WASHINGTON: FEDERAL RESERVE Governor Lawrence B. Lindsey said bankers must use caution when expanding their customers' credit card limits. Page 2 AS THE FEDERAL Home Loan Bank System negotiates with bankrupt Orange County to buy back some of its complex debt, critics inside and outside the system are asking whether the banks should be selling structured notes in the first place. Page 3 REGIONAL BANKING: CITICORP is planning to acquire the securities brokerage unit of Banca Serfin, Mexico's third biggest bank, sources close to the negotiations said. Page 5 COMMUNITY BANKING: THE RISE in interest rates is forcing many community banks to choose between the lesser of two evils: Either live with eroded margins or lose a significant chunk of equity with the stroke of an accountant's pencil. Page 6 A FEDERAL JUDGE awarded $500,000 in punitive damages to a Kansas community bank that successfully sued Shearson Lehman Brothers Inc. over a false credit reference. Page 6 MORTGAGES: ONE PROMINENT consultant thinks 1995 will be bad enough for the large California thrifts to make a couple of them disappear - swallowed up by large commercial banks while their stock is good and cheap. Page 8 INVESTMENT PRODUCTS: H. JAY SARLES, chairman of the Consumer Bankers Association and vice chairman of Fleet Financial Group, says fighting overregulation of banks' mutual fund activities is a top priority. Page 10 CREDIT/DEBIT/ATMs: MELLON BANK CORP. has weighed in with its version of a purchasing card for business customers. Page 13 HYPERCOM INC. said one of its central product offerings, the T7P point of sale terminal, has received certification from Visa U.S.A. Page 12 TECHNOLOGY: THE LATEST postal rate increase of 9% on first class mail could cost the banking industry upwards of $200 million this year, based on the amount banks spent on postage in 1994. Page 14 SHAWMUT NATIONAL Corp. has signed on as one of the first users of an interactive television system from AT&T Consumer Products. Page 16 FINANCE: SHARES OF the Student Loan Marketing Association have surged on prospects that the federal government's direct lending program may be cut back by the new Republican majority in Congress. Back page JAY ALIX, appointed by President Clinton as one of the first members of the new Bankruptcy Review Commission, has some advice for bankers: stay informed. Page 22

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