Reno Gazette-Journal from Reno, Nevada • Page 32

Today's tip 10B Friday, June 30, 1989 Rerio Gaze-te-Journal BUSINESS f'DITOR: jIM GOLD, 783-6322 nasine The "Home Buyer's Vocabulary" (Item 161V) lists commonly used home-buying terms and defines them. Send $1 to: Consumer Information Center, Pueblo, Colo. 81009. Truckee Meadows home resales climb 33 Sales of new homes edges up 2.7 Estimated bailout for MCorp: $2 billion WASHINGTON Federal bank regulators estimated Thursday they will spend $2 billion to rescue the 20 failed banks of the Dallas-based MCorp in the second-costliest bank rescue in history. L.

William Seidman, chairman of the Federal Deposit Insurance said he foresees no failures rivaling it in the immediate future. Regulators picked Banc One Corp. of Columbus, Ohio, the nation's 25th largest banking company, from among six firms bidding to take over the insolvent banks with $13.1 billion in assets. Banc One Corp. is contributing $500 million in a complex arrangement that will permit it to exclude the Texas operation from its consolidated balance sheet and maintain its record as one of the nation's five most profitable banks.

est rates have contributed to increased sales activity," said Byron Smith, president of the association. "Closing figures reflect activity two to three months ago and have not yet caught up with last year's figures because of a slow start in 1989." The most expensive home sold in May through MLS was a four-bedroom home in the southwest district for $550,000. The least expensive home sold in May was $20,000 a condominium in the northeast. The southwest recorded the highest amount of resales during May with 39. Sparks was second in sajes with 32, followed by north suburban with 25; northwest, 24; southeast, 21; southwest suburban, 11; northeast and southeast suburban, nine each and Sparks suburban, six.

Staff reports Home resales increased 33 percent in the Truckee Meadows during May, according to the RenoSparks of Realtors. Overall, sales increased from 122 in April to 184 in May 1989, but decreased 10 percent from May 1988 204-184). Year-to-date sales indicate a 10 percent decrease from 1988 802-706). Listings in the Association's Multiple Listing Service increased during May, posting a 7 percent increase in year-to-date figures Monthly figures rose 5 percent from 667 to 704. The median price for a resale single-family home in May was $105,500.

The median sales price is that point at which half of the sales are above and half below. The average price for a single-family home was $126,359 in May. This compares to an April median price of $102,000 and average price of $118,757. "Warmer weather and a drop in inter Dlum r. vrr, ma I A iJ ft- said slower overall economic growth is a negative for housing.

"We're not looking for a surge" in sales as rates decline, Berson said. "The improvement will be slow but steady." The slower economic growth and high interest rates have resulted from the Federal Reserve campaign against inflation. Although interest rates have begun to fall as the central bank appears to ease its grip, the economy continues to moderate. The Commerce Department said sales of new single-family homes rose to a seasonally adjusted annual rate of 613,000 units in May, but still trailed the 676,000 rate in 1988 and the 671,000 rate in 1987. Uneasiness yer economy increasing Stock prices took their steepest drop in more than three months Thursday, yielding to increasing uneasiness over the slowing economy.

The Dow Jones average of 30 industrials tumbled 46.47 points to 2,458.27, for its biggest loss since it tumbled 48.57 points on March 17. Since the end of last week, when the average reached a new post-crash high, it has fallen 73.60 points. Declining issues outnumbered advances by about 5 to 1 in nationwide trading of New York Stock Exchange-listed stocks, with 273 up, 1,325 down and 395 unchanged. Volume on the floor of the Big Board came to 167.10 million shares, up from 158.47 million in the previous session. Nationwide, consolidated volume in NYSE-listed issues, including trades in those stocks on regional exchanges and in the over-the-counter market, totaled 199.22 million shares.

"People seem to be focusing more on the profitability of individual companies and their overall earnings pictures," said Jon Stousland, vice president of investments at Prudential-Bache Securities in Reno. "Before, they were more concerned with interest rates," he said. "A slowing economy is bullish for interest rates. But in the last few days, there's been some concern that it's good for interest rates but bad for earnings potential." Another local investment expert blamed the drop at least partially on the upcoming holiday weekend, which, for some, encompasses four days. "There was a lack of buyers with the upcoming holiday," said John Klacking, financial consultant at Shearson Lehman Hutton.

"That's very typical a lack of people wanting to hold stocks over the long weekend." Klacking also acknowledged that the slowing economy is worrying some inves- See DOW, page 7B going up a bit per rental contract because of the airport fee. Tom Chinn, sales and marketing manager for Thrifty Car Rental, said the new fee will be passed on, but he's not sure how much each customer will be charged. Chinn said the higher charges mean it will be harder for Thrifty and other off-airport firms to compete with the on-air-port agencies Avis, Budget, Dollar, Hertz and National. "This will put a couple small people out of business," Chinn said. Bob White, the airport authority's executive director, said he expected agencies to blame the airport for boosting customer charges.

