WASHINGTON: NATIONAL BANK regulators say that institutions could permanently lose the right to branch into other jurisdictions if their home states "opt out" of the nation's interstate branching law. Page 2 RAISING CAPITAL would become easier and cheaper for private and public enterprises if the wall separating commercial from investment banking were removed, Congress was told. Page 3 COMPLIANCE: ON FRIDAY, for the first time, the government will collect deposit insurance premiums by quarterly debit. In addition, bankers will begin reporting more information about their derivatives activities via the March 31 quarterly call report. Page 6 ALMOST ALL of 89 comments by bankers blasted the Federal Reserve's fifth try at changing the way annual percentage yields are calculated under Truth-in-Savings. The proposed rule is not only mathematically incorrect but also would cost the industry millions of dollars, they said. Page 7 INVESTMENT PRODUCTS: BANKS ARE STILL having difficulty practicing what they preach about doing a better job of coordinating the private banking, trust, and investment management services they sell to the wealthy. Page 10 NATIONSBANK and BankAmerica may have chosen just the right time to exit the corporate trust business, bankers and industry consultants say. Page 11 CREDIT/DEBIT/ATMs: SOME IN PAYMENT services appear disappointed that Citibank and Online Resources and Communications have settled their lawsuit without getting a court ruling on the patent infringement issues in their dispute. The industry had looked to the case for guidance, but the combatants won't even reveal the terms of settlement. Page 12 NABANCO, the top processor of credit card transactions for merchants, has become the first in that business to embrace Microsoft's secure transaction technology for on-line credit card purchases. Page 12 TECHNOLOGY: BROADWAY & SEYMOUR announced that it has developed check imaging software aimed at boosting the back-office efficiency of community banks. Page 14 BANK OF BOSTON announced that it has agreed to license Intranet's new automated clearing house processing software. Page 14 COMMUNITY BANKING: HOURS AFTER Fleet Financial Group and Shawmut National said they would create the nation's ninth-largest banking company by merging, angry Connecticut lawmakers had threatened to derail about a dozen banking bills because the deal would cost the state 1,200 jobs. It was damage-control time for the state's other bankers. Page 16 THE BIGGEST independent thrift in North Carolina, RS Financial, rejected an unsolicited offer to buy the company, but the bid could force a sale anyway. Page 16 MORTGAGES: ADJUSTABLE-RATE mortgages, which had gained market share steadily for more than a year, accounted for 53% of the market in February, down sharply from their peak of 59% in January. Page 8 CHASE MANHATTAN's mortgage unit reshuffled its upper echelons, creating new posts for Rich Mirro, who will be chief operating officer for originations, and Geoff Dreyer, who will become chief operating officer for servicing. Page 9 FINANCE: THE MEGAMERGER of Bank of Tokyo with Mitsubishi Bank would create a stronger competitor in an increasingly international loan syndication market, as well as the world's largest bank. Back page

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