WASHINGTON
Big banks with undervalued stock prices would benefit most if regulators allowed institutions to count subordinated debt as capital, according to two researchers. Page 2
REGIONAL
To strengthen its currency for acquisitions, closely held BOK Financial of Tulsa, Okla., is considering a public stock offering. Page 4
COMMUNITY
The conflict between Illini Bancorp and its principal shareholders took another turn this week when Ida R. Noll sued the company over its poison pill plan. Page 6
MORTGAGES
At least seven law firms have filed complaints accusing Capstead Mortgage of misleading investors about its financial health for more than a year. Page 7
Thrifts will be hard-pressed to keep up their record profits in the second half, with home sales slowing and the yield curve still flat, analysts say. Page 7
TECHNOLOGY
Banc One has turned over its education loan originations to an outsourcer. Page 9
CARDS
BankBoston and Fleet have pledged to cap fees at their Massachusetts ATMs at $1 for two years. Page 11
INVESTMENT PRODUCTS
First Union is closer to its goal of accumulating $100 billion of mutual fund assets by 2000. The Charlotte, N.C., bank merged the $4.7 billion CoreStates fund family with its Evergreen Fund complex. The Evergreen fund family now has assets of $54 billion in 84 mutual funds. The bank could meet the asset target without making further acquisitions, says William M. Ennis, managing director of the fund group. Page 12
CORPORATE FINANCE
Bank of New York, a longtime lender to media and telecommunications companies, is setting up an M&A advisory shop to cater to that industry's merger boom. Page 21
MARKETS
The chairman of the Senate Agriculture Committee criticized commodities regulators for refusing to delay rules for swaps until late next year. Page 22
Washington Mutual shares slid after an influential analyst said he failed to see cost savings from the Seattle thrift's purchase of Great Western Financial. Back page