But the new fee is just the authority's way of recovering a fair share of money from people utilizing the airport to do business, White said. "We're very sensitive to their con-See CAR, page 7B In other news 1-year T-bills fall: Interest rates on 52-week Treasury bills fell in Thursday's auction to the lowest level since October 1988. The Treasury Department sold $9.0 billion of the bills at an average discount rate of 7.58 percent, down from 8.18 percent at the last comparable auctibn oa June 1. The rates were the lowest since Oct. 20, 1988, when the 1-year bills sold for 7.57 percent.

The new discount rate understates the actual return to investors 8.16 percent with a $10,000 bill selling for $9,233.60. Dollar higher: The dollar staged a puzzling turnaround Thursday when it finished mostly higher in domestic trading despite announcements that a string of European central banks will raise key lending rates. Republic National Bank of New York quoted a troy ounce of gold at $370.15, down from $374 10 Wednesday. points WASHINGTON (AP) Sales of new homes rose 2.7 percent in May as interest rates continued to fall, the government reported Thursday. But analysts predicted that sales would remain slow because of the weakening economy.

Declining interest rates should produce increased home sales in the next few months, said Michael Carliner, vice president of the National Association of Home Builders. "However, while interest rates are more favorable now, the economy is weaker so the response will be less than it would be," he said. David Berson, chief economist for the Federal National Mortgage Association, I- If -J- -A 4 Marilyn NewtonGazette-Journal enjoy one of the casino's new lounges. Car-rental prices By Jim GoldGazette-Journal Tourists flying into Reno will likely find car-rental prices up a little at some off-airport agencies beginning Saturday. That's when the Airport Authority of Washoe County plans to begin imposing a new fee on agencies that pick up car-rental customers at Reno Cannon International Airport.

Though not directly linked, it is also the day lower airplane landing fees take effect. The car-rental firms will pass their new fee on to customers, predicted two agency officials who also said added expenses could discourage tourists from visiting Reno. "We have to wind up passing it on in one form or other," said Bill Dreher, owner of U-Drive America Car Rental System. Dreher said he would put a sign in the U-Drive office window to tell airport cus- ODsyecs that they are paying an extra $1 U.S. foreign debt grows WASHINGTON Tie United States, already the world's largest debtor nation, strengthened its hold on that dubious title in 1988 as its foreign debt surged 41 percent to $532.5 billion, the government said Thursday.

The Commerce Department, releasing its annual balance sheet on America's global economic standing, said the U.S. debt burden had risen by $154.2 billion in 1988, up from $378.3 billion in debt to foreigners the United States owed at the end of 1987. Last year, the government said that foreign holdings in the United States increased 15.4 percent, to $1,786 trillion. American investments abroad rose a smaller 7.2 percent, to $1,253 trillion. The difference between those two figures represents the United Statete net debtor position.

Feds seize 7 more WASHINGTON Federal regulators took control of seven more savings and loans on Thursday, bringing the total under government management to 233 in 32 states. The seven institutions involved in the latest action are located in California, Illinois, Virginia, Missov and Texas. They are: First FederJ Savings and Loan Association and Guardian Federal Savings and Loarr Association, both in Bakersfield, Calif. Amerimac Savings Bank, Hillsboro, 111. Peoples Savings and Loan Association, Hampton, Mid Missouri Savings Association, Boonville, Mo; Missouri Savings Association, Clayton, and Victoria Savings Association, Victoria, Texas.

Paramount details financing NEW YORK Paramount Communications Inc. said Thursday it had taken a step toward satisfying one condition of its $12.2 billion hostile buyout offer for Time as seven major banks agreed to help raise financing for the bid. Paramount said each of the seven banks serving as co-agents in a planned financing syndicate will contribute $1 billion, or a total of $7 billion, toward the $15.6 billion estimated financing costs, although it did not have commitments yet for the rest of the money. Pickens denied board seat TOKYO T. Boone Pickens was joined by a group of Japanese racketeers in seeking greater shareholders' rights in Koito Manufacturing but the corporate raider lost his bid for three board seats Thursday even though he is the company's largest shareholder.

It was "the most unusual shareholders' meeting I've ever attended in my life," Pickens said. People Cordisco McClain TONY CORDISCO and DEAN McCLAIN have new responsibilities with International Game Technology. Cordisco has been named account representative for the systems division at IGT, the Reno-based manufacturer of microprocessor-controlled gaming machines. He will be responsible for servicing existing northern Nevada accounts for the progressive slot systems and for new business development. McClain has been promoted to managing director of IGT Australia, its wholly-owned subsidiary based in Sydney.

