WASHINGTON:
HUNTINGTON's mortgage unit agreed to spend $420,000 to settle Justice Department charges that it discriminated against black borrowers in Cleveland. Page 3
TWO KEY House leaders have agreed that banks should not be required to move existing securities activities to holding company subsidiaries if the Glass-Steagall Act is repealed, industry sources said. Page 2
TECHNOLOGY:
INTEREST was reportedly keen as the first Internet-based bank opened its virtual doors. More than 40,000 "hits" were registered on Security First Network Bank's World Wide Web site in the first 12 hours. By accessing this "lobby page," customers can make deposits, pay bills, view images of canceled checks, and reconcile accounts at any time. Page 18
A MARYLAND BANK is testing the long-awaited financial electronic data interchange service of the National Automated Clearing House Association. Page 17
REGIONAL BANKING:
BANKAMERICA and Norwest posted big earnings gains for the third quarter, and Fleet and Republic New York were also up. Pittsburgh's PNC was the exception, reporting a sharp decline attributed to lower net interest income.
Page 4
THE WAY banks use their federal deposit insurance refunds has been a key indicator of relative strength as third-quarter earnings have unfolded. Page 4
COMMUNITY BANKING:
NORTHEASTERN community banks hoping to capitalize on merger mania are running into a problem: Nobody's buying. Six recent merger deals among 10 Northeast regionals have cut down the number of potential acquirers.
Page 6
A PROXY FIGHT has broken out over a Maryland thrift's stock option plan and the makeup of its board. "How can a company grant these sort of options after its first loss in 20 years and after its president has been on the job for only seven months?" asks the largest shareholder. Page 6
COMPLIANCE:
REGULATORS are ready to pounce on institutions where insider lending has gotten out of hand, a consultant says. With the vast turnover in senior management due to consolidation, some loans are falling through the cracks. Page 9
COMPLIANCE OFFICERS need to keep marketing and sales departments on a short leash, a consultant warns. Inventive sellers tend toward bait- and-switch, a compliance no-no, she says. Page 9
MORTGAGES:
THE RESURGENCE of consumer demand for fixed-rate loans fueled strong earnings at Fannie Mae and Freddie Mac in the third quarter.
Page 10
FRAUD by mortgage brokers has been on the upswing for the last few years, according to industry sources.
Page 10
INVESTMENT PRODUCTS:
CHASE HAS MOVED its offshore mutual fund operations from the Bahamas to Luxembourg so it can sell them in European Union countries. "In Europe you can't even have a brochure out on the table unless the fund is registered there," an executive says. Page 12
ONE DECISION the planned CoreStates-Meridian merger would require is which of their proprietary mutual funds should survive?
Page 13
CREDIT/DEBIT/ATMs:
CITIZENS BANK of Providence, R.I., has issued a Visa affinity card to benefit an environmental group, Save the Bay.
Page 15
FINANCE:
NEWS OF Wells Fargo's bid for First Interstate touched off a major rally in banking sector stocks, with especially heavy action on California thrift shares. Back page
SUNTRUST RECEIVED permission to add leasing and swaps transactions and underwriting of unrated municipal debt to its capital markets offerings. Back page
