WASHINGTON:
LOWER POSTAL RATES for bulk mail are in the works, but bankers fear an accompanying rule change might make it harder for them to qualify for those rates.
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A NEW STUDY shows that commercial and investment banks have contributed far more to the campaigns of five Republican challengers than to that of President Clinton. Page 2
MORTGAGES:
SEN. PHIL GRAMM was the voice of reassurance at this year's Builders Show, where the buzz was about the concept of a flat tax system and the possible demise of the mortgage interest deduction.
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NORWEST MORTGAGE, still reveling in its deal to buy most of Prudential's home loan unit, reported a 48% jump in earnings during 1995 - to a record $104.9 million. Page 14
REGIONAL BANKING:
SUMITOMO BANK has agreed to merge Daiwa's Chicago branch with its own once it completes a $3.3 billion purchase of the ousted bank's U.S. commercial loan portfolio. Page 7
MARINE MIDLAND's parent company posted a 31% increase in fourth- quarter earnings. The profits includes some $2 billion in assets from a leasing company the bank merged with its own operations this year.
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INVESTMENT PRODUCTS:
THE CHEMICAL-CHASE merger is giving rise to a new bank brokerage powerhouse. The new Chase outfit will be the second-largest run by a bank. Page 8
BANK OF NEW YORK, which has long provided cash management accounts for large corporations, will offer that service to small businesses. Page 9
COMMUNITY BANKING:
A TINY START-UP is offering Iowa's community banks a small-town alternative to the large out-of-state regionals as a provider of correspondent services. Page 10
KEITH FLOEN has resigned as the head of Credit Union National Association's troubled card unit. His departure comes as the trade group is considering spinning off parts of the unit. Page 10
TECHNOLOGY:
CYBERCASH and Verisign have teamed up to create a digital identification product to help secure on-line commerce. Page 12
INTUIT has signed on 15 additional financial services companies to offer on-line banking and bill payment services via its Quicken software. Page 13
CREDIT/DEBIT/ATMs:
WITH RUMORS FLYING that American Express has been targeted for a takeover, its travel services unit posted upbeat fourth-quarter earnings. Page 16
AFTER 10 YEARS tracking credit card firms' direct mail solicitations, market researcher Behavioral Analysis has expanded its domain to include card offers on the Internet. Page 16
FINANCE:
BANKERS TRUST, BankAmerica, Citicorp, and Bank of Montreal are leading a $575 million loan - one of the larger leveraged deals in the European syndication market - to Exide International. Back page
POPULAR OPINION holds that banks are becoming anachronisms, but in reality they are becoming more important in the overall economy and are far from extinction, writes James M. McCormick. Page 22
