Today's News

WASHINGTON

Rep. Bill McCollum of the House Banking Committee is drafting an amendment to Glass-Steagall repeal that would give banks full insurance powers, in a holding company subsidiary. Page 2

The Fed issued guidelines to examiners explaining a four-step approach for conducting the new risk-based exams. Page 2

REGIONAL BANKING

Worldwide foreign exchange trading has surged 45% in the past four years, to a daily average of $1.2 trillion. Page 7

SMALL BUSINESS

Interest rates on new bank loans to fast-growing small businesses fell sharply in the first quarter. Page 10

Lenders must combine idealism with tough-mindedness to succeed in the community development side of the market, says an officer of Chicago's South Shore Bank. Page 11

CREDIT/DEBIT/ATMs

First USA announced new lines of cobranded and affinity cards and a national sponsorship of USA Tennis. Page 12

NYCE has revived a program of safety tips for New York consumers using automated teller machines; crime at ATM sites reportedly dropped 35% after the first round. Page 12

TECHNOLOGY

Bank technology stocks followed the market downward after a strong May jobs report raised fears that the Fed may raise interest rates. Page 14

Bay Networks said it will develop an enterprisewide set of security products for local and wide area networks. Page 16

INVESTMENT PRODUCTS

The private-client unit at Fleet Financial has named regional managers for its investments business to accommodate merger-driven growth. Page 18

Comerica plans a growth mutual fund that invests primarily in the stock of companies that provide Internet services or products. Page 19

MORTGAGES

The migration of homebuyers into adjustable-rate loans should continue well into the summer as rates on 30-year, fixed-rate credits are expected to rise again. Page 21

COMMUNITY BANKING

Bidding for revenue to offset the ups and downs of traditional agriculture, families like the Joneses of central Illinois are embracing "entertainment farming." Page 22

The firing of Trans Financial's chief executive apparently grew out of dissatisfaction with his business strategies and poor performance of the Kentucky bank's stock. Page 22

MARKET MONITOR

Bank stocks took a beating as stronger than expected job growth raised the specter of a Fed rate hike and bond yields topped 7%. Back page

Usually predictable insurance company stocks have turned volatile as interest rates have come down, then gone back up in the past year. Page 33

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