WASHINGTON

Key lawmakers introduced bills to reform the Federal Home Loan Bank System and expand credit union membership. Page 3

Under a new pilot program, the Federal Home Loan Bank of Chicago will fund and hold mortgages originated by its member institutions. Page 3

REGIONAL BANKING

KeyCorp said the single nationwide bank it will form this year from the present 12 will be divided into 28 sales districts centered on sizable metropolitan areas. Page 4

SunTrust Banks' fourth quarter earnings rose 9%, thanks to solid loan growth and a double-digit jump in fee income. The Atlanta-based bank, the nation's 19th largest, reported fourth quarter net income of $158.5 million, or 72 cents a share, compared with $144.9 million, or 64 cents, a year earlier. The bank is one of the first of the nation's top 25 banks to post earnings results this quarter. Page 5

CREDIT/DEBIT/ATMs

Associates First Capital, a Dallas-based subsidiary of Ford Motor, agreed to purchase J.C. Penney's entire Visa and MasterCard portfolio. Page 7

TECHNOLOGY

Nynex launched an automated bill payment program with Chase Manhattan. Page 8

A newly approved clearing house meant to reduce settlement risk in foreign exchange transactions appointed a new president and chief executive. Page 9

COMMUNITY BANKING

A surging number of thrifts nationwide have been buying up commercial banks in an effort to satisfy their hunger for more profitable business. Page 10

Attempts to slap a bank and a thrift together can lead to culture clash, as one soured merger in Minnesota illustrates. Page 10

INVESTMENT PRODUCTS

First Union's mutual fund unit hired a squad of sales representatives to increase its distribution through broker-dealers. Page 11

State Street Boston is getting ready to launch a set of "lifestyle" mutual funds for the retirement market. Page 11

CORPORATE FINANCE

Secondary loan trading appeared to hit stride in 1996, as the volume of loans traded continued to grow and a number of commercial and investment banks opened up operations. Page 18

The 1997 loan syndication market got off to a roaring start with Chase Manhattan launching two major deals. Page 18

MARKET MONITOR

The bond