Legg Mason's Dunn does legal encoreYou can take Jack B...

BANKING & FINANCE

October 22, 1992|By David Conn

Legg Mason's Dunn does legal encore

You can take Jack B. Dunn IV out of the law, but you can't take the law out of Jack Dunn. The co-manager of Legg Mason Inc.'s Baltimore corporate finance department has returned to his legal roots with a move this month to Annapolis-based Forensic Technologies Corp. Inc.

FTI is a litigation consulting firm, providing everything from engineering and scientific analysis to expert witnesses and jury analysis. Mr. Dunn, who joined Legg Mason a decade ago from Baltimore's Weinberg and Green, helped FTI secure equity financing this spring from Grotech Capital Group, a venture firm in Timonium. Last week, Mr. Dunn, 41, joined Forensic Technologies as executive vice president and chief financial officer.

The move leaves James A. Flick Jr. in sole charge of Legg Mason's Baltimore corporate finance office, which helps companies with mergers and acquisitions, public offerings and private placements.

Legg Mason, through a partnership it sponsors, also owns a piece of FTI, although the company won't say how much.

And you thought the municipal bond industry knew how to party? Put on your seat belts -- it's International Credit Union Month.

The credit unions have one-upped the public finance industry, whose Built By Bonds Week last month was a rousing success. Not only have the credit unions gotten an official proclamation from Gov. William Donald Schaefer that Oct. 15 was International Credit Union Day in Maryland, they've gone on to declare the whole month a celebration of credit unions.

Numbers bear out advice: Be patient

Any adviser can tell you it's wise to be patient and ride out the short-term fluctuations of the stock market. But, until now, few could tell you exactly what those fluctuations do to your investments and how long it takes to rebound from a bad spell.

In the latest issue of T. Rowe Price Associates' newsletter (call [800] 638-5660 for a copy), Vice President Steven Norwitz examines the results of various types of mutual funds in up and down markets. Using Lipper Analytical Services numbers, Mr. Norwitz shows how long it took for different groups of stock funds -- balanced, equity income, growth and small-company growth -- to recover their losses from every major bear market since the Kennedy administration.

One surprising result of Mr. Norwitz's analysis: Over the long term, there's very little difference in the annualized performance of those fund groups: a return of about 10.5 percent on average. The time-tested lesson is not to try to outguess the market, he says, but just to pick a strategy and stick with it.

Md., U.S. regulators plan to team up

Ask bankers, in Maryland or anywhere else, what their biggest problem is and expect to hear the word "regulators." So it's a bit ironic that Maryland's top regulator, Banking Commissioner Margie H. Muller, had some good news for bankers at the American Bar Association convention in Boston last weekend: less regulation. Or at least less redundant regulation.

Last week, Maryland signed an agreement with the Federal Deposit Insurance Corp. to work together more closely in regulating federally insured, state-chartered banks. Primarily, that means alternating annual examinations between the FDIC and the state, and sharing the results. (Ms. Muller notes that cooperation has existed between the two but that now there's a "contract" to formalize it.)

As chairwoman of the Conference of State Bank Supervisors, Ms. Muller reminded ABA members that the conference signed a resolution in April urging all state regulators to coordinate with the FDIC. A similar resolution was signed in September with the Federal Reserve Board, which regulates Fed member banks.

The next step, Ms. Muller promised, is uniformity in regulatory reporting (as the bankers breathe a collective sigh of relief).

Closing of bank was rarity for Md.

Speaking of Ms. Muller, her action last week to shut down Lanham-based Universal Bank was only the second such closing in Maryland in more than 40 years. The bank, with $22.1 million in assets, was put in the hands of the FDIC, which agreed to pay off all of its insured deposits. Twenty-seven account holders had in uninsured deposits, but the FDIC has agreed to pay them 56 cents on the dollar initially and a portion of what remains after liquidation.

There was no one glaring problem, Ms. Muller said, just poor commercial loans, an inability to grow through branching and, finally, a failure to raise needed capital. "I think they had a series of managers over their short life that just weren't able to lead the bank into success or growth," Ms. Muller explained. Former officials of the bank could not be reached for comment.

It was only the second time since World War II, perhaps even longer, that a Maryland bank has been closed. Last year, the Washington Bank of Maryland failed when its parent, Washington Bancorp, went into bankruptcy.

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