WASHINGTON

Two-thirds of banks in a Fed survey said their credit scoring models failed to accurately predict loan-quality problems in their credit card portfolios. Page 2

Despite a string of recent legal victories, bankers are unlikely to score a knockout blow against occupation-based credit unions. Page 3

Rep. Henry Gonzalez appears likely to remain the House Banking Committee's ranking minority member when congressional Democrats vote today. Page 3

COMMUNITY BANKING

Van Stephen Moss didn't want to say goodbye to the South Carolina town that has been home to his ancestors for 200 years. So the First Union executive decided to open a bank of his own. Page 8

Pennsylvania's F.N.B. Bancorp. has a second deal to move it into the Florida market. Page 8

MORTGAGES

The globalization of the real estate market may be led by Realtors, not lenders, if the National Association of Realtors achieves the goals it set at its annual convention. International involvement was heavily emphasized. Page 12

A sharp increase in lumber prices is wreaking havoc with builder profits and may eventually price some potential homebuyers out of the market, according to the National Association of Home Builders. Page 13

CREDIT/DEBIT/ATMs

More banks are referring consumers who are having trouble paying their bills to phone, mail, and on-line credit counseling agencies. Page 14

Despite a reported interest in cobranding by Walt Disney Co., the entertainment giant seems satisfied with its current private-label card program with GE Capital. Page 14

INVESTMENT PRODUCTS

Several months after national banks and trust companies won the right to perform as trustees in any state, state-chartered institutions and their regulators are defending their turf. Page 19

TECHNOLOGY

Despite the explosion of interest in the Internet and on-line banking, consumers still want and use traditional branches, a September survey indicates. Of 1,000 consumers queried, 73% said they preferred to bank in person at a branch; only 22% said they wanted to bank exclusively by electronic means. Page 21

MasterCard International, Actra Business Systems, and several other influential companies have formed a consortium aimed at developing a corporate purchasing system for the Internet. Page 21

CORPORATE FINANCE

Toronto Dominion and Bank of Boston Corp. are lining up a $350 million loan for Metrocall Inc., the first financing for a paging company since a rival, Mobile Media, violated its loan covenants early this month. Page 29

Banks elbowing each other for space in the crowded capital markets have launched a heated battle in the financial pages as well. Page 29

MARKET MONITOR

Bank issues led a strong rally on Tuesday after economic data on housing starts fueled hopes for an interest rate cut in 1997. Back page

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