It now appears certain that the negative effects of the Federal Reserve's interest rate increases will be evident at the end of this quarter at several major banking companies - in their venture capital units and, perhaps more important, in their overall asset quality.

Writedowns will not hit every banking company with a venture capital unit. Wells Fargo & Co. in San Francisco and FleetBoston Financial Corp. in Boston, for instance, account for gains and losses of an investment only when there is a material event, like a takeover or a sale of the security.

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