In Brief (three items)

Schwab to Buy Technology Firm for $488M

SAN FRANCISCO - The Charles Schwab Corp. has agreed to acquire CyBerCorp. Inc., a closely held technology and brokerage firm based in Austin, Tex., in a deal valued at about $488 million.The purchase would enhance Schwab's services for very active investors. Founded in 1995, CyBerCorp. offers active traders the ability to scan multiple electronic communications networks,market makers, and market specialists for the best prices and then place orders. The company also provides its customers with institutional-style streaming quotes and news.

Concurrent with the acquisition announcement, Schwab said it would reduce commissions for its most active customers. The leading discount broker will now charge $19.95 per trade once customers have made more than 30 trades in a quarter and $14.95 per trade once they have exceeded 60. Schwab's normal commission is $29.95.

Schwab agreed to exchange about 13.7 million unregistered shares of its common stock for all outstanding shares, options, and equity rights of CyBerCorp. Directors at both companies have approved the acquisition, and holders of more than 90% of CyBerCorp.'s common stock have agreed to vote for it.

- Ross Snel


Low-Income Deposit Tax Credit Proposed

WASHINGTON - Senators from both parties unveiled legislation Wednesday that would provide a federal tax credit to financial institutions that match deposits made by low-income people.Financial institutions would receive a 90% credit for every dollar contributed to an Individual Development Account, up to $500 in each account and up to $100 million overall. Other contributors would receive a 50% investment credit for every dollar they pitch in, up to $500 per account and $10 million overall.

Under the Savings for Working Families Act of 2000, sponsored by Sens. Joe Lieberman, D-Conn., and Rick Santorum, R-Pa., the accounts could be used to buy a house, pay tuition, or start a small business.

"President Clinton underscored the promise of this approach in his State of the Union address last week, when he put forward his Retirement Savings Account proposal, which are very similar to our IDAs, except bigger," Sen. Lieberman said.

- Barbara A. Rehm


House Banking, FASB Schedule Hearings

WASHINGTON - Lawmakers and regulators have scheduled hearings this month on a wide range of topics from failed banks to merger accounting practices.House Banking Committee Chairman Jim Leach on Wednesday announced the witness list for his Feb. 8 hearing on recent bank failures. Testifying are: Donna A. Tanoue, chairman of the Federal Deposit Insurance Corp.; John D. Hawke Jr., comptroller of the currency; Ellen Seidman, director of the Office of Thrift Supervision; and Laurence H. Meyer, Federal Reserve Board governor.

The hearing will focus on the increase in the number and cost of bank failures in the past two years, including BestBank of Boulder, Colo., and First National Bank of Keystone (W.Va.). Federal regulators are being asked to discuss initiatives in three areas that are considered causes of these failures: subprime lending, asset securitization, and fraud.

Meanwhile, the Financial Standards Accounting Board is hosting a series of public hearings this month on its September proposal to eliminate the pooling-of-interests method, a popular method of accounting for mergers and acquisitions. Hearings on the Norwalk, Conn., group's plan will be held today and Friday in San Francisco and on Feb. 10 and 11 in New York. A final rule on the proposal is expected to be issued by yearend.

- Scott Barancik and Dean Anason

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