WASHINGTON:
A FEDERAL APPEALS court in Washington made it substantially more difficult for the Federal Deposit Insurance Corp. to fend off lawsuits against failed banks and thrifts. Page 2
GLASS-STEAGALL repeal legislation was a hair's-breadth from being brought up on the House floor last week. But House Majority Leader Richard Armey changed tack after getting a strongly worded memo from Rules Committee Chairman Gerald Solomon. Page 4
REGIONAL BANKING:
SEEKING TO RETURN to an organizational structure it abandoned more than two years ago, California Federal Bank, a Los Angeles-based thrift, said it plans to form a holding company. Page 5
FINANCE:
HIGH-PROFILE acquisitions by First Union Corp. and First Chicago and abortive talks involving Bank of Boston have helped push trading volume in bank stocks to 146% of its average for July. Back page
ASSET-BACKED securities are off to one of their best months ever as banks and other issuers rush to take advantage of strong investor demand and low interest rates. Back page
COMMUNITY BANKING:
GRANT COUNTY Bank of Ulysses, Kan., had a board of directors in the 1980s consisting primarily of aging local business leaders who generally rubber-stamped management recommendations. But insistent regulators and persistent competitors have forced a boardroom transformation. Page 8
MORTGAGES:
THRIFTS PLAN to issue stock, borrow, or take one-time earnings hits to finance a likely $6.1 billion charge to recapitalize their insurance fund. Some may be forced to sell part of their mortgage assets, but the sales will probably be small. Page 10
NATIONAL COOPERATIVE Bank, Washington, D.C., has joined forces with Natwest Bank to extend a $51 million mortgage to a housing co-op in New York City. Page 10
INVESTMENT PRODUCTS:
BANKS ACCELERATED their drive into mutual funds in the second quarter as assets under management grew to $354.1 billion, a 15% market share. Page 13
INTERVIEWS with retirees, and those preparing to retire, found that many believe their savings are inadequate and some are unsure of their investments' security. Page 15
MARKETING ONE, a leading bank marketer of investment products, has snared Standard Federal, based in Troy, Mich., a large banking company that has yet to offer mutual funds or annuities. Page 17
CREDIT/DEBIT/ATMs:
WACHOVIA's bank card unit, after a year under Beverly B. Wells, has unofficially thrown itself into the cobranding arena after making its name by competing on price alone. Page 18
TECHNOLOGY:
GENERAL MOTORS' intent to spin off its Electronic Data Systems subsidiary may position EDS to be acquired by a larger technology firm but is unlikely to have an immediate effect on the unit's banking clients. Page 20
