MARKET RISK: The federal banking agencies approved a rule requiring banks with large securities and foreign exchange portfolios to use an internal model to calculate the amount of capital they must hold against swings in the market. Published Sept. 6. Effective Jan. 1, 1998.
FIREWALLS: The Fed eliminated three firewalls that separate investment and commercial banking. The changes allow a single salesman to make loans and offer underwriting services. Also, employees may work for a bank and an affiliated securities unit and the two entities may buy most corporate securities from each other. Published Nov. 7. Effective Jan. 7.