WASHINGTON
The FDIC. approved its 1997 budget, cutting 8% from this year's spending. Page 2
Alfonse M. D'Amato, chairman of the Senate Banking Committee, sharply criticized Swiss banks for the way they have handled the assets of Holocaust victims. Page 3
REGIONAL BANKING
Comerica is drawing near the end of a six-month effort to slash costs, and Wall Street is getting ready to scrutinize the results. Page 5
Texas' Temple-Inland has a $150 million deal to buy a California thrift. Page 5
COMMUNITY BANKING
The Genesis hedge fund agreed to withdraw hostile proposals and let a Philadelphia-area thrift alone after an unusual transaction akin to "greenmail." Page 9
A Maryland bank is suing a shareholder group it says illegally amassed its stock. Page 9
INVESTMENT PRODUCTS
Commercial banks are slowly gaining market share in the business of selling short-term investments to companies looking to temporarily park their cash. Page 10
Bankers looking to fill in investment-style gaps in their mutual fund families are finding more and more money managers ready to take on the job. Page 10
CREDIT/DEBIT/ATMs
A Pennsylvania community bank is selling its portfolio of 72,000 credit card holders to MBNA. Page 12
TECHNOLOGY
Technology took center stage at BAI's retail delivery conference. Michael C. McChesney, who heads the company behind the Security First Network Bank on the Internet, predicted that the hot item at next year's in New Orleans will be multimedia call centers that can handle and route telephone, E-mail and Internet video requests. "The No. 1, 2, and 3 Internet devices are going to be the browser telephone, the browser television, and the browser PC," he said. Page 14
Home Financial Network, known for the simplified approach that's been called "home banking lite," is offering versions of its HomeATM software for the Internet. Page 14
MORTGAGES
First American Financial is hoping that large mortgage banks will be less wary of its recently acquired on-line servicing system now that it is in steadier hands. Page 17
Mortgage lenders can now order private mortgage insurance directly through Freddie Mac's automated underwriting system, Loan Prospector. Page 17
MARKET MONITOR
Lehman Brothers added three midsize banks - Summit in New Jersey, First of America in Kalamazoo, and First Security in Salt Lake City - and to its coverage list and rated them "outperform." Page 21