WASHINGTON
The FDIC proposed to count nearly half of a bank's unrealized equity investment gains as Tier 2 risk-based capital. About 600 banks would be affected; SunTrust Banks would be a big winner. Page 2
REGIONAL BANKING
Tennessee banks are joining the trend of requiring noncustomers who want to cash checks put their thumbprints on the back. Page 6
Strong credit quality, fewer tempting targets, and a desire to minimize takeover speculation are speeding up merger negotiations. Star did its $655 million deal to buy Great Financial of Louisville in just three days. Page 7
CORPORATE FINANCE
To further "relationship banking," more banks are integrating credit and noncredit operations, Ernst & Young says. Page 8
MORTGAGES
Stepping into uncharted territory, subprime home equity lender First Finance introduced a secured credit card. Page 10
INVESTMENT PRODUCTS
Glendale Federal is going after what chairman Stephen J. Trafton calls "the largest untapped market out there"-middle-income people. The California thrift upgraded a bundled account; excess cash can be automatically swept into Kemper money market funds. Page 15
COMMUNITY BANKING
A new Illinois law that lets banks sell insurance has made small banks wary. Page 9
A South Carolina thrift company that for months fended off shareholder pressure now says it will look for a merger partner. Palfed Inc. claims it had objected to the idea of auctioning itself off, not to selling per se. Page 9
CREDIT/DEBIT/ATMs
American Express and the Marine Corps have launched a test of smart cards designed to simplify record keeping while serving as a cash substitute. Page 18
TECHNOLOGY
citicorp's executive vice president of advanced development has big plans. "Just like the entertainment industry, Citibank needs to redefine itself," Edward Horowitz says. Page 20
Hewlett-Packard and SAS Institute are teaming up to create a data mining laboratory that will work for financial firms. Page 21
MARKET MONITOR
Falling costs for apparel and upkeep helped offset surging energy prices in August, holding the consumer price index to a 0.2% gain. Page 30
