Today's News

WASHINGTON

A Federal Reserve decision allowing Electronic Payment Services to buy an ATM network in the Ohio Valley has been overturned on appeal. The court said the Fed had not adequately consider the competitive effects of the deal. Page 2

A former director of the National Credit Union Administration who was ousted earlier this month by President Clinton is suing to block his termination, claiming the White House lacked authority to remove him. Page 2

TECHNOLOGY

The National Automated Clearing House Association is abandoning its once narrow agenda and embracing the Internet, and revealing plans to develop a wholesale payment system with Intuit Inc. and key banks. Page 5

The Royal Bank of Canada is testing a new service that would give its correspondent banks access to account information via the Internet. Page 7

MORTGAGES

Terrance Hodel says the recuperating California housing market helped boost North American Mortgage's loan production by 118%, a dramatic reversal from last year's downturn. But the robust performance couldn't shield the company's stock prices from a beating at the hands of investors worried about rates increases. Page 13

INVESTMENT PRODUCTS

Western National is posting brisk sales of fixed annuities this year, thanks largely to ties with a growing number of banks. Page 8

The first quarter was hard on utility funds in general, and bank-managed utility funds suffered disproportionately. Page 9

REGIONAL BANKING

First-quarter earnings were up dramatically at midsize banks across the Northeast and Middle Atlantic states, spurred by acquisitions and cost controls. Earnings at Pennsylvania's Sovereign Bancorp jumped 29%. Page 10

Ohio's KeyCorp is hoping to buy a Cleveland investment banking firm. No agreement has been signed, but KeyCorp officials are already calling the deal a "natural fit." Page 10

COMMUNITY BANKING

Alaskan labor unions are protesting plans by the First National Bank of Alaska to hire a nonunion contractor for construction of a new headquarters and processing center in Anchorage. Page 14

CREDIT/DEBIT/ATMs

The head of Citibank's Latin American card operations questioned the wisdom of pressing smart and stored-value cards on banks in less-developed parts of South America. Page 17

FINANCE

Investors pummeled shares of both an upstate New York bank and a thrift after the two companies thwarted separate merger proposals. Back page

Norwest came to market with $300 million in senior paper, taking advantage of a receptive market and low interest rates. The funds are earmarked to meet loan demand. Back page

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