i
2The Daily Tar HeelFriday, February 7, 1986
n n o n n n
By MATTHEW FURY
Staff Whter
one
S (QlOrOdDSOliS
The U.S. House of Representatives has passed an
act that would limit the amount of time a bank may
deny a customer access to deposited funds.
The Expediated Funds Availabilty Act is designed
to eventually require banks to make in-state checks
accessible to customers one business day after deposit.
The legislation applies to all financial institutions.
The Bartlett Amendment to the bill allows banks
to deny a customer access to check deposits if there
is "reasonable belief that the account of the depostied
check is not backed by sufficient funds. In this case,
the bank would be required to inform the depositor
within one business day that his funds were being held.
The amendment placated some banks' fears of losses
on bad deposits. David Fox, spokesperson for First
Citizen's Bank, said a mandatory clearing schedule
"could probably create more opportunities for the
would-be con-man." However, the bill would not be
a great problem for the bank if it became law, he
said. . ,:
The amendment is opposed by those who feel it
goes too far to protect the banks." It would give them
too much discretion in determining which accounts
have insufficient funds, said a House Banking
Committee spokesperson.
Minority members, farmers, foreigners, and
individuals in legal proceedings could be likely targets
for discrimination, the spokeperson said. v
"We hope the banks are reasonable and will not
arbitrarily hold checks," she said. "If a citizen feels
his check is being held indiscriminately, he should turn
to a public law firm." ;
N.C. Congressmen Jim Broyhill of Lenoir and Alex
McMillan of Charlotte supported the Barlett
Amendment.
"If you don't strike a good balance (between bank
and consumer interests), you will hurt the competitive
situation. You have to grvelome leeway," said Jay
Timmons, press secretary for McMillan.
The bill, which awaits Senate consideration, would
ho Implemented over a three-year period.
Mo Bimd m sight for imteffsMte
Within 90 days of the bill's enactment, cash deposits,
certified checks and cashier's checks would be available
the next day. At the same time, checks drawn on local
banks would be aviiilable three days after deposit. Next
day availability oil local checks and in-state checks
would be mandated three years after enactment.
The Federal Reserve Board would have the right
to suspend the law for 45 days if an excessive check
fraud, was determined. New bank accounts are also
exempt from clearing schedule guarantees for 30 days.
Individual states may devise their own clearing
schedules, provided that they offer more support for
the consumer.
Some area bank representatives do not oppose the
proposal.
"We do not as a general practice hold customers'
deposits. There wouldn't be any change for us," said
William Nester, Village Bank head of operations.
Spokespersons for Carolina Central Bank, Northw
estern Bank, and Wachovia said they did not foresee
any changes in customer service.
Marcos puts military on alert
From Associated Press reports
MANILA, Philippines - President
Ferdinand E. Marcos put the armed
forces on "red alert" Thursday, the
eve of the special presidential elec
tion. In a U.S. television interview,
he accused opponent Corazon
Aquino of saying his re-election
could spark civil war.
Speaking on ABC News "Nigh
tline," Aquino, 53, reiterated; fears
the Friday election may be rigged
in favor of Marcos, who has held
power for 20 years.
Marcos, 68, called the election
more than an year early to prove to
critics he still can muster popular
support.
An announcer on Philippine
government radio, making public the
decision to bring the military to its
highest level of preparedness, said
the armed forces were on red alert
news in brief
and all military personnel would be
on call for the next 24 hours.
Hijacker's motives unclear
RAPEVINE, Texas - A man who
commandeered a Delta Air Lines jet,
holding a penknife on a steward
before he was overpowered by FBI
agents, had been nervously pacing
the aisles, according to passengers
who said they didn't know anything
was wrong until police arrived.
Ralph A. Hughes II, 34, of Fort
Lauderdale, Fla., made no clear
demands after he grabbed the ste-r
ward Wednesday night as Flight 139,
arriving from Fort Lauderdale
bound for Los Angeles, taxied to the
Delta terminal, said FBI Agent Bob
Gillham.
Post tfffoces ireceSve lbotl
Editors' Note: This is the fourth of
a four-part series on interstate bank
mergers in North Carolina.
By GORDON RANKIN
Staff Writer
The number of mergers within the
American and international business
communities has grown sharply, and
the trend will continue during the next
decade, according to the January issue
of Fortune magazine.
The Wachovia Corporation and First
Atlanta Corporation, two major Sou
theastern banking firms, annnounced
on September 17 of last year that they
would combine to form the First
Wachovia. Corporation. The Federal
Reserve System and the Georgia Depart
ment of Banking and Finance approved
the merger in early November.
According to agreements reached by
the two original companies, Wachovia
stockholders will be given one share of
First Wachovia for each Wachovia
share, and each share of the First
Atlanta stockholders will be converted
into .80 share of First Wachovia
10
. M
X llA.
5230 MmxD
Mom f 'Mio
m0
Corporation.
Upon completion of the merger, the
new institution will possess assets of
$16.7 billion, and its deposits will be
valued at $12.3 billion. That, plus the
combination of 327 branch offices in
two states, will make First Wachovia
an able competitor in the Southeastern
financial market.
The newly-formed corporation
announced on December 12 that it
would be setting up a new division, First
Wachovia Corporate Services Inc., to
overlook important institutional and
corporate negotiations for its two
principal banks in this country and
abroad.
