Today's News

WASHINGTON Banks will make less than 19 cents a month from the float on accounts held by federal benefits recipients, according to a Treasury study. It would take $6 to $10 to recoup costs, a bank lobbyist said. Page 2 REGIONAL BANKING Two shareholders of Greater New York Savings are trying to toss a wrench into the $2.5 billion-asset thrift's plan to sell itself to Astoria Financial. Page 5 MORTGAGES lehman brothers was expected to buy about $1.1 billion in servicing from Harbourton Mortgage Co. Page 9 COMMUNITY BANKING The Holtz family, controlling owners of Miami's Capital Bancorp, may be trying to sell out before they're forced to get out by a state regulator. Page 10 Western Bancorp in Southern California is buying Santa Monica Bank. Page 10 FUTUREBANKER The Internet will give banks a peephole into consumers' private business. That means big opportunities-and responsibilities. Soon nobody will have any privacy, "and that's actually a healthy condition," says one Net guru. "But a lot of things have to change in society before that's a safe condition." Magazine INVESTMENT PRODUCTS the trend of banks' putting their names on mutual funds may be making a comeback. Wachovia is the latest. Page 14 Federated Investors, known for selling mutual funds through banks, is now selling them at a bank. Page 14 TECHNOLOGY Diebold stock has been red-hot lately. Page 16 CORPORATE FINANCE Commercial banks still dominate the top ranks of lenders to the leveraged buyout community, but investment banks are gaining ground. Page 18 CREDIT/DEBIT/ATMs Wachovia completed a 15-month conversion of its in-house credit card processing system. Page 21 MARKET MONITOR Short-selling of bank stocks has accelerated on Wall Street. Page 29 WEEKLY REPORT: SMALL BUSINESS Increasingly sophisticated entrepreneurs are looking for financing and finding that their banks come up short both in savvy and in helpfulness. Page 12