BUSINESS Transfer Agents Seek Iron-Clad Guarantees West Keeps
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-L -«w ' U - MANCHESTER HERALD. Tuegdav. March 11, 1986 BUSINESS U.S./W ORLD SPORIS Florida landings M HS hockey Hors d’oeuvres Transfer agents seek iron-clad guarantees worry astronaut loses in semis are her specialty ... pag« 5 ... page 9 ... page 14 Attempts are being made to bring uniformity to this have to be reported until April 15,1987. QUESTION; I "ban k " with a savings and loan mixed-up situation through a proposal called The exceptions to this are people who made association. I needed to have my signature on a stock "Signasure.” If that program ever gets off the withdrawals from the slammed-shut S&Ls In 1985 and certificate guaranteed. Much to my surprise, my S&L ground, S&Ls, savings banks and CUs will be able to whose balances at year-end were less than those 1985 could not do this for me. I had to go to my stock broker. participate and provide signature guarantees accep withdrawals.They are required to pay 1985 income tax With almost everything else in the banking business Investors’ table to all transfer agents. on the difference. being dere^lated. why should this be? * O Guide The big hang-up with Signasure has been obtaining By this time, you should have received a Form 1099 listing taxable, interest — if any. Assuming you made ANSW ER: Partly because of tradition; partly a blanket fidelity bond to insure all participants William A. Doyie no 1985 withdrawals, you have no 1985 tax liability on because transfer agents naturally want to be against loss. interst credited to your Old Court CD. protected against fraud. Transfer agents, mostly Dig banks, cancel stock certificates presented for QUESTION: Sadly, I did not heed your warning Q UESTIO N; I have had an account at one of the transfer and issue new certificates in the new owners' about not putting money in a bank or savings and loan association not covered by federal deposit insurance. closed Maryland S&Ls since 1984 and paid income tax aurliratrr Hprato names. Manchester — A City of Village Charm on the 1984 interest. Since I still can’t get any of my As has been the case for many years, all transfer I obtained a large certificate of deposit at Old Court money, shouldn’t I be able to report lost interest as a agents now accept signature guarantees from S&L, Baltimore, for high interest. Becuase of Old deduction on my 1985 income tax return? brokerage firm members of the New York Stock Court's troubles, I can’t withdraw my money. Interest Exchange, commercial banks and trust companies. encompassing signature and financial guarantee was reduced to 5.5 percent last June and cut off in 25 Cents ANSWER: Nope. Eventually, you will get your Wednesday, March 12,1986 Those brokerages, banks and trust companies all arrangement between transfer agents and other November. Do I have to pay income tax on interest deposit and the interest that built up on it until the have filed signature guarantee cards with transfer depository institutions — S&Ls, savings banks and credited to my CD, before the cutoit'/ Nov. 8 cutoff. You can’t take a tax deduction for "lost agents and also provide financial guarantees. credit unions. interest" since Nov. 8. This is similar to a bond If some Light-Fingered Louie manages to get a However, some transfer agents do accept signature ANSWER: Probably not. The Internal Revenue guarantees from S&Ls, savings banks and CUs with Service has ruled that most depositors who have not defaulting on interest payments. You can’t take c Railroad idea signature guarantee on a stolen stock certificate from which they have working relationships. That falls been able to withdraw money from Old Court and tax-loss there, either. W est keeps a brokerage, commercial bank or trust company and succeeds in getting ownership transferred, the under the "know your client" rule. And some mutual other closed Maryland S&Ls will be able to defer Doyle welcomes written questions, but he can transfer agent won't be stuck. funds which act as their own transfer agents take income tax on 1985 interest credited to their accounts provide answers only through the column. At the^^ present time, there is no such all- signature guarantees from notary publics. until the 1986 tax year — meaning that interest won’t wins cautious DOT support close eye on Business Top economist sees U.S. ‘schizophrenia’ By George Loyng i f ' ^ Spanish vote In Brief By Mede Mix okay,” said Samuelson, winner of the a high-consuming, low-investing and loans at low rates. Herald Reporter United Press International 1970 Nobel prize in economics and an slowly growing economy,” he said. Samuelson said that for farm ers who Hewitt advances at bank adviser to Presidents John F. Kennedy But Samuelson predicted a federal bought land at top dollar on high- Although olficlals atslhe state Department of LUBBOCK. Texas — The nation's and Lyndon Johnson. tax increase will eventually be neces interest loans, no amount of effort Transportation believe commuter rail service be By Sarah Nicholson pressing for withdrawal from the h. HARTFORD — Connecticut National Bank has economy with its current low inflation " I think the best term for the sary to reduce the federal deficit. probably can save them from bank tween Manchester and Hartford would be unprofita United Press Internotlonal alliance and the dismantling of the announced the promotion of Andrea H. Hewitt of rate would be in good shape, except for economy is schizophrenic. The inflation "W e are not going to get out of our ruptcy. He did say that the federal ble, the agency’s public transportation director says it four U.S. bases on Spanish soil- Manchester to an officer in the bank's Financial the oil price and farm crises, says Nobel outlook is good, but consumers have low fiscal crisis without a tax increase. We government has a responsibility to backs the concept. MADRID — Voting was reported allowed by a 1953 mutual security Systems Department. She is a project manager prize-winning economist and former savings rates and real earnings haven't will have to give on the tax front, the support the farm credit system and give John J. Spaulding, who oversees the DO T’S rail heavy today in the referendum treaty. with responsibility for balancing, reconciliation, presidential adviser Paul Samuelson. been going forw ard." he said. military front and in a lot of welfare price supports .to the farm economy. operations, said Tuesday the department "supports called by the government to decide Gonzalez urged voters to shed and reporting functions. Samuelson, a professoral the Massa However. Samuelson said the na programs. It has to happen." he said. The stock market of today has many the intent" of a bill introduced in the Legislature at tbe if Spain is to remain in NATO or the isolationism that has kept She joined the bank in 1984 as a senior financial chusetts Institute of Technology, told a tion's economy is experiencing slight On other topics, Samuelson advised features of the market before the crash request of Vernon attorney Walter Simmers which become the first country to pull out Spain outside the mainstream of systems analyst. Previously she was manager of news conference at Texas Tech Univer growth which could continue for a long homeowners to try to refinance mort of 1929, but Samuelson said he does not would give Simmers the authority to start a railroad. of the alliance. Europe for centuries, arguing that financial systems support at Society for Savings. sity Monday that the U.S, economy is time. gages now because he does not foresee foresee a crash. The measure would permit service between the North The referendum is not legally modernization is tied to belonging Hewitt is a June 1986 candidate for a bachelor's "schizophrenic." " I think this can continue until the end interest rates dropping lower. On the "I'm pretty sure that if this bubble End of Manchester and Hartford. Eventual plans call binding but Prim e Minister Felipe to both the European Community, degree at Post College. " If we could forget about the oil and of the century, and it doesn't ha ve toend other hand, he advised savings and loan bursts, it won't cause a 10-year for service into Vernon and Willimantlc. Gonzalez said he would honor the which it joined Jan. 1, and to farm crises, everything would be in a recession. It's the devil's recipe for institutions not to refinance too many depression." he said. - Spaulding said the only objection the DOT has to the outcome and pull out from the NATO. 'proposal is that extending service to Willimantic 16-nation North Atlantic Treaty "Let us choose once and for all in Wamaco buyout on hold would "overlap” with a freight line that currently Organization if he does not win the our history either to be with vote. Europe or turn our back on it,” he BRIDG EPO R T — Warnaco Inc. says it has operates between Columbia and Willimantic. That "The future of Spain now lies in told a rally. postponed for three weeks a special shareholders' Close look may change service, run by the Providence and Worcester the hands of the voters,” Gonzalez But the prime minister also meeting scheduled for March 21 at which Railroad, involves less than one mile of track, said as he emerged from a polling faced the prospect of seeing shareowners- were to vote on a proposed Spaulding said. station. valuable votes in favor of the management-led buyout that would make the He said before Simmers’ railroad, which would be Warm springlike weather in alliance being siphoned off through company private.