WASHINGTON

The government is opposing Supreme Court review of a director and officer liability case. Banks had hoped for a decision that would make prosecutors prove not mere negligence, but gross negligence. Page 2

Bank of America's trading-risk chief, Lewis Teel, says there is virtually no chance that a loss could imperil the company: "There isn't market capacity in the world to do that." Mr. Teel will appear before the House Banking Committee today to testify about risk assessment. Page 3

REGIONAL BANKING

Wells Fargo has tapped two senior wholesale executives and two retail bankers from First Interstate for key positions after the April 1 merger. Two other key First Interstate executives, including its banking technology chief, have decided to leave. Page 5

U.S. Bancorp has switched from pooling to purchase accounting for its pending acquisition of California Bancshares. The change will let it repurchase shares, minimizing stock dilution from the deal. Page 5

COMMUNITY BANKING

Norwest has turned up the pressure in its longtime quest to raise Iowa's 10% cap on deposit market share. In addition to backing a stand-alone bill, it is pushing an amendment to a measure already passed by the Iowa House. Page 7

CD-style deposits skyrocketed last year at the nation's credit unions - a sign of the industry's aggressive attempt to keep and build its membership. Page 6

INVESTMENT PRODUCTS

NationsBank is in trouble with Texas, where it has more brokerage offices than in any other state. The state's Securities Board will hold license-revocation hearings over allegations that some investors were misled. Page 8

Money flooded into bank-managed commercial sweep accounts last year, helping drive up revenue from these short-term investment accounts. Page 8

MORTGAGES

The annual meeting season is approaching, and companies in the mortgage business should be prepared to answer questions like "What effect did the adoption of FAS 122 have on your balance sheet?" Page 10

Buying servicing rights on adjustable mortgages has paid off for American Savings. Last year those rights yielded 47% of total net servicing income for the Irvine, Calif., thrift. Page 10

TECHNOLOGY

Alltel and Five Paces Inc., which sells banking software for users of the World Wide Web, have teamed up to promote Internet banking. The partnership is a meant as springboard for Alltel's Internet-based outsourcing service. Page 16

CREDIT/DEBIT/ATMs

There are huge profits in the fine print on many credit card solicitations - fine print telling about insurance to repay debt outstanding at death or if you become disabled or lose your job. Page 12

Kmart, one of the nation's largest discount retailers, is experimenting with a private-label credit card program to attract more customers and increase sales. Page 13

FINANCE

Money Store completed a successful stock sale in the nick of time - just two days before Friday's market collapse. Page 18

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