WASHINGTON
INDUSTRY LEADERS want federal regulators to decide whether banks are responsible for loan-bias violations by independent brokers. Page 3
THE SENATE passed a bill to let bank customers convert assets held in common trusts without paying capital gains taxes. Page 3
REGIONAL BANKING
USED-CAR sales drove a rise in auto financing last year, but banks' share slipped. Page 4
GREAT WESTERN may be about to end its 14-year relationship with television star Dennis Weaver as its pitchman. Page 4
COMMUNITY BANKING
KANSAS CITY's Dickinson Financial, which owns Army National Bank, plans to buy control of Air Academy National Bancorp. Page 8
LITTLE VALLEY, N.Y., is on the opposite side of Earth from Kazakhstan, but Salvatore Marranca is teaching his banking principles there. Page 9
MORTGAGES
THE INDUSTRY could be facing a brutal 1997. A new forecast by the Mortgage Bankers Association says loan originations will drop about 12% next year, to $670 billion, just slightly better than last year's pallid $636 billion. The trade group painted a scenario in which continued economic strength would force the Fed to push up interest rates next month; it's forecasting an increase of 50 basis points and declining home sales. Page 12
UBS SECURITIES has expanded the specialized investment banking group that serves mortgage lenders. Page 13
INVESTMENT PRODUCTS
MUNICIPAL BOND fund specialist John Nuveen & Co. appears the leading suitor for Flagship Resources, its smaller midwestern rival. Page 14
Mutual funds are trying to get a foot in the door at Wells Fargo, hoping its First Interstate deal will spur it to sell more nonproprietary funds. Page 15
COMPLIANCE
Revised Respa rules will require customers to sign a form before bankers can be paid for referrals to affiliates. Page 16
Regulators and compliance officers say detail has been lacking from CRA strategic plans submitted to the agencies. Page 17
TECHNOLOGY
Projecting rapid growth in banking over the Internet, Booz-Allen & Hamilton is estimating that on-line households will generate 30% of the industry's retail profits by 2000. Page 22
A subsidiary of First Chicago NBD said it has bought "data mining" software to support its marketing and profitability analysis. Page 22
FINANCE
Bankers Trust offered about 35 top executives up to $200 million in bonuses if they can boost the company's stock price to $100 a share. Page 26