John G. Medlin Jr., president and
chief executive officer of the new firm,
said: "This plan creates a functional
administrative structure which can
coordinate and integrate corporate
banking activities of the two banks. It
will enable the provision of corporate
banking services under the First Wacho
via name in all markets outside those
served by the metropolitan and state
wide units in Georgia and North
Carolina."
CLASS PORTRAITS
()(o)
Feb. 10-14, 17-21 Seniors Only
Mar. 3-6 Freshmen, Sophomores & Juniors
... i
FREE NO SITTING FEE
Call 962-3912 or 962-1259 or come by
Carolina Union Room 106 9-4 PM for appointment
T
) SUM J.tfOl !.'..
tz r b IC & b ft tz (f V tots . ' h zfcli UfrTitzbs 2 it
IT'i'J ?JU- Mi. ttz fl mWA RECRUIT U.S.A., INC.
re-;
ft:
t(Dj. C'AdT?) J: -7PA li f e
C3
?V (:
i 4
February 10
x
International Center
Time: 1 :00 pm and 3:00 pm
lf unable to attend, please call our toll free number.
RECRUIT U.S.A., INC.
700 S. Flower St., Suite 3210
Los Angeles, CA 90017
1-800-325-9759
Sl-800-423-3387 (In California)
JJRECRUIT U.S.A., INC.
According to statistics released in the
January issue of Financial Advisor,
mergers like that of First Atlanta and
Wachovia will steadily increase despite
the increased number of mergers within
the past five years.
Banks and other financial institutions
rank second in the number of corporate
acquisitions. Oil companies hold the top
position, and the power industry ranks
third.
H. Jack Runnion Jr., executive vice
president and chief financial officer of
First Wachovia, said although his
company would need time before it
proceeded with further acquisitions, he
did forsee, in general, more of a trend
toward the consolidation of large
companies.
"There will be many beneficial results
of this trend," he said. "The companies
themselves will be enabled to utilize a
greater number of corporate resources,
but more importantly, consumers will
find themselves benefitting from larger
yet more inexpensive institutions."
Medlin will also continue to serve as
the head of both the Wachovia Cor
poration and its Wachovia Bank and
Trust division. Thomas R. Williams was
chosen chairman of First Wachovia and
will remain president of First Atlanta
and its subsidiary First National Bank
of Atlanta.
for the record
In Thursday's Daily Tar Heel article,
"New water line to come to campus,"
the first day of fall classes was incor
rectly reported. Classes will begin Aug.
2 1 The Daily-Tur-Heel regrets-the-error.
By BETH OWNLEY
Staff Writer
In response to complaints from
Chapel Hill residents about local mail
delivery, U.S. Rep. Bill Cobey has
requested that more resources be
invested in area postal facilities.
In a prepared statement released last
month, Cobey said two postal super
visors have been sent from Raleigh to
help manage the Chapel Hill post office.
Twenty new employees have recently
been hired in the Estes Drive and
Franklin Street postal stations.
According to Chapel Hill postmaster
Tom Grobleski, the number of postal
service personnel is inadequate to meet
the workload. Grobleski, who became
postmaster in October, said temporary
employees have been hired, and per
manent employees will begin work in
February.
There are 121 full-time postal
employees in Chapel Hill and the postal
service is continuing to hire temporary
employees, he said.
The major complaints about mail
delivery involve late and misdelivered
mail, Grobleski said. "Those problems
have been lessened but not alleviated
unfortunately," he said.
Cobey's press secretary, Steve Long,
said most complaints concerned
delayed mail, long post office lines and
package delivery.
"The Triangle area is growing at such
a pace that we're having a difficult time
keeping up with the growth," Grobleski
said. He added that there has been a
10.7 percent increase in Chapel Hill mail .
in 1986.
Mail volume in the Triangle has
increased more than 18 percent in the
last year the largest increase in the
South.
Grobleski said renovations soon will
begin on the Estes Drive post office.
Renovations include resurfacing the
parking lot and expanding the post
office box and lobby areas. To improve
lobby service, two new postage meters
have been ordered and a third full-time
window clerk has been added.
The postal service is considering
building a new, larger Franklin Street
post office, Long said. He added thai
there is a new postal facility in the
Student Store on the UNC campus to
serve students and relieve congestion at
the Franklin Street office.
Activist to speak at hook shop
Virginia Durr, longtime civil rights
activist, will speak at the Bull's Head
Book Shop at 3 p.m. Monday in honor
of the publication of her oral autobi
ography Outside the Magic Circle.
Durr will discuss her upbringing and
her battles for social justice. The
interviews in her collection were con
ducted by Sue Thrasher and Jacquelyn
Hall of UNC's Southern Oral History
Program.
SBP candidates Brady, Hassel to debate
The Carolina Union Forums Com- Sunday in the Student Union. The
mittee will sponsor a debate between location will be posted at the Union
student hodv nresident candidates desk.
Davui Brady and Bryan Hassel at i p.m.
a MUiMW flit, Hf s llA MW.Mirvfl
1 fl sts4MT
k y -- s - a
t , ' t i
i it ; i ; n i. j'
H - .
S t t ?
1MMS) 1 n nil iMBii