WASHINGTON

Federal Reserve Board Vice Chairman Alice M. Rivlin said that regulatory capital reserves no longer accurately reflect the riskiness of a bank's activities. Page 2

Thrifts hurt by the loss of regulatory goodwill can use a lucrative damage theory in stating their claims against the government, a federal judge ruled. Page 4

COMMUNITY BANKING

A Maine thrift is offering depositors an extra dividend for the third time in 10 years, keeping alive an all-but-faded tradition at mutual savings banks. Page 10

Montana's two trade associations agreed to push for legislation that would allow immediate branching inside the state while delaying the onset of branching across its borders until 2001. Page 10

MORTGAGES

The mortgage unit of Providence, R.I.-based Citizens Financial Group sold $5 billion of its servicing for $89 million to Dovenmuehle Mortgage. Page 12

CREDIT/DEBIT/ATMs

Banc One laid aside plans to issue a controversial credit card linked to 401(k) funds, because of a legislator's crusade to ban it and a federal agency's slow action to approve it. Page 13

By naming respected credit card banker David K. Hunt as chief executive officer, Global Payment Systems is reaching for credibility in the highly politicized merchant processing market. Regarding competitive concerns about the joint venture's impact on banks, Mr. Hunt said, "Generally, we see banks as our allies and partners in this process, not only domestically, but as we go globally." Page 13

The European Commission chose Visa over American Express to provide corporate cards for its employees, despite investigating the card association earlier this year for possible antitrust violations. Page 13

TECHNOLOGY

The Federal Home Loan Bank of Des Moines will sell its item-processing unit to M&I Data Services, further consolidating the check-processing industry. Page 14

Expanding on an existing marketing relationship, Compaq Computer and Oracle agreed to provide joint hardware and software service support for their common customers. Page 14

CORPORATE FINANCE

An advisory assignment in the latest aerospace megamerger has put J.P. Morgan & Co. front and center as banks vie for a piece of the action in the sector's consolidation. Page 21

MARKET MONITOR

A rise in the dollar and a rally in the bond market that followed a big selloff in the Japanese equity market overnight helped bank stocks roar back from a weeklong slump. Back page

Bank bond investors hoping the blitz of hybrid securities issuance will create bargains on traditional bank bonds already may have missed the opportunity. Back page

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