Oakland Tribune from Oakland, California • 65

mnWg.HM.up MMMggp-gg. IHP i.mm-m-m i 1- 1 i umnw'iiil I ttyi Mr YV 1 r- (Oakland tlritiune f. OSSY-JONESWEDNESDAY, SEPT.23 FMDowJonssslockamragae Open Nigh Low Clew dp HUS M7J1 W25 MIN MUI S39J7 SUM -4SI NUI VU1 NUV WCOi U9-XXIM NU7 SUN SIS -IN aoM JOTYn IS UN S5S F10 Wednesday, September 23, 1981 iL Passbook interest rate boost OKd By Clyde H. Farnsworth kMPMi WASHINGTON Federal regulators Tuesday decided to permit banks and thrift institutions to raise by to -percentage point the interest rates they pay to an estimated 40 million Americans who bold passbook savings accounts. new regulation, effective Nov.

1, will bring the rate offered by savings and loan associations and mutual savings banks to 6 percent' from the current 5 to percent Commercial banks will be allowed to pay as high as 5 to percent against 5 to percent Tuea-: day.1 The action, which Treasury Secretary Donald T. Regan said was part of efforts to give the small saver a better break, was taken, by the Depositary Institutions Deregulation Committee, a body of regulators (created by Congress last year. The secretary of the Treasury is Its chair- policies, have helped keep rates high; they contend. Theres also doubt about Reagan'S economic package, and whether. Its tax cuts will result in bigher budget deficits which would require more Treasury borrowing.

Reagan is scheduled to 'discuss his plan on television Thursday night Analysts also attributed part of the decline to an interview with noted stock market analyst Joseph Granville, who predicted Tuesday in London that the Dow Jones industrial average will fall to 550-650 in the coming weeks. Those comments reinforced the market's pessimissm said Hilde-garde Zagorski, an analyst with Bacbe Halsey, Stuart Shields Inc. in New York. This is already a very fragile market Stock prices also fell sharply In London today. Sunbeam led the NYSE most-active list, down 1 to 39.

IC Industries, off 1 to 20tt, said this week it was offering 454 million for Sunbeam, which said it would consider the bid. NEW. YORK. Stock prices Slumped across the board today in a market still saddled with doubt about high interest rates and. President Reagans economic program; analysts said.

More than 1,350 Issues lost ground on the New York Stock Exchange, where declines led advances 7 to 1. The Dow Jones industrial average was down 4.75 points to close at 840.94. But the measure was off more than 15 prints earlier in today's session. The NYSEs composite index fell 154 to 68.19. The -market value Index, at the American Stock Exchange was down 10.13 at 29054.

Big Board volume was about 53 million shares near the close. Wall Street analysts said many investors remain skeptical that interest rates, despite recent declines, will drop further since many economists expect more heavy borrowing by the Treasury in the fourth quarter. That, borrowing, combined with the Federal Reserve's tight-money But the move' which will put additional earnings pressure on the hard-pressed thrift Industry, was -sharply criticized by representatives of that industry. William OConnell, executive, vice president of the United 8tates League of Savings Associations, representing 4,700 savings and loan, as-: sociations, called it a monumental and incredible blunder. The leagues chief economist James W.

Christian, said the higher rates would cost the Industry 8500 million, offsetting some of the advantages that thrift associations hope to get beginning Oct i by hank SMHMfe Jr. in passbook aavinga rates approved Tuesday. See Pag F-14 Graphic ahowa chief wants Regan to ba fired or to resign I tow to 4 in Business By Wayne Bslsssrt Gold hills; dollar stabilizes fcif Donald Regan broke wltfPtfcq presidents budget program and.be should be fired or resign and made to answer to the public," Shane said to applause Shane also called for the, abolition of the deregulation commit- tee, saying that it isnt responsible to? any constituency and that its record-' is shameful, The issues are bousing andth-. economy, Shane said, and they-cant be attacked with; MtsalsslppCS riverboat gambling. The tragedy Is that while the gambling is going on, the social and economic system for delivering housing is being dismantled." increased the maximum interest rate 1 on passbook savings accounts by half a percentage point effective Nov.

created a new retirement savings account without an interest rate ceiling; and allowed new methods of setting interest rates on money market certificates that could bolster certificate rates when market rates are falling. There is a blindness here, Shane said. Donald Regan cant perceive the totality of tip subject be is tampering with. Shane. said the treasury secretarys actions fly in the face of President Reagans economic program.

the moves will cost thrift institutions mcke than 8500 million-a year, for the increase in passbook rates. Leonard Shane, president of the California League, told its annual convention here today that Regans actions are total and absurb insanity. He said: They' ensure a further constriction of ah already depressed bousing market To consciously Increase the cost of funds at this time is a 'direct blow to the American dream of owning a home. It ignores the social needs of this country. By a 3-2 vote with Regan leading the way, the deregulation committee CORONADO Treasury Secretary Donald Regan should be fired or resign, the president of the California Savings Loan League said today, because of Regans irresponsible and shameful action Tuesday that raises the cost of government funds.

