Today's News

WASHINGTON PRIVATE AIR carriers have hired a big-name lobbying firm to show that the Fed unfairly subsidizes the fleet it uses to ferry checks around the country. Page 4 MORTGAGES A JUDGE has blocked HUD from refusing to insure reverse mortgages obtained with help from estate planning services. The agency denounced high fees planners have charged to seniors for the help. Page 6 THE FEDERAL RESERVE's raising of interest rates last week has so far proved to be a nonevent in the mortgage market. Page 6 PROFITS DOUBLED last year at Chase's mortgage banking unit, but those of Fleet's fell nearly 20%. Page 7 COMMUNITY BANKING A HANDFUL of midwestern bank executives are stretching the definition of community banking--sometimes by thousands of miles. Page 8 TRADITIONAL truths about managing banks tend not to be true after all, Anat Bird writes. Page 8 TECHNOLOGY BT Ventures grew out of John Herron Jr.'s belief that technology was changing banking faster than many realized. Four years later, the Bankers Trust unit has helped develop four technology firms. "The idea is to set up little companies in a truly entrepreneurial fashion." Page 15 CORPORATE FINANCE NATIONSBANK syndications expert Michael Zupon is set to join Merrill Lynch's growing loan shop. Page 9 SUNTRUST has picked up several bond salespeople from NationsBank's capital markets arm, which is apparently shifting its focus away from the financial institution business. Page 9 INVESTMENT PRODUCTS Commerzbank of Germany would score a first if its plan to acquire Montgomery Asset Management goes through. The Fed has never before let a foreign bank buy a U.S. retail mutual fund manager. Page 10 CREDIT/DEBIT/ATMs CARD FRONTIERS: A Canadian start-up's encryption tool kit is stirring up interest among smart card enthusiasts. Security Builder, which uses an advanced mathematical technique known as elliptic curve, is said to promise high-level security at modest cost. Page 12 MARKET MONITOR MOODY's reduced its rating on a key portion of asset-backed securities designed to stimulate investor interest in the subprime auto finance sector. Page 22 J.P. MORGAN is unveiling a system designed to help banks measure credit risk in their portfolios. Page 22