Today's News

WASHINGTON

A wave of appeals and decisions are expected in the banking industry's challenge to occupation-based credit unions. Page 2

The GAO says regulators are not gathering enough information about bank counterparties in derivatives contracts. Page 2

John D. Hawke Jr., Treasury under secretary for domestic finance, predicts that the Federal Financial Management Act of 1994 will dramatically change our society. The law, which mandates that all federal payments be made by electronic funds transfer as of Jan. 1, 1999, will soon result in millions of Americans being brought into the banking system for the first time, he says. Page 4

REGIONAL BANKING

St. Louis is campaigning to keep Boatmen's TV pitchman on the air when NationsBank takes over in January. Page 6

Huntington Bancshares, aiming to increase its presence in central Florida, will pay $134 million in cash and stock to buy Citi-Bancshares. Page 6

MORTGAGES

Alltel Information Systems' mortgage unit is teaming with Microsoft and Data Track Systems to provide a secure network for electronic data interchange that will shorten the homebuying process. Page 8

North American Mortgage is now the subject of takeover rumors, just weeks after the company announced two major diversification efforts. Page 9

INVESTMENT PRODUCTS

Fidelity Brokerage Group is thriving in the shadows of the nation's largest mutual fund company. Page 10

J.P. Morgan rolled out a new advertising campaign to promote its full range of services for wealthy individuals, from private asset management to equity underwriting. Page 11

COMMUNITY BANKING

To survive future competitive pressures, community banks must strike a balance between high technology and personal service, said bankers at an Arizona seminar. Page 12

A Charlottesville, Va., bank became only one of four financial institutions this year to use the so-called "modified Dutch auction" program of buying back its stock, but it probably won't be the last. Page 12

CREDIT/DEBIT/ATMs

INSURANCE: Java, the computer programming breakthrough from Sun Microsystems, is spreading to smart cards. Page 14

Two leading computer chip manufacturers, Motorola and SGS Thomson, are building more security into smart cards that don't require contact with a reading device. Page 14

TECHNOLOGY

For the second time in as many months, the Fed reduced what it charges commercial banks for electronic funds transfers. Page 17

FINANCE

Chase Manhattan's investment banking arm, making a big push for business in the world's emerging markets, is securitizing unsold airline tickets. Page 22

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