WASHINGTON
The Federal Financial Institutions Examination Council has proposed to make it easier for banks with strong risk management programs to invest in mortgage derivatives. Page 2
Charging that minority-owned small businesses cannot get loans, a community group urged banks to massively expand their outreach efforts. Page 3
REGIONAL BANKING
The Boston Celtics basketball team has chosen a new banker - the Massachusetts subsidiary of Citizens Financial. "This was never about money, really," said bank CEO Lawrence K. Fish. "The marketing money spent is less than 5% of our annual marketing budget. It had to do with the chemistry between the team and the bank." Page 4
COMMUNITY BANKING
Two Houston bankers are separately striking out on their own to serve the city's Asian neighborhoods. Page 6
Community bankers interested in selling insurance can make more money teaming up with an agency than buying one or starting from scratch, an insurance consultant says. Page 6
MORTGAGES
In the race to feed investor demand for high-yield securities, mortgage companies are devising ways to milk more loans from the equity in people's homes. Page 8
A new approach to homebuying, in which a real estate agent or another single source oversees all shopping and financial arrangements, is gaining momentum. Page 11
INVESTMENT PRODUCTS
A Florida federal judge granted class-action status and preliminary approval of a settlement agreement to a case charging NationsBank's brokerage unit with deceptive sales practices. Page 12
First Union has officially rolled out Charles Schwab's popular OneSource Fund Supermarket to its customers. Page 13
CREDIT/DEBIT/ATMs
Henry M. Polmer, a veteran Washington attorney and a leading expert in electronic banking law, has moved west to take a senior post with Mondex USA. Page 14
Beneficial National and BJ's Wholesale Club may be close to resolving a legal dispute that flared up last month over their cobranded credit card partnership. Page 15
TECHNOLOGY
An Israeli company has introduced a system that it says will ease banks' and other large organizations' concerns about the safety of Java and Active-X programs. Page 20
Transaction Information Systems has opened a laboratory in New York aimed at helping financial firms move their business to electronic channels. Page 20
MARKET MONITOR
Though current business conditions show that low inflation is compatible with strong growth and low unemployment, a new economic era has not dawned, Federal Reserve Bank of St. Louis President Thomas Melzer said. Page 29