He was formerly vice president of international sales. MARY MEWES has been named chairperson of the conductors for the Sparks Community Chamber of Commerce. Others named were: DON JOHNSTON, Sparks Community Chamber of Commerce; CLAUDIA BROWN, Instant Print; JIM BERG. Direct Mail Marketing; and GENE CHOQUETTE, Choquette's Truck Rental. The conductors promote goodwill on behalf of the Sparks Chamber of Commerce.

Ill DEBORAH and RUDY PAVLIK of Reno have been promoted to executives for Nu Skin International Inc. The Pavlik's distribute Nu Skin's body care products including a skin, hair and nutritional line. The products are distributed by individual distributors who are paid for their dollar amount of sales. JOHNNY LAINE of Reno was the winner of K-Lite FM's Great Outdoor Tour Contest. He will receive a recreational vehicle of his choice for one week from Sierra RV Rentals.

Wire service and staff reports 0r imingo Hilton plans parade for reopening By Wayne MeltonGazette-Journal The Flamingo Hilton Reno today kicks off its four-day reopening celebration, to be capped by a Monday evening parade and fireworks. The grand opening marks the end of most work on a four-month, $13 million remodeling project. "Our main aim is to heighten Reno's image throughout its major markets," said John Giovenco, Hilton Nevada Corp. president. "We intend to grow and prosper along with the community, and we are grateful to the citizens here for their faith in us," Giovenco said.

The celebration starts just four days after the Reno City Council tentatively approved a $100 million, 26-story expansion. The council's unanimous approval is contingent on the city attorney advising that the city legally can abandon Commercial Row for the project. "This has been a banner week for us, the weekend celebration combined with the expansion approval. It's an important event for Reno," said James D. Johnson, Hilton marketing chief.

"This shows our commitment to downtown renovation." This spring's work included total remodeling of the main casino, registration area, ballroom, meeting rooms and all 604 guest rooms. The hotel-casino's name was tentatively changed several months ago from Reno Hilton to Flamingo Hilton Reno. The name change becomes official this weekend. Its executives said the name change reflects the property's new image, modeled at the Flamingo Hilton in Las Vegas. The hallmark of the current expansion is a refurbished main casino on Sierra Street's west side.

It features See FLAMINGO, page 7B Bilzerian resigns from Singer as SEC alleges fraud NEW YORK Paul A. Bilzerian resigned Thursday as chairman and chief executive of Singer hours after the Securities and Exchange Commission filed civil securities fraud charges against him and shopping center magnate Edward J. DeBartolo Sr. The resignation came amid mounting legal troubles for Singer and for Bilzerian, 39, who was convicted June 9 on criminal securities and tax fraud charges. The SEC charges filed Thursday included the first public accusation that Bilzerian committed fraud in his $1.06 billion takeover of Singer in February 1988.

The company, now based in Tampa, offered no explanation for Bil-zerian's resignation. In a statement, Singer said Bilzerian also resigned from the company's three-member board of "The businessman's lunch today is senior internal auditor soup and financial analysis salad." A (30 C1M0 Tribun MM SffvlCM, Inc. All Rights HNimd ns directors. No successor was named for Bilzerian, but Singer said that Joseph J. Campanella would continue as president and chief operating officer.

In addition to Bilzerian's personal legal problems, the company faces a host of lawsuits with potential liability totaling more than $600 million. Some of the suits relate to Bilzerian's sale of much of the company's assets. In a 75-page lawsuit filed Thursday in U.S. District Court in Washington, the SEC accused Bilzerian of having lied to the SEC about his source of funds for a series of takeover attempts from 1985-88. He is also accused of failing to disclose in filings that he had amassed big blocks of stock in several of the companies in advance of his takeover offers.

The requires investors holding more than 5 percent of a company's stock to file a disclosure statement. DeBartolo, who provided some of Bilzerian's financial backing, was accused of aiding and abetting the false filings. DeBartolo is the head of a closely held Money supply rises NEW YORK The two broadest measures of the nation's money supply rose in the week ended June 19, the Federal Reserve Board said. The Fed said Thursday the measure known as M2 rose to a seasonally adjusted $3,092.9 billion from a revised $3,088.6 billion the previous week. An even broader measure, M3, rose to $3,979 billion from a revised $3,971.8 billion.

The narrowest measure of the money supply, Ml, fell to $768.3 billion from a revised $769.6 billion. Ml includes cash in circulation, deposits in checking accounts and non-bank travelers checks. M2 is Ml plus accounts like savings deposits and money-market mutual funds. M3 is M2 plus less-liquid accounts, such as certificates of deposit in minimum denominations ff $100,000. Nov.

Is.