WASHINGTON

Responding to the Asian financial crisis, the Fed told banks to improve credit-risk management efforts or face more oversight. Page 2

REGIONAL

To reduce turnover, Unionbancal is getting its rank-and-file employees involved in hiring. Page 5

Two years of heavy merger activity have spawned not only banks of unprecedented scale, but also dizzying compensation for sellers' CEOs. Page 6

COMMUNITY

A call from the IRS prompted a Maryland banking company to revise its 1998 earnings. Page 7

INVESTMENT PRODUCTS

INSURANCE: Employees are willing to pay for extra "voluntary benefits," two studies conclude. Page 8

The financial services giant ING Group opened a division to sell insurance and mutual funds through banks. Page 8

MARKETS

Veteran bank analyst Robert B. Albertson resigned from Goldman Sachs to start his own global hedge fund. Pilot Financial will invest in international and U.S. bank stocks, says Mr. Albertson, who spent 12 years at Goldman as the director of U.S. bank research. Page 26

Banking companies would be more affected than other businesses if the proposed shift to a single form of accounting for mergers is approved, Bear Stearns analysts said. Back page

MORTGAGES

PNC Mortgage unveiled a new mortgage program to attract middle-class homeowners back into Philadelphia. Page 10

A highly publicized suit against subprime lender Delta Financial and Bankers Trust raised questions about the risk that supporting actors take in loan securitizations. Page 10

TECHNOLOGY

Brokat Infosystems of Stuttgart, Germany, with 1,600 financial services customers worldwide, says it is working hard to build U.S. business. Page 12

DIGITAL FRONTIERS

ELECTRONIC COMMERCE: Certco's chairman is urging banks to get involved in Internet security. Page 13

CARDS

Despite a pullback, Household International plans to remain a major player in the card business. Page 16

CORPORATE FINANCE

When it comes to commercial real estate, First Banks, the largest privately owned bank in the United States, can be gutsy. Page 25

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