Reported by Star-Bulletin staff & wire
Tuesday, August 18, 1998
Interest rates steady after Fed meeting
WASHINGTON -- With economic crises still roiling Asia, and now Russia, Federal Reserve policymakers today opted to hold short-term interest rates unchanged.The Fed's monetary policy panel -- the Federal Open Market Committee -- concluded a three-hour, 45-minute private meeting today by signaling it had made no change in the benchmark rate on overnight loans between banks. It's been frozen at 5.5 percent since March 1997, when policymakers raised it a quarter-percentage point.
"I believe the Fed will eventually have to cut U.S. interest rates, but they're not ready to do that yet," said economist Bruce Steinberg of Merrill Lynch.
Dell beats estimates; to split stock again
ROUND ROCK, Texas -- Dell Computer Corp.'s fiscal second-quarter earnings rose 62 percent as the No. 1 direct seller of personal computers dodged declining prices to keep sales growing faster than its rivals.Dell, which also declared a 2-for-1 stock split, said it earned $346 million, or 50 cents a diluted share, up from $214 million, or 29 cents, a year ago. The company was expected to earn 46 cents a share in the quarter ended Aug. 2, according to First Call Corp. Sales rose 54 percent to $4.33 billion from $2.81 billion, Bloomberg News reported. The company said it will split its stock 2 for 1 on Sept. 4 for shareholders of record Aug. 28. It's Dell's sixth stock split in six years.
BankAmerica merger gets federal approval
WASHINGTON -- Federal Reserve action has cleared the way for creation of the largest bank in the United States by combining NationsBank Corp. and BankAmerica Corp.In a private meeting, the Federal Reserve Board voted 6-0 to approve the merger of San Francisco-based BankAmerica and Charlotte, N.C.-based NationsBank. The new bank, based in Charlotte and headed by NationsBank Corp. Chairman Hugh McColl, will move ahead of Chase Manhattan Corp. as the nation's largest commercial bank. It will operate 4,800 branch offices in 27 states and 38 overseas countries.
See expanded coverage in today's Honolulu Star-Bulletin.
See our [Search] [Info] section for subscription information.