WASHINGTON

Chairman Jim Leach will need some quick deals with Democrats to gain the House Banking Committee's approval for his financial modernization bill today. Page 2

Consumer advocates and credit union representatives urged people to take advantage of the widest gap between the cost of credit and yields on savings offered by banks and credit unions in 20 years. Page 3

MORTGAGES

Four securities issues backed by subprime loans showed the effect of Southern California's 1990s slump when they were downgraded by a credit rating agency. Page 7

Despite their job fears, Americans in a survey remain upbeat about their chances to own a home. Page 7

COMMUNITY BANKING

Mid-Am of Ohio is going into debt collection as a means to sidestep traditional banking's change into a commodity business. Page 9

REGIONAL BANKING

Michigan National has restructured for competitive reasons into business units serving consumers, corporations, and small businesses. With the muscle of its $129 billion-asset Australian parent, the U.S. bank is positioning itself for growth through acquisitions, says chief executive Douglas Ebert, and may reenter mortgage banking and credit cards. Page 4

The Justice Department may use its inquiry into a burgeoning scandal at Citicorp as a warning to other banks to know their customers, an international banker said. Page 4

COMPLIANCE

Hoping to stem losses, John H. Harland Co. has merged Formation Technologies, its compliance software subsidiary, into its other operations. Page 10

The Internet can reduce compliance time and costs, a banker told the American Bankers Association's annual compliance conference. Page 11

INVESTMENT PRODUCTS

Buoyed by its acquisition of First Fidelity, First Union Corp. is making a play for the hotly competitive Northeast trust market. Page 12

Federated Investors has hired a new portfolio manager to oversee its top-selling mutual fund through bank trust departments. Page 13

CREDIT/DEBIT/ATMs

Visa International's board voted down a bylaw to prevent members abroad from issuing competing card brands but gave the six regional boards the option to adopt their own policies on the issue. Page 14

Edmund Jensen, Visa International's chief executive, took an indirect approach in defending the association against attacks by rivals. Page 14

TECHNOLOGY

Two big banks are working on pilot programs to move electronic data interchange services to the Internet, where they would be cheaper. Page 16

Citizens Financial Group hired Alltel Information Services to manage software applications and distributed computing services. Page 16

FINANCE

The economy is heading into a deflationary period that will require bankers to pay special attention to risk management, says Wachovia's chief executive. Back page

Great Western Financial shares rose on an upgrading by a PaineWebber analyst who noted the thrift's "bank-like" qualities. Back page

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