FOR HIBERNIA CORP., the hard times in the Big Easy are over. CEO Stephen A. Hansel talks about the bank's recovery and progress in building a stronger Louisiana franchise. WASHINGTON: CIVIL RIGHTS Commission Chairwoman Mary Frances Berry praised the banking industry for its open discussion of lending discrimination. Page 2 THE WHIRLWIND of congressional activity surrounding Glass-Steagall Act reform has claimed its first casualty - the Federal Reserve's proposal to relax volume restrictions on banks' sales of securities. Page 4 WEEKLY DIGEST: HAVE SMALLER regional electronic banking networks hit upon a way to survive the industry consolidation many deem inevitable? That question and top stories from last week's American Banker are reviewed. Page 14 REGIONAL BANKING: SAYING IT was cleaning up the last of major problems from the early '90s, Hibernia Corp. agreed to settle a class action for a maximum of $20 million. Page 6 THREE YEARS after being taken over by BankAmerica, Security Pacific's finance companies have become a talent pool for other banks. Page 6 COMMUNITY BANKING: LOUIS J. CAPPELLI, chairman and CEO of Sterling Bancorp, rose through the ranks to lead the New York bank through a revival and expansion of business lines. Page 16 INVESTMENT PRODUCTS: A COMMUNITY BANK in North Carolina is helping some neighboring small-town banks sell investment products. Page 18 TECHNOLOGY: A TRADE SECRET suit that Banctec Inc. filed against a small rival appears to have backfired. Page 20 MORTGAGES: HAMILTON FINANCIAL Services Corp. has taken down the for-sale sign. In announcing its annual earnings, the San Francisco-based mortgage bank also said it would seek to go it alone, ending a five-month search for a buyer. Page 24 CREDIT UNIONS: THE GOVERNMENT has put its consideration of the industry's biggest merger on hold while allegations of serious misconduct by Patelco Credit Union officials are investigated. CEO Edgar F. Callahan said Patelco is working with the industry's regulator to devise a probe acceptable to both parties. Page 12 CREDIT/DEBIT/ATMs: VISA INTERNATIONAL is looking for two executives to fill the shoes of Jean- Jacques Desbons, who has headed its Europe-Middle East-Africa region for the last three years. The French executive, a former banker, announced last week that he will step down as soon as a successor is named. Page 26 FINANCE: STANDARD & POOR's Ratings Group placed about $750 million of Shawmut National Corp. debt on credit watch with positive implications, in reaction to Shawmut's announced merger with Fleet Financial Group. Page 30

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