Show I Stocks Still Lower Than Peak stocks have been upward since when the Nixon announced Phase of the new economic game these issues re still well below the peak early last be decline from that high as brought about by gen-rally lower second-quarter Third-quarter have been but ave been better on the than those of the receding have been caught profits since sources of funds have ot been offset by interest arned on Besides the market there ave been other factors caus-g bank stock prices to including prospective write-offs of loan losses sluggish loan demand mt to the slow economic I Although 1971 fourth- results may be the new program should Bring better operating earn-over the next wage-price freeze of W I did not include in-Pt rates Thus Phase Was made no mention of these rates a ceiling has been much which HP one reason the banking was so reluctant to interest rates in Octo- is that the new will turn out to be J new In an at- to prevent First City and Irving have chosen to tie Jf ff prime rate to that of at should elim-some of the political of movements in break from the old which began in the has been under by many bankers for some The floating still in experimental stage at both First National City and Irving will probably become industry-wide in the near A FLOATING prime rate will allow banks to adjust more quickly to money costs and demand This should permit a fair return on investments and do away with some of the wide operating earnings fluctuations of the past few The new economic program bring a substantial economic expansion in Strong loan demand could come from several including the stimulus of the investment tax credit as industry borrows for increased capital FROM the consumer elimination of the auto excise tax and acceleration of the increase in the personal exemption and standard deduction should spur retail a strengthening omy likely to stimulate loan demand still bank earnings should make some solid gains next the Research Department of Babson's Reports is currently recommending the following bank AMERICAN an Indianapolis bank-holding has had a good growth record in recent Diversification into related fields under sound management enhances future Net operating earnings for the first nine months were below those of a year and full results will probably lag behind those for 1972 vj see considerably better CITIZENS and Southern National Bank is a leading regional bank centered in the rapidly growing southeastern sector of the The company is well managed and as is indicated by its excellent record in recent Earnings will show a slight improvement this year over with an even better gain next Western is a leading West Coast multi-bank holding Earnings during the first nine months of 1971 were below those for the year-earlier period deducting an extraordinary item in 1970 the losses in by the United California a subsidiary in But Western Ban-corporation should experience more prosperous operations from an expected economic rebound in |