COMPLIANCE: RICHARD L. MOUNT of the Independent Bankers Association of America says borrowers have plenty of time to consider their options before a mortgage closes. So he agrees with bankers who would limit borrowers' right to back out of a mortgage after it is closed. This and related Truth-in-Lending issues are covered in a package of articles. Page 16 WASHINGTON: LABOR SECRETARY Robert Reich said banks would play a "crucial role" in an educational campaign he plans as part of an effort to cure America's ailing savings rate. Page 2 BOLSTERING the banking industry's case, a new survey found that the public prefers to get student loans from private-sector institutions rather than the government. The survey found 60% of respondents hadn't heard about proposed limits on the program, but 72% believe banks and other private lenders should make college loans. Page 3 COMMUNITY BANKING: THE ROAD to increased real estate lending - and away from indirect auto loans - has been good to First Indiana Corp. It reported a 78% increase in second-quarter earnings, to $4.8 million. Page 6 TECHNOLOGY: CHECKFREE Corp. has joined with Automatic Data Processing to develop a PC- based electronic bill payment and banking service for small and middle- market businesses. Page 8 AN INDIANA community bank, Star Financial Group, is installing an electronic forms system to cut paper-related costs. It expects to have CheckGard, a product of Bottomline Technologies, Portsmouth, N.H., up and running in September. Page 8 MORTGAGES: MANY OF THE NATION's largest mortgage lenders have begun to charge prepayment penalties to deter customers from refinancing their adjustable- rate loans. The penalties are mostly being applied to mortgages to be held in the lenders' portfolios. Page 11 INVESTMENT PRODUCTS: THE NATIONAL Association of Securities Dealers is amending its controversial plan to regulate bank brokerages, a top official said. The group will soften restrictions it planned for joint marketing of bank products and investment products. Page 15 CREDIT/DEBIT/ATMs: EUROPE SURPASSED Japan and the United States in 1994 as the market with the most automated teller machines. Nineteen countries in Europe reported a total of 133,184 terminals last year, up 16%, according to a study by Retail Banking Research in London. Page 19 REGIONAL BANKING: INCREASED LOAN volume and stabilized funding costs brought Norwest and Comerica record second-quarter profits. BankAmerica boosted earnings in excess of Wall Street expectations, but a senior executive saw signs of worsening credit quality. And Great Western, the nation's second-largest thrift, posted 10% lower net. Page 4 FINANCE: BANK STOCKS, bonds, and other stocks nosedived after Federal Reserve Chairman Alan Greenspan cast doubt on future interest rate reductions. Back page FIRST CHICAGO Capital Markets is using the Internet to solicit underwriters for a $6.9 million bond issue by the village of Northbrook, Ill. Back page

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