Today's News

WASHINGTON

The SBA says a spending bill passed by the House would endanger its loan guarantee programs. Page 2

Calling him "superbly qualified," President Clinton nominated Roger W. Ferguson Jr. to be vice chairman of the Federal Reserve Board. Page 2

NATIONAL/GLOBAL

The turmoil at First Union is putting new emphasis on strong returns from the company's capital markets group. Page 4

The troubled $750 million loan to Iridium may have contributed to the abrubt departure of the star bank-loan fund manager at Van Kampen. Page 4

COMMUNITY/REGIONAL

The ABA has recommended governmental and financial actions intended to help farmers-and their bankers-weather future farm crises. Page 6

SPECIAL REPORT

prolonged economic expansion and the consumer confidence it generated have had a positive impact on the image of the banking industry. The latest national survey by American Banker and the Gallup Organization showed confidence in the banking system was at an all-time high, which may help explain an uptick in customersatisfaction levels. Pullout section

INVESTMENT PRODUCTS

Sales of mutual fund shares are on the rise, but the rate of redemptions is increasing even faster. Page 7

MORTGAGES

Shares of Fannie and Freddie, already down on worries about rising rates, lost more ground after the Treasury said it would buy back debt. Page 8

CARDS

First USA is hoping to gain a million credit card customers in a joint promotion with a start-up Internet company that is giving customers free PCs. Page 10

Visa has teamed up with a technology start-up to put merchant storefronts on bank Web sites. Page 11

TECHNOLOGY

Investors continued selling off Security First Technology shares despite its strong performance, as they shed Internet sector holdings. Page 14

MARKET MONITOR

Citigroup said it would combine its private banking, asset management, and emerging market pension fund organizations into a single unit. Page 30