Unit 7. Banking

1. Read the article from the CNN Money website and complete it with the expressions listed.

operating income              diluted              issuer              improvements

environment              net              income              edged              up              credit costs

deterioration              assets              shares              lift

Bank One Tops 1Q Target

Credit card business helps ...

New York (CNN/Money) — Bank One Corp. posted improved first-quarter results Tuesday that were slightly better than Wall Street expectations, and the bank said it is beginning to see ... (2) in business conditions that could help results in the second half of the year. The No. 6 banking company in terms of... (3) posted earnings of $ 787 million, or 67 cents a... (4) share. That’s 1 cent a share better than the consensus forecast of analysts surveyed by First Call and up from ... (5) of $ 679 million, or 58 cents a diluted share, a year earlier.... (6) from commercial banking fell 27 percent to $ 143 million, but retail banking income, its largest contributor, ... (7) 1 percent to $ 343 million while credit card income climbed 61 percent to $ 239 million. Bank One is the largest... (8) of Visa credit cards. “While the credit... (9) remains challenging, we are beginning to see a slowing of...

10. in parts of our business,” CEO James Dimon said. “Although this is not expected to improve ... (11) in the near term, it could lead to improvement in the latter part of the year.” ... (12) of Bank One lost 77 cents to $41.21 Monday.

2. After filling in the gaps read the article once more and decide which of the statements are True and which are False and write T for true and F for False.

1. Credit card business is profitable for Bank One.
2. Wall Street expected worse first-quarter results.
3. The consensus forecast of analysts was 68 cents a diluted share.
4. Credit card income was higher than operating income from commercial banking.
5. Credit costs can be improved in the near term.

3. Give English equivalents and make up your own sentences:

• застрахованные банковские депозиты;
• тратта, выставленная одним банком на другой;
• неуплаченный, просроченный;
• бланк, заполняемый при взносе суммы на текущий счет;
• постоянное поручение.

4. Translate the following sentences into Russian.

1. The Central Bank chairman, speaking before the Senate Banking Committee, objected to last year’s recommendation by the Federal Deposit Insurance Corp. (FDIC) that the $ 100,000 limit on guarantees for bank deposits be raised.
2. “In [the Fed’s] judgment, neither financial stability, nor depositors, nor depositories are being disadvantaged by the current ceiling,” Greenspan said in his prepared testimony.
3. Earlier this month, the House Financial Services Committee overwhelmingly approved a proposal to raise the limit to $130,000 for most individual accounts.
4. While acknowledging that the deposit insurance system needs reform and agreeing with other FDIC recommendations, Greenspan took Bush’s side, saying raising the ceiling would “reduce the incentive for market discipline, without providing any real evident public benefits.”
5. A rash of bank failures in the United States during the Great Depression led to the institution of federal deposit insurance in 1934.

5. Render the extract from the article using the active vocabulary.

Владимир Рашевский стал новым председателем правления МДМ- Банка, пользующегося за рубежом репутацией надежного российского банковского учреждения.

• Вы рисуете очень суровую картину банковского сектора в России: засилье государственных банков, плохое управление предприятиями... Чего следует ждать в будущем?
• Текущий момент, действительно, не слишком благоприятный, но благодаря реформам ситуация должна улучшиться через два или три года. До 2004 г. все банки должны перейти на международные стандарты системы учета. Мы применяем нормы учета IAS с 1994 г. Другой момент: будет увеличен размер минимального обязательного капитала, необходимого для открытия банка. Это приведет к значительному сокращению числа банков. Еще несколько лет назад их насчитывалось более 5000. Сейчас уже не больше 1700 банков. И я думаю, что через пять лет останется 300 или 500 банков.