Today's News

INVESTMENT PRODUCTS: MUTUAL FUND executives kicked off their annual convention in Washington last week by patting themselves on the back for keeping a market downturn from evolving into an investor stampede. Matthew Fink, president of the Investment Company Institute, called investor education "a major reason for this investor steadfastness." Page 10 WASHINGTON: THE FDIC scored a major legal victory last week as a federal appeals court affirmed the agency's decision to terminate a bank's coverage. Page 2 WHEN CONGRESS included the entire $125 million appropriation for her agency in a rescissions package, the architect of the Community Development Financial Institutions Fund says, "We tried not to take it personally." But Katharine McKee sees a glimmer of hope: The legislation is likely to be vetoed. Page 4 REGIONAL BANKING: THIS MONTH, First Interstate Bank of California became the last of the state's three biggest banks to start storing canceled checks rather than mailing them back to retail customers in monthly statements. Page 6 FIRST AMERICAN Corp. strengthened its market share in eastern Tennessee and established a foothold in Virginia with an agreement to acquire Charter Federal Savings Bank for $67 million in stock. Page 7 COMMUNITY BANKING: IN TEXAS, many community bankers say some of their competitors in farm lending have pulled back after being acquired by bigger banks. And many small banks have seized the opportunity to expand. Page 9 SMALL BUSINESS: HUNTINGTON Bancshares' use of laptop computers in sales presentations by calling officers is just one of the ways banks are putting technology to work for their small-business sales forces. Page 13 MORTGAGES: AS MANY mortgage companies fight for their lives in the rapidly consolidating business, Old Kent Mortgage has hired an Air Force fighter pilot veteran of the Vietnam War to help expand its retail business. Page 17 CREDIT UNIONS: STATE BANKING regulators are preparing to clamp down on Washington's 77 privately insured credit unions. Page 22 TECHNOLOGY: INADEQUATE management of operations and existing resources keeps many financial institutions from getting the most out of technology and reengineering efforts, a consulting firm's studies indicate. Page 18