WASHINGTON

Thirty-eight banks have used Section 20 subsidiaries to build investment banking businesses even before Congress or the Federal Reserve opens the floodgates to full bank involvement in securities underwriting. Page 3

Bank regulators are grappling with capital rules for a new breed of derivative designed to hedge loan concentration risk. Page 2

REGIONAL BANKING

Unionbancal is facing an unlikely image problem: Environmental activists launched a boycott against it as a means of pressuring a Japanese company loosely affiliated with its parent. Page 4

Norwest said it would cut 250 jobs in its Des Moines credit card operations this year and transfer hundreds more from its Iowa bank to Colorado in the next two years. Page 4

COMMUNITY BANKING

States are scoring key victories in the bank charter popularity contest. Last year, 43 national banks chose state charters, and 28 flipped from state to national charters. Page 6

The people who helped pioneer the investment strategies involved in the rise and fall of Kansas' Franklin Savings Association are beefing up their Indiana thrift. Page 7

MORTGAGES

The nation's 25 largest thrifts boosted their assets by 8.5% in 1995 and their deposits by 4.6%. An analyst said both numbers show that the industry is "tamping down the growth because their primary product, namely single- family mortgages, has proved to have severely shrinking net interest margins." Page 8

Sanwa Bank slashed the rate on its home equity credit line to below 6% in a drive to capitalize on California's rebounding economy and consumer confusion over recent bank mergers in the state. Page 9

CREDIT/DEBIT/ATMs

The U.S. Postal Service has decided that accepting plastic is too expensive when it comes to payments for bulk mailings. Page 27

TECHNOLOGY

Observers are wondering whether new products that marry a computer to a television set will overcome consumers' resistance to home banking. Page 28

CSK Micrognosis is testing software designed to simplify traders' timely gathering of market data. Page 29

INVESTMENT PRODUCTS

Richard Baxt plans to help banks carve attractive niches for their investment products as a new executive vice president in charge of developing investment products and services at Bisys Group. Page 30

FINANCE

Bankers Trust and Procter & Gamble have settled their high-profile derivatives case, with the consumer goods company agreeing to pay about $50 million of the $195 million in dispute. Back page

Ford Motor has completed the sale of nearly 20% of its interest in Associates First Capital, raising nearly $1.9 billion in one of the largest U.S. initial public offerings. Back page

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