ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, October 8, 1996 TAG: 9610080066
SECTION: BUSINESS PAGE: B-6 EDITION: METRO
Consumer debt growth slows down
WASHINGTON - Consumer debt grew at the slowest rate in more than three years in August, rising at an annual rate of just 3.5 percent.
The Federal Reserve reported Monday that the August increase followed a July gain of 7.6 percent at an annual rate.
In dollar terms, consumer debt rose by $3.3 billion in August after increasing $7.3 billion in July.
According to analysts, the slowdown occurred when consumers burdened by record-high debt cut down on borrowing. Many banks have been tightening credit standards in the face of rising delinquencies and personal bankruptcies in recent months.
``The runup in consumer debt was reaching unsustainable proportions,'' said Chris Varvares of Macroeconomic Advisers in St. Louis.
The slowdown in borrowing was expected to slow the growth of consumer spending, which accounts for two-thirds of the total economic activity.
Varvares said he believed the gross domestic product, which raced ahead at an annual rate of 4.7 percent in the second quarter, grew by a much slower 2 percent in the third quarter.
The August change was the smallest since the debt level had actually declined by $200 million in May 1993. The $3.3 billion increase in August put the total debt level at $1.17 trillion. It first passed the $1 trillion mark last year.
- Associated Press
First Union's acquisition OK'd
CHARLOTTE, N.C. - Home Financial Corp. said its shareholders approved the acquisition of the company by First Union.
Though the amount of the transaction was not disclosed, First Union said in June, when it first announced its plan to buy Home Financial and a Connecticut-based mortgage business, it would pay $715 million in stock for the two companies.
The plan to acquire the Hollywood, Fla.-based savings & loan will allow First Union to expand banking operations in the growing Florida market.
Home Financial has $1.22 billion in second-quarter assets, and operates eight branches in southeast and central Florida under the name Home Savings Bank FSB. It had $892 million in total deposits.
Charlotte, N.C.-based First Union, the sixth-largest bank company in the U.S., with $139.8 billion in assets, has been expanding its presence in Florida, an attractive market with a growing population.
- Bloomberg Business News
Netscape, Va. firm announce alliance
WASHINGTON - CyberCash Inc. of Reston on Monday announced an alliance with Netscape Communications Corp. that could give much wider currency to CyberCash's system for making retail purchases on the Internet.
The fledgling company's stock jumped almost 21 percent on the news that industry giant Netscape would use CyberCash's payment technology in Netscape Internet software for merchants and consumers. Netscape's Navigator is by far the most common ``browser'' software in use.
It was perhaps the most tangible sign of progress yet for CyberCash, which debuted on the stock market in February with no revenue, millions of dollars of losses, and no expectation of turning a profit before next year.
- The Washington Post
Art store opens in Piccadilly Square
Martinique Fine Art and Mirrors, a retail shop selling framed and unframed fine art prints, as well as framed mirrors and art cards, has opened in Piccadilly Square shopping center in Roanoke. The store, at 3117 Franklin Road, is owned by Elizabeth Martin Thomasson, a freelance designer for Carolina Mirror and Crown Fine Arts of Wilkesboro, N.C.
- STAFF REPORT
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