MANAGEMENT STRATEGIES: REENGINEERING is perhaps the slipperiest and most overused word in the industry today. But increasingly, banks are undertaking major restructuring projects to cut costs, boost stock prices, and remain independent. This special issue explores the growing trend, including a close look at CoreStates' plans to cut $180 million of expenses. Pullout section WASHINGTON: AMERICAN DEPOSIT Corp. asked a federal appeals court to prevent the Internal Revenue Service from stripping the Retirement CD of its tax- deferred status, a move that would destroy the annuity-like product. Page 2 THE FEDERAL OPEN Market Committee's decision to cut the federal funds rate 25 basis points may have boosted Fed Chairman Alan Greenspan's prospects for reappointment. Page 3 COMMUNITY BANKING: A WALK near Devon Bank on Chicago's North Side takes one past an Indian grocery, a Russian deli, a Korean restaurant, and a kosher Dunkin' Donuts. Fortunately, Richard A. Loundy, Devon's chairman and CEO, thrives on financing businesses run by people far different from himself. Page 6 THE SMALL BUSINESS Administration wants to harvest new customers in farm states, where it is courting farmers that have rarely used its products in the past. Page 7 INVESTMENT PRODUCTS: MANY BANKS RELY on converting trust assets to help their mutual funds reach critical mass. But First Commerce of New Orleans, which seeded its funds with $500 million of trust assets, used retail sales to push its fund assets under management to more than $1 billion. Page 8 CREDIT UNIONS: MADISON, WIS., is home to 28 credit unions and the industry's dominant trade group, the Credit Union National Association. "They're very, very tough competition in our marketplace," says E. David Locke, president and chief executive of McFarland State Bank. Page 10 WESTERN CORPORATE Federal Credit Union must restructure its investment portfolio or risk a downgrading of its performance rating, sources said. Page 11 MORTGAGES: NOT ALL home equity securities can be termed "secure." That's because Wall Street firms have increasingly been putting other, riskier assets into securities that are composed primarily of second liens. CREDIT/DEBIT/ATMs: CONSUMERS IN 17 states would be able use their credit cards to pay state or local fees, fines, and taxes - if pending legislation is enacted. Page 16 BANK OF AMERICA didn't have to look far to replace Robert Sznewajs as chief of its credit card group in Phoenix; it simply promoted Stephen B. Galasso, executive vice president for credit card marketing, to president of the card unit. Page 17 TECHNOLOGY: AFTER YEARS of concentrating on postmerger systems integration, Chemical is now aggressively developing remote banking initiatives. Page 18 NATIONSBANK and BankAmerica said they had completed their acquisition of Meca Software Inc., a prominent maker of personal finance software. Page 19

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