Regan, as chairman of the Depository Institutions Deregulation Com- mlttee, orchestrated a series of moves that improve the return savers can -earn on deposit accounts. The U5. League of Savings Associations has estimated LONDON The dollar advanced for the second straight (lay today on most foreign exchanges, and dealers said they believed the American currency finally had stabilized after a two-week decline. Gold feU. Here are late dollar rates compared with late rates Tuesday: 3.3760 West German marks, up from 1.9490 Swiss francs, up from 11430; 5.43 French francs, up 5.39875; 3.53635 Dutch guilders, up from 1,155.45 Italian lire, up from 1.8135 British pound, down from 1.8330, and 1.1985' Canadian dollars, up from 1.1983.

Grid closed in London at 845555 an ounce against 846350. In Zurich it dosed at 845650 against 84615G Silver also fell, closing In London at 8955 an ounce against 810575. States thrift institutions could lose leading role Fold sales up slightly DETROIT. Despite a. continued dealer incefiUve program and the introduction of somgrebates.

Ford MoferCo.S new car sales ere wont be able to compete (with federally-chartered thrifts). They need flexibility on mortgages in todays market However, Assemblyman Tom Bane, D-Van Nuys, the Legislatures leading authority on-thrift legislation, isnt willing to take the blame. He says it lies with the states real estate IndustQr, which blocked due-on-sale legislation to Saqcp-mento because It feels It would hinder 1 bousfpg sales. There are 400500 real estate licensees to California, Banes notes. -That's too powerful bloc to get something passed with that sort of force against it, Banes says the realtors opposition Is a mia-' take that will come back to haunt them.

The state will now convert to federal charters and branch across state ltoes, tee Assemblyman says. This will be detrimental to the California savings and loan associations, as a group, are regarded as very healthy while the rest of the thrift Industry, especially to the Northeast, la reeling from the effects of high Interest rates. 7 But on the eve of Its 91st annual convention starting today to Coronado, near San Diego, the California Savings and Loan League is being told it could lose its position as the leading influence on the nations thrift industry. For the first time to 30 or 30 years, Rollto D. Barnard, president pf the U5.

League of Sav-togs Associations, says, the state of California has fallen behind the real world to terms of savings and loan management Aa examples of the state thrift Industrys malaise, Barnard prints to two things: A switch to circumstances that now- sees federally-chartered thrifts having more, latitude than those chartered by the state of -This is causing many California thrifts to convert to federal charters, something that Barnard says will cause a dramatic loss of tothe state. Assessments on state-chartered association provide all of the money to operate the office of the Mate savings and torn commissioner. a Tbe State Legislatures failure to act on the due-on-sale laws that are' wreaking havoc to the thrift industry. The doe-on-pale dene allows to require that parties assuming a mortgage refinance it at current and to almost all cases, higher interest ratea. Federally-chartered thrifts can -make that demand, but because of state court rulings, California thrifts and those to 19 other states cannot.

The inability to use the due-on-sale clause is of the main reasons state-chartered institutions are converting to federal charters. 1 The due-on-sale clause la a state-legislated matter, Barnard says while printing the finger of Name at the Legislature, and tbe state chart-' roseust 06 percent in the second 10 days of September from the seme period last year, the automaker said today. Although tiie actual number of Ford cars sold during the Sept 11-30 period was down to 31,733 from 35,456 cars in the 1980 period, the percentage increase is based on the rate of sales per day. There was one more day in the 1980 period. For the first 30 days-of the mouth, Ford sales were up 115 percent to 64503 from 61586 i Bee THRIFT, Page F-14 V.

-f LTV bids for Grumman on Dark Towen VA 'Intel Ntf Dallas LTV Cop. today it plans to offer 845 a share for about 70 percent of the outstanding common stock and convertible securities of New York-based Grumman Gorpi in srdeal that would total 8450 million; The offer for 10 million shares of common stock is the first step In a plan to acquire 100 percent of the voting equity of Grumman, said Pari. Thayer, LTV chairman. -Thayer said LTV wants to merge Gram-, man with its Vought Corpi subsidiary. By Altan Marmots Vwuyinw LOS' ANGELES The battle for' the elec; tronic game market Is beginning to get Intense, and- Milton Bradley la showing its hand with all tbe hoopto.of a highly orchestrated advertising campaign.

-V-. The nations third-largest toy maker, the Mil-ton Bradley Go. has yet to find the formula that guarantees success to what has proved to be a rather fickle market But with Its new entry, a combination computer-board game, called Dark Tower, the company Is talking as if ''it has a i winner. -Dark Tower, which carries a retail price of 855 to 866 has already been to stores for three or. New engine line for AMC unlock the secret of the tower wad first intrilw duced last week at tee Los Angeles Magic Club.

Dark Towers development started ln JaniKt aiy 1979. We wanted a game that would cater toi a market that already existed Dungeons Dragons, Ditomassi said. That made tt one step. easier. With other games, we are trying to created the market Dark Tower will not attract jhe DUiigeoi and Dragon afidonado-But thafs a li2 trine market We wanted the next level down people' who had heard about art p.butwhqr didnt want to be Dungeon and Dragon freaks.

the. game had been designed 'and a program chosen for Dark Towers cominiter, iV-took, nine months fo makq. sq -blectronic chtorS Because of Us Intricate program; the game cost perhaps 8200500 more than usual a total of 8750,000 to 81 million. By November 1980, a name had been chosen a name calculated to hint of mystery, rate playing, art medieval mysticism. A box was de-.

signed to capitalize on tbe same end "i Orson Writes, whom tee toy company saw as the 'J mysterious man who brought -the- Martin, to', America to 1938, was chosen as the games spotanum. Milton Bradley Introduces' 30 to SO. new 1 games ench year, but only four to six of them still 00 store shelves two years four weeks, and the results, said George Ditomas-si, Milton Bradleys senior vice president for sales, are more than encouraging. But some stores are not optimistic about the games chances. John Hites, the manager of Toys to Century City, said that tbe.

was way overpriced. He predicted that a much bigger seller would be Mattels Dungeons and Dragons, a highly popular board game that la-. roughly the same price. Barbara Isgur, toy industry analyst for Paine Webber, said that Dark Tower was one of the few outstanding new1981 electron Ur added that so far, this has beena rougli year for' electronic toys and Dark Tower wont be enough to ball out the rest of Milton Bradleys not very 6JECttlU AftDIQBfc However, Milton Bradleys standard toy line doing very welt In fa eL, the traditional board games puzzles and drill are doing well for almost all tee Almost 5 percent of any toy companys sales are made to November and December, 10 Dark Tower will have plenty of compete tion this Christmas as the other big toy makers, Mattel and General Mills, bring but their Christ- -mas seller i Dark Tower a fantasy-adventure game to which computer battles are fought with brigands, while ones warriors are traveling feom rain to bazaar collecting gold and tbe magic keys that DOUTHKisiil American Motors has revealed another fruit of an nunr with, the French automaker Renault a new en-glne'line at its Kenosha, Wto, plant- AMC officials said Tuesday the company will build a 'engine at Kenosha for 198veMdes, all but replacing the onea it now General Mbtor Pontiac divbdon. i -m' V.

I V' Demand fells 25 pet for durable goods -j i I Layoff need eliminated 7 MOST ACTIVESTOCkSATEbNESDAY, 8EPT.23, 1981 MIAMI Eastern Air Lines flight attend-' ants wonl face layoffs as part of the airlines 8 percent personnel cutback because 450 senior flight attendants have volunteered for unpaid leaves of ahaence. In addition to the 450 flight attendants, 300 other employees have vriun-teered for unpaid leaves, the oompaqy said. Tbe action Came a day after most enqdpyees of Pan American World Air-wayu have agreed to accept a 10 percent cut hi and a wage freem to help the finan-. totally troubled carrier survive. And today.

American Airlines said It has 'reached tentative agreement on a new con-pact covering more than 5500 flight attend-ants. The airline would not dlsdose terms of the agreement reached 1 A WASHINGTON New orders for manufacturers durable goods foil a sharp 65 percent to August tbe government reported Tuesday. It was first decline since January and a new sign tee afreUdy sluggish national economy Is weakening further. 7,7 Orders fair durable goods carp applianoes and other big Items expected to last three years, or more' are considered a good indicator -of US Industrial production, which makes up about ooe-third of the gross national product' Preliminary government statistics indicate that the national economy -aa measured. by inflation-adjusted GNP Is declining slightly to jthe current July-September quarter after slipping' at an annual rate of 15 percent, to the second And the new durable goods figures from tbe Commerce Department offered little encourage; ment that prpduction will pick up much soon.

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