SPECIAL REPORT
The spotlight in American Banker's fourth annual edition of Masters of Mutual Funds is on nine banks that have found ways to stay a step ahead of the pack. Also featured are other banks' bright ideas. Pullout section
WASHINGTON
A Fed study found that depository institutions lost $615 million on 529,000 fraudulent checks in 1995. Page 2
The proliferation of computerized market risk models may be creating a false sense of security at banks and could lead to more disasters like those that struck Barings, Bankers Trust New York, and Orange County. Page 4
COMMUNITY BANKING
The New York Banking Department is urging bankers to take a break - literally. The state recommends that every bank have a vacation policy to prevent traders from fudging the books. Page 7
Basswood Partners, a quiet New Jersey investment partnership, is calling on SC Bancorp of California to put itself up for sale to compensate shareholders for poor returns. Page 7
INVESTMENT PRODUCTS
"Socially responsible" mutual funds have long been associated with championing the environment and other historically liberal causes. But one former broker is offering a new twist on the idea. Page 8
Barclays of Great Britain is merging its U.S. and foreign asset management operations and will headquarter the new unit in San Francisco. Page 8
ANALYST ROUNDTABLE
Interest rate fears could hurt bank stocks in the near term, but Catherine Murray, bank analyst at J.P. Morgan Securities and the newest member of the American Banker analyst roundtable, predicts the sector will soon enter "a prolonged period of outperformance." The reasons: high capital levels and continued consolidation. Page 12
MORTGAGES
The growth of Freddie Mac's mortgage portfolio slowed dramatically in the third quarter, with fewer loans to buy and more expensive debt with which to buy them. Page 14
CREDIT/DEBIT/ATMs
Credit card companies used to view students as ripe for the picking. But card solicitations are dropping, as chargeoffs and delinquencies rise. Page 16
American Express will join the smart card parade with a test of electronic ticketing for American Airlines passengers. Page 17
TECHNOLOGY
ON-LINE BANKING: Intuit took the wraps off the latest version of its Quicken software, preparing for retail store sales beginning Oct. 24. Page 18
FINANCE
An obscure change in the new federal law to bail out the Savings Association Insurance Fund will do much more to drive banks and thrifts together, analysts say. Page 22
MBNA shares shrugged off a downdraft in the stock market, helped by an Alex. Brown analyst's upgrade from "buy" to "strong buy." Back page
