Wall Street cheers when banks hire reengineering maven Chandrika Tandon. But a close look at the long-term results of these cost-cutting programs reveals something less than unqualified success for this brand of restructuring. Pullout section


A congressionally-chartered commission investigating the bankruptcy code is ignoring changes being pushed by lenders, says a coalition of banking trade groups. Page 2

A HOUSE BANKING subcommittee approved a bill to modernize the Federal Home Loan Bank System, but with pockets of opposition remaining, the legislation's future is uncertain. Page 3


Mercantile Bancorp. of St. Louis may report a $57 million loss. It cites acquisition charges, loans to a bankrupt retail giant - and a loss on its cobranded card with Southwestern Bell. Page 4


Phoenix Home Life is launching its own Connecticut-based trust subsidiary, eliminating the need to use banks as trustees for clients' investment management needs. Page 8

A New Jersey thrift whose whole business is selling CDs for funding college costs has won a round in its battle with the state agency that does the same in Florida. Page 9


A First USA unit wil issue commercial Visa cards for Oregon's Itex Corp., Portland, Ore., the largest barter exchange company in the United States. Page 10


They're trying, but big banks are far from creating small-business marketing forces as strong as those of their nonbank rivals. Page 12

Fast-growing product companies have been increasing their credit lines much faster than fast-track service companies, according to Coopers & Lybrand. Page 13


There's fishy business going on in Mississippi, and Community Bank of Indianola has a hand in it. Page 15


Atlanta led the nation's metropolitan areas for the fifth straight year in home building. Page 16

Many lenders are likely to report significant drains on their servicing portfolios for the fourth quarter and part the first, according to a Mortgage Bankers Association economist. Page 16


Bank technology stocks treaded water last week as investors speculated on the strength of first-quarter profits. Page 18

Commercial relationship managers at First Union National of Georgia are using multimedia software designed for the entertainment industry. Page 20


Stock of United Companies Financial, a home equity specialist, has jumped by a third since early January, spurred by sale of sideline insurance units. Page 23

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