WASHINGTON
Financial reform has become entangled in the fight over confidentiality  of patient medical records, adding a new obstacle to the legislation.   Page 2   
  
Consumer privacy and market consolidation are hot topics among  government studies ordered by the House and Senate financial modernization   bills. Page 3   
COMMUNITY/REGIONAL
  
Hudson City Savings of Paramus, N.J., is slated to become one of the  largest thrifts ever to convert to a public company, but the stock is   getting a chilly reception. Page 7   
Progress Financial, a thrift holding company near Philadelphia, is  expected to report disappointing second-quarter earnings because of   troubles with its leasing portfolio. Page 7   
INVESTMENT PRODUCTS
  
Mutual funds geared to Internet stocks are popping up left and right as  investors look for a piece of the volatile action. Page 9 
NATIONAL/GLOBAL
The CEO of Key Bank in Cleveland said he would take early retirement and  leave at yearend. Bank analysts saw his departure as a sign that the much-   touted overhaul of its retail banking operation has run aground. KeyCorp   president Henry L. Meyer 3d is slated to assume Gary R. Allen's duties   temporarily. Page 4       
Halfway through the third straight year of sagging crop prices, farm  lenders are concerned about a possible rise in nonperforming loans.   Page 4   
  
TECHNOLOGY
Two more companies are joining the ranks of publicly traded Internet  banking software providers. Both are aiming at small and medium-sized   banks. Page 12   
U.S. Central Credit Union has approved an electronic commerce initiative  designed to provide affordable home banking capabilities. Page 13 
DIGITAL FRONTIERS
A small-business entrepreneur became so frustrated in dealing with his  bank that he founded a financial company for small-business owners.   Page 14   
MORTGAGES
Pitney Bowes has put its Atlantic Mortgage and Investment subsidiary  back on the block, this time using different investment bankers, sources   say. Page 16   
MARKET MONITOR
The Federal Reserve's candor campaign on interest rate policy seems to  have produced decidedly mixed results so far. Page 24 
A savings bank on the tony north shore of New York's Long Island could  stand tall among its peers if it would make some changes, says a Lehman   Brothers bank analyst. Page 30