Weller an analyst with Montgomery securities a san Francisco investment company the a terrible Job Market also portends a sub Par recovery for the nations retailers said economist Sandra Shaber of futures group consulting company in Washington. A the problems in retailing Long preceded this recession and will i fear continue once we re in  Early on the Holiday season took on a promotional Aura with stores touting discount upon discount. Even with a raft of Holiday promotions though much of the merchandise on retailers shelves across the country stayed put. With shoppers focusing on functional moderately priced gifts the climate was right for stores such As Wal Mart the huge discounter based in Bentonville ark., and the Gap a san Bruno Calif based merchant of practical casual Wear. Kmart corp., based in Troy mich., said its 2,254 . Stores experienced a cheering sales surge at the Tail end of the season with jewelry Small appliances and Basic toys proving most popular