REIT to Buy Thrift Company in Phoenix
SANTA FE, N.M. - Thornburg Mortgage Inc. said it has agreed to buy FASLA Holding Co., the holding company of First Arizona Savings, a Phoenix thrift, for about $15 million.The deal is expected to close by mid-2000, subject to regulatory approval.
First Arizona has $138 million in assets and six retail branch offices. The acquisition would give Thornburg, a real estate investment trust, the lending license it needs to become a mortgage originator. SAMCO Capital Markets, a Dallas boutique, advised First Arizona, which would become a taxable subsidiary of the REIT and continue to operate as a retail community bank.
- Marc Hochstein
CIBC Hires Junk Bond Chief from Chase
NEW YORK - CIBC World Markets on Wednesday named C. Scott Fahey, a former managing director at Chase Securities, as head trader in its high-yield group.As head trader at Chase for six years, Mr. Fahey helped bring Chase to its No. 4 ranking in the high-yield business. As a managing director at CIBC, Mr. Fahey reports to Mario Monello, managing director and co-head of high-yield sales and trading. He started Wednesday, succeeding John Budish, who resigned last year.
- Laura Mandaro
Equity Fund, 2 Partners to Buy Publisher
NEW YORK - A consortium of investors including a fund managed by CIBC World Markets has agreed to buy the publishing company of New York alternative newspaper The Village Voice.Trimaran Fund II LLC, a private equity fund run by CIBC, affiliates of New York investment management firm Weiss, Peck & Greer LLC, and David Schneiderman, the president of Stern Publishing, plan to acquire Stern Publishing for an undisclosed sum, the media group said Wednesday.
Mr. Schneiderman will be chief executive officer, overseeing the publication of eight free weekly newspapers and $90 million in annual revenues.
Ex-Credit Union Manager Charged with Fraud
WASHINGTON - A onetime government credit union manager accused of leading a fraud that led to a $4 million failure of his institution pleaded "not guilty" Wednesday in the U.S. District Court for the District of Columbia.The government alleges that Bernard Gurr, who was arrested last month in Hawaii, conspired with other employees of the American Samoan Government Employees Federal Credit Union in an embezzlement scheme involving loan fraud from 1990 to 1993. Three of his former employees pleaded guilty and are cooperating with the prosecution of Mr. Gurr. Mr. Gurr pleaded not guilty at the arraignment. The Pago Pago-based credit union had a net capital deficit of $2.3 million when the government seized it in 1993.
- Katharine Fraser
B of A Veteran to Head Merchant Services Unit
SAN FRANCISCO - Bank of America Corp. on Wednesday named Lorraine Stimmel chief of its merchant services unit.Ms. Stimmel, a 26-year veteran of the bank who has been head of corporate diversity and work/life, succeeds Sharif Bayyari, who left on Wednesday. Ms. Stimmel will report to Jim Hulihan, head of commercial card products and services.
HUD Raises Limit for Insuring FHA Mortgages
WASHINGTON - The Department of Housing and Urban Development announced Wednesday that its FHA program has begun insuring home mortgage loans of up to $219,849 for single-family residences - a 5.3% increase over last year's loan limit.The agency adjusts loan limits annually to compensate for rising home costs. The same percentage increase was applied to multiple-family dwellings.
- Rob Garver
