Today's News

WASHINGTON

Banks would lose a big incentive for helping employee buyouts under a small-business tax bill passed by the House. Page 2

A federal appeals court gave new life to the government's authority to void oral contracts made by failed banks and thrifts. Page 2

REGIONAL BANKING

First Interstate, now absorbed by Wells Fargo, will live on as a name and logo as a result of Wells' deal with a Montana community bank. Page 4

Norwest plans its second Omaha supermarket branch, and First Bank System is opening two in Iowa grocery-discount stores. Page 4

COMMUNITY BANKING

A split between two Illinois banking trade groups has sidetracked at least until 1997 the effort to expand bank insurance powers. Page 6

Idaho's economic renaissance has stimulated a wave of bank start-ups. Page 6

FINANCE

Veteran analyst Larry Cohn admits his bearish view of bank stocks, taken in late 1994, was wrong. Banks in the past year kept a far tighter lid on expenses and held off rebuilding loan-loss reserves much longer than he thought possible. But the bill for these actions must be paid, he says, and first-quarter earnings were unsettling. Page 18

Insiders at several major banks have been aggressively selling their companies' shares, while executives at small to midsize banks have been buying. Back page

MORTGAGES

The need for greater clarity was a driving force in the recently completed negotiated rulemaking process under the Real Estate Settlement Procedures Act, write Mary Burt and Christian Jones. Page 9

INVESTMENT PRODUCTS

Seeking to leverage its relationships with the affluent, Fidelity Investments is actively pursuing one-on-one contact with select customers. Page 10

Credit Suisse hosted an outing for 10 private banking clients aboard the aircraft carrier U.S.S. John F. Kennedy. Page 10

CREDIT/DEBIT/ATMs

Jerry Craft has kept his word that his start-up credit card consulting firm would maintain a low profile, letting clients garner attention if they chose. Page 11

First USA fired another warning shot at MBNA, hiring an affinity marketing chief. Page 11

TECHNOLOGY

First Chicago NBD has hired American Management Systems to build a $10 million global trade processing system. Page 14

Harbinger Corp. said it will use Internet-based data encryption software from Northern Telecom. Page 14