Financial Corp

LOCALLY Tri-County Financial Corp. Shares in the Waldorf banking company gained $2 yesterday to close at $50.25. The company is the parent of Community Bank of Tri-County, which conducts business in Southern Maryland. NATIONALLY Countrywide Financial Corp. Shares of Countrywide plunged $4.33, or 12 percent, to $33.17. The nation's largest U.S. mortgage lender said third-quarter earnings declined to 94 cents a share from $1.93. The company was expected to earn $1.01.

WASHINGTON - A federal grand jury in Los Angeles has begun investigating three of the nation's largest subprime mortgage lenders in the clearest sign yet that prosecutors are investigating whether fraud and other crimes contributed to the mortgage debacle. Grand jury subpoenas have been issued in recent weeks and months to Countrywide Financial Corp., New Century Financial Corp. and IndyMac Federal Bank, seeking a wide range of information, according to sources with direct knowledge of the subpoenas.

Capital One Financial Corp. Shares fell $9.26, or 16 percent, to $50.21. The biggest independent U.S. credit-card issuer said bad debts will be greater than forecast and KBW Inc. analyst Robert Hughes cut his rating.

Capital One Financial Corp. Shares fell $9.26, or 16 percent, to $50.21. The biggest independent U.S. credit-card issuer said bad debts will be greater than forecast and KBW Inc. analyst Robert Hughes cut his rating.

Signet Banking Corp. has changed the name of the credit card company it plans to spin off in a public offering and said it expects to begin the sale next month.Instead of OakStone Financial Corp., the company will be called Capital One Financial Corp., Richmond, Va.-based Signet said yesterday."Capital One consistently outperformed a broad array of names in extensive consumer testing," Signet said in a statement.The offering will begin some time after Signet releases its third-quarter earnings, which are expected Tuesday.

CrestarCrestar.. .. .. .. .. .. .. ..Ticker .. .. .. .. Yesterday'sFinancial Corp .. .. .. .. .. Symbol .. .. .. .. Cls. .. .. Chg... .. .. .. .. .. .. .. .. .. CRFC .. .. .. .. ..42 1/8 .. .. .. 1 1/4Period endedJune 30 .. .. .. .. .. .. .. 2nd qtr. .. .. .. .. Year ago .. Chg.Net Income .. .. .. .. .. .. $33,700 .. .. .. .. $16,800 .. ..+100.6%Primary EPS.. .. .. .. .. .. ..$0.88 .. .. .. .. ..$0.50 .. .. +76.0%Annualized returnon assets .. .. .. . .. .. .. ..1.09 .. .. .. .. .. NAAdd. to allowancefor loan losses .. .. .. .. .. $3,000 .. .. .. .. $34,400 .. .. -91.2%.

Stocks of local and regional banks were hopping yesterday on takeover speculation after the announcement that Chemical Banking Corp. and Chase Manhattan Corp. are merging to create the nation's biggest bank.Crestar Financial Corp.'s stock hit a record $55 a share, up $1.12; Mercantile Bankshares Corp. closed at $25.375, up 25 cents; Signet Banking Corp. closed up 75 cents at $25.75; and Columbia Bancorp's stock reached $15, up 50 cents."Almost everybody across the board has been up," said David M. West, a banking analyst with Richmond, Va.-based Davenport & Co. "It is the kind of merger frenzy you get; it is always a guessing game as who mergers with who."

Several large banking companies announced steps yesterday to cushion themselves against rising loan losses, offering further evidence of the worsening loan situation at banks and of how broadly the problems are spread geographically.NCNB Corp. in Charlotte, N.C., said yesterday that its 1990 profits would shrink because the bank had set aside $55 million to $65 million for bad loans in the fourth quarter.Most of those loans are not paying interest or are uncollectible. Bad loans will reduce net income this year to about $360 million from $447 million last year, the company said.

Lotus takes over IBM desktopInternational Business Machines Corp. said it will market most of its software for desktop computers chiefly under the Lotus name, and its new Lotus Development Corp. unit will oversee most development of desktop software.The two companies also said Lotus' key product, Notes, will become their single product in "groupware," or software that allows computers in a network to share information.The announcement follows the completion two weeks ago of IBM's $3.52 billion acquisition of Lotus.

MNC Financial Corp., the parent of Maryland National Bank, yesterday signed a definitive agreement to sell its Virginia Federal Savings subsidiary for $52 million in cash to Crestar Financial Corp. of Richmond.The sale of the thrift, with $756 million in assets, fulfills a requirement that regulators had set for the acquisition of MNC by NationsBank Corp. of Charlotte, N.C. The Federal Reserve Board had said the merger would have exceeded Justice Department guidelines for market concentration in Charlottesville and Orange County, Va., where Virginia Federal has branches.

Fulton Financial Corp.'s acquisition of Columbia Bancorp, a community bank based in Howard County, has been challenged by a consumer advocacy group that alleges the larger bank discriminates against minorities in mortgage lending and shouldn't be allowed to expand. The New York City-based Inner City Press/Fair Finance Watch, a group that frequently weighs in on bank mergers, asked the Federal Reserve to deny the application from Fulton Financial, based in Lancaster, Pa., to buy Columbia Bank for $313 million in cash and stock.

LOCALLY Tri-County Financial Corp. Shares in the Waldorf banking company gained $2 yesterday to close at $50.25. The company is the parent of Community Bank of Tri-County, which conducts business in Southern Maryland. NATIONALLY Countrywide Financial Corp. Shares of Countrywide plunged $4.33, or 12 percent, to $33.17. The nation's largest U.S. mortgage lender said third-quarter earnings declined to 94 cents a share from $1.93. The company was expected to earn $1.01.

Here are excerpts from "Advice for a Recent Widow," by Alexandra Armstrong, certified financial planner, in Better Investing: "Don't make important irrevocable decisions for six months. ... See your lawyer, accountant and stockbroker promptly. ... Calculate your net worth - what you own and what you owe. ... Seek professional investment advice. ... Organize and pay appropriate bills. ... Start recording income and projected expenses. ... If you have trouble getting organized, ask a knowledgeable family member to help."

WILMINGTON, Del. -- MBNA Corp., the largest publicly traded U.S. credit-card company, said yesterday that its fourth-quarter net income rose 27 percent to a record, beating analysts' expectations, as it added new customers through marketing agreements with colleges, charities and other groups.The company had net income of $238.3 million, or 30 cents a share, up from $188.3 million, or 23 cents, a year ago. Analysts surveyed by First Call Corp. expected MBNA to earn 29 cents.In each quarter since it went public eight years ago, MBNA has shown earnings increases averaging 25 percent over the year-earlier period.

NEW YORK -- U.S. stocks rose yesterday as investors poured money into computer companies for a second day on expectations that demand for their products will revive in the second half.Microsoft Corp. led the gains, after the No. 1 personal computer software maker won a round in court with federal antitrust officials.The Dow Jones industrial average rose 117.33 points to 8,828.46, led by computer maker International Business Machines Corp., up $3.625 to $111.75 on Microsoft's coattails.The Standard & Poor's 500 index gained 16.25 to 1,119.

NEW YORK -- U.S. stocks rose to records yesterday on optimism that a strong economy and falling interest rates will allow corporate profits to increase more than expected.Philip Morris Cos. led the gains, rising $6 to an all-time high of $131.50 on expectations that cigarette makers will negotiate a settlement of multibillion-dollar lawsuits.The Dow Jones industrial average gained 78.50 to a record 7,067.46, surging in the last hour of trading after being little changed for much of the day. The Standard & Poor's 500 index rose 7.81 to a record 816.29, helped by gains in Merck & Co., Coca-Cola Co., General Electric Co. and bank shares like First Union Corp.

Former CEO charged with fraudSteven Hoffenberg, who launched an unsuccessful bid last year to take over the New York Post, was arrested yesterday on fraud and obstruction of justice charges for allegedly falsifying the records of his financial company.Mr. Hoffenberg, former chairman and chief executive of Towers Financial Corp., a New York-based bill collection company, surrendered to federal marshals in Manhattan.The Justice Department probed his records after the Securities and Exchange Commission filed a civil lawsuit against Mr. Hoffenberg and Towers a year ago, accusing them of swindling about 2,800 investors out of roughly $215 million.

Here are excerpts from "Advice for a Recent Widow," by Alexandra Armstrong, certified financial planner, in Better Investing: "Don't make important irrevocable decisions for six months. ... See your lawyer, accountant and stockbroker promptly. ... Calculate your net worth - what you own and what you owe. ... Seek professional investment advice. ... Organize and pay appropriate bills. ... Start recording income and projected expenses. ... If you have trouble getting organized, ask a knowledgeable family member to help."

NEW YORK -- U.S. stocks climbed to records for a third straight day yesterday, powered by better-than-expected earnings from Microsoft Corp. and a rally in financial shares sparked by Banc One Corp.'s $7.3 billion bid for First USA Inc.Microsoft's report was the latest evidence that U.S. companies are hitting on all cylinders and that the fuel behind the stock market's two-year rally -- vibrant profit growth -- remains in good supply.The Dow Jones industrial average rose 10.77 points to an all-time high of 6,843.