WASHINGTON

THE GOVERNMENT, investigating fair-lending violations, will not target banks that charge higher rates to borrowers who are more likely to default on their mortgages. Page 2

FEDERAL and state bank trade groups are planning to appeal a recent ruling by Wisconsin regulators to let the Farm Credit System sponsor a credit union. Page 2

REGIONAL BANKING

BANCORP HAWAII recently bought four branches and $270 million of deposits in Arizona from H.F. Ahmanson. Chief executive Lawrence M. Johnson said, "To round out our presence in the Pacific Rim, a presence in California would make sense for us." And First Hawaiian, the state's second-largest bank company, pushed into the western states in a spring deal with U.S. Bancorp. Page 5

CHASE MANHATTAN has set up two joint ventures with the Student Loan Marketing Association to acquire and market student loans originated by the bank. Page 5

INVESTMENT PRODUCTS

INSURANCE: Transamerica has designed a simplified life insurance product to appeal to the bank market. A subsidiary offers a policy that pays death benefits monthly for many years, instead of in a lump sum. Page 7

TO CAPITALIZE on its position as a leading mortgage lender in Michigan, Standard Federal has acquired an agency that specializes in homeowner insurance. Page 7

KEYCORP PLANS to open five storefront brokerage offices reminiscent of discount brokerages, with running tickers and monitors offering stock and business information. Page 10

PAN AMERICAN, a Hispanic-owned community bank in Chicago, is capitalizing on the Macarena dance craze to sell certificates of deposit. Page 10

COMMUNITY BANKING

AN OKLAHOMA bank's unorthodox attempt at de novo branching has been derailed after two weeks of intense industry criticism. Page 12

BACK TO SCHOOL time goes for bankers, too, writes Paul S. Nadler. Page 12

MORTGAGES

LATIN AMERICAN nations and banks talked up the regional market at a gathering of U.S. mortgage bankers recently in Costa Rica. Page 13

INVESTORS have become more knowledgeable and cautious in choosing mortgage securities - they want simpler, less risky products. Page 13

COUNTRYWIDE has signed a four-year deal to sponsor a Senior PGA golf tournament held in Arizona. Page 14

CREDIT/DEBIT/ATMs

TWO GERMAN smart card manufacturers are using divergent strategies as they seek a place in the U.S. market. Page 15

TECHNOLOGY

TWO COMPUTER GAMES that simulate the banking business have undergone updates, indicative of new industry trends and training requirements. Page 18

FINANCE

KEYCORP, which two years ago completed a controversial merger of equals with Society Corp., is regaining favor on Wall Street in light of takeover rumors. Page 30

MBNA, with a new asset-backed security valued at $673 million to $842 million, is joining a growing group of American banks raising capital in Europe. Back page

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