The stock market stabilized Tuesday, with the Dow Jones average of 30 industrials falling 0.81 point at 3,178.19.
Rule restricts S&L sales of securities
Responding to complaints raised during the S&L scandal, federal regulators on Tuesday prohibited savings institutions from using their offices to sell their own securities or securities issued by affiliates.
The new rule was issued by the Office of Thrift Supervision effective Nov. 6. It is aimed at preventing confusion among S&L customers who might think they were purchasing federally insured certificates of deposit.
Customers of Charles Keating's Lincoln Savings and Loan Association in Irvine, Calif., complained of being tricked into purchasing subordinated debt in the S&L's Phoenix-based holding company. The debt became nearly worthless when the S&L failed and the holding company declared bankruptcy.
Thrifts will continue to be allowed to sell their stock and debt through the offices of unaffiliated brokerage firms.
GAS PRICES FALL. The average price of self-serve regular unleaded gasoline fell by 0.7 cent this week to $1.15 per gallon, according to the American Automobile Association.
INSURANCE PLAN UNVEILED. Blue Cross and Blue Shield of Florida announced Tuesday a new long-term care insurance plan for Florida residents. The plan includes benefits for all types of nursing home care, adult day care and home health care. The plan is available initially only in West and South Florida, including the Tampa Bay area. Long-term care insurance picks up where Medicare and Medicare supplements end. Medicare and Medicare supplement plans don't cover long-term care, but are designed to pay for hospital and doctor services.
REFLECTONE GETS CONTRACT. Reflectone Inc. of Tampa has received a $4-million contract from an Indonesian aerospace firm to help develop an engineering simulator for a new 50-seat commuter plane. Reflectone will provide flight and systems software for the simulator, being built by Pt. Industri Pesawat Terbang Nusantara. The simulator will help predict flight performance of the aircraft.
EPA CITES BUSINESSES. The U.S. Environmental Protection Agency said Tuesday it has issued complaints against four Tampa Bay area businesses for violations of the federal Clean Water Act. The companies and the administrative penalties being assessed are: Tastemaker, Safety Harbor, $120,622; Country Meadows Estates Ltd., owner of Country Meadows/Golden Lakes Mobile Home Community, Plant City, $69,902; Tropicana Products Inc., Bradenton, $115,062; and Mad Hatter Utility Inc., Land O'Lakes, $23,054. The companies are accused of discharging wastes without a permit or in violation of a permit. Tastemaker and Tropicana process citrus; Country Meadows and Mad Hatter operate sewage treatment plants. Companies may pay the penalty, negotiate a settlement or request a hearing.
ECKERD STARTS DELIVERY. You can now get most items sold at Eckerd Drug Stores delivered to your home or office. Same-day delivery service costs $2 an order. Customers can telephone their orders from a catalog available at Eckerd stores or by calling (800) 544-4554. Orders for alcoholic beverages will not be accepted but cigarettes can be delivered.
THRIFT ALLEGATIONS SETTLED. Two ex-officials of Miami's American Savings of Florida, its law firm and one of the firm's partners have agreed to $11.2-million in restitution for a scheme that cost the thrift $23-million, the Office of Thrift Supervision says. Former chairman Harris Friedman; Richard Grassgreen, former president of Enstar Corp., the 50 percent owner of American; the Pittsburgh law firm of Kirkpatrick & Lockhart; and firm partner Alan Berkeley agreed to the settlement Monday to avoid any further legal action, the OTS said.
DOW DOLLAR YIELD
30 industrials vs. Japanese yen 30-year U.S. bond
3178.19 119.70 7.41
-0.81 -0.05 +0.07