Today's News

WASHINGTON

Republicans chose Rep. J.C. Watts Jr. of Oklahoma to succeed Rep. John A. Boehner, one of the leading proponents of financial services reform, as House Republican Conference chairman. Page 2

COMMUNITY Page 5

INVESTMENT PRODUCTS

Fidelity is moving swiftly to take advantage of Japan's deregulation of financial services. It plans to distribute its funds through 23 Japanese banks. Page 7

CARDS

American Express and First USA, a Bank One unit, have begun selling prepaid cards to their credit card customers. Page 17

MORTGAGES

Lenders and their vendors are competing to be first with technology to close loans on-line-and may be approaching the finish line. Page 18

REGIONAL

Victor J. Menezes, who succeeded James Dimon three weeks ago as co-head of Citigroup's corporate bank, issued an internal memo announcing the formation of an 18-member operating committee to help oversee the unit's strategic direction. Page 4

J.P. Morgan and Bankers Trust said their own statistical models essentially broke down during the third quarter. Page 3

Two months into his tenure as retail chief at California Federal Bank, Scott A. Kisting has already scored a major victory. Page 3

Technology Page 15

CORPORATE FINANCE

Though financing for leveraged deals is getting trickier, the pace of merger and acquisition activity will remain brisk, a Goldman Sachs investment banker says. Page 29

The high-yield bond market continued its rebound last week, with investors gobbling up $2.2 billion in new securities. Page 29

MARKETS

BankAmerica may report more losses in the fourth quarter resulting from its exposure to D.E. Shaw & Co. Back page

WEEKLY REPORT: INTERNATIONAL

A shift by trade finance banks in favor of U.S. importers is spurring consolidation, bankers say. Page 20