Today's News

WASHINGTON

BANKS ENDORSED the Fed's first crack at some Glass-Steagall reform - a plan to let holding company employees work for mutual fund units - but said bank employees should also be allowed to do so. Page 2

THOMAS E. ZEMKE works for the OCC. Walter B. "Bernie" Mason is employed by the OTS. Both spend most of their time at the FDIC. And both have learned the ABCs of being a regulatory liaison. Page 4

COMMUNITY BANKING

DURING A ROBBERY, the chief executive of a small Minnesota bank traded places with an elderly hostage, then escaped after scuffling with the robber. Page 5

A BELEAGUERED Los Angeles bank has less than a month to increase its capital and improve lending procedures or face a possible federal takeover. Page 5

REGIONAL BANKING

ANALYST NANCY BUSH said she believes First Union will announce higher targets for its capital ratios, return on equity, and growth of per-share earnings. She said it also may reveal goals for its branch reconfiguration project, designed to encourage customers to use electronic banking services. Page 6

CENTURA BANKS has become one of the first North Carolina banks to offer title insurance to homeowners. Page 6

MORTGAGES

ORANGE COUNTY'S once white-hot housing market, a barometer for the hefty California market, has resurged following its alarming collapse of the early 1990s. Page 8

A MAJOR technological change will involve the transformation of loan originations into a commodity, consultants Grande Bucca and Walter Jewett write. Page 9

INVESTMENT PRODUCTS

AMERICAN SKANDIA has replaced its national sales manager with a marketing executive. Page 10

FIRST CHICAGO, after having trouble marketing its wrap accounts through its trust officers, started selling through brokers - and sales soared. Page 10

CREDIT/DEBIT/ATMs

CREDIT UNIONS are adding credit card accounts, and three processors handle nearly 80% of these transactions. Page 12

TECHNOLOGY

THE NEW YORK Fed, in an effort to reduce payment system risk, no longer will process paper checks that exceed $100 million. Page 15

LETTERS Page 18

FINANCE

SALOMON BROTHERS downgraded First Tennessee National to "hold" from "buy." Back page

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