Today's News

WASHINGTON

Loan officers at 75% of large banks surveyed by the Fed said consumer delinquency rates rose in the past six months. Page 2

Real estate markets are at their strongest in more than two years, according to a nationwide survey of examiners and liquidators at the four bank and thrift agencies. Page 3

REGIONAL BANKING

Bankers have been slow to redesign business processes because they are less willing to address organizational problems systematically, says Michael Hammer, father of the reengineering concept. Page 4

COMMUNITY BANKING

Regulators have approved a New Jersey mutual thrift's plan to set up a tax-free charitable foundation with 8% of the common shares issued as part of its conversion to stock form. Page 8

David Carson, chairman of People's Bank, puts his best foot forward outside the executive suite as a periodic performer with Connecticut Ballet Theatre. Page 8

FINANCE

CoreStates Financial's stock has swooned in the week since a private session with analysts in which the Philadelphia bank admitted its Meridian merger has not delivered the expected benefits. Chief executive Terrence Larsen said higher than anticipated merger expenses and lower than anticipated revenues made estimates at the October merger announcement unattainable. Back page

Chase Manhattan and Barclays de Zoette Wedde are arranging a loan of about $2.3 billion for Southern Electric PLC's bid for Southern Water PLC. Back page

COMPLIANCE

Sophisticated credit scoring techniques can help banks prepare for new risk-based exams, a recent consumer lending conference was told. Page 10

The Fed proposes to exempt from insider lending rules the directors of bank affiliates who do not hold policymaking jobs at the parent company. Page 10

MORTGAGES

Robert Richards, chairman of Source One Mortgage Services, said he is retiring early. Terry Baxter, president of parent Fund American Enterprises, replaces him. Page 12

Sales of existing homes in California soared 39.6% above the year- earlier level in April, the largest year-to-year percentage increase in nine years. Page 13

INVESTMENT PRODUCTS

Stillwater National Bank in Oklahoma chose a small investment marketing firm rather than a large one to help it plan a full-service investment sales program. Page 14

Although most opponents of bank mergers are community activists, even wealthy trust beneficiaries have gripes when their banks get bigger. Page 14

TECHNOLOGY

J.P. Morgan promises to be an active manager of its allied vendors in their recent $2 billion outsourcing pact, industry observers say. Page 18

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