WASHINGTON
Minutes after bank regulators withdrew the controversial know-your- customer proposal, Clinton administration officials rushed to defend the broader set of rules used to combat money laundering. Page 2
OTS Director Ellen Seidman said lenders should offer a subprime mortgage whose rate falls if the borrower's creditworthiness improves. Page 3
COMMUNITY/REGIONAL
First National of Kansas changed its advertising to highlight achievements by members of its community. Page 8
INVESTMENT PRODUCTS
Bank One vaulted up the ranks of U.S. fund managers by combining its mutual fund family with that of the former First Chicago NBD. Page 10
NATIONAL/GLOBAL
European banks are carefully watching Congress in hopes of a legislative change that would let banks own U.S. insurance companies, said ABN Amro Holding's chief economist. Page 5
Comerica promoted two executives to vice chairman, setting up a three- way race to succeed chairman and chief executive Eugene A. Miller when he retires in four years. He said he has no plans to retire early, though it is "reasonable" to conclude one of the three vice chairmen would succeed him. Page 6
MORTGAGES
HOME EQUITY: Residential Funding, General Motors' nonconforming home loan subsidiary, said it emerged unharmed from the credit crunch that plagued the subprime business.
DIGITAL FRONTIERS
SMART CARDS: The Smart Card Industry Association has to find a new CEO- but that is a good- news story for a once moribund organization.
CARDS
In a court filing, the Justice Department revealed the degree to which it is relying on private litigation against Visa and MasterCard to support its own case against the two bank-owned associations.
TECHNOLOGY
In reorganizing its Internet activities, Hewlett-Packard is borrowing some management ideas from start-ups.
Customer service representatives at Bank of America and Royal Bank of Canada are now using a "continuous feedback" software feature that lets them note interactions in a data base.
MARKETS
Citigroup said it has agreed to buy Mellon's $1.9 billion credit card portfolio. The deal would probably vault Citi past Bank One as the No. 1 issuer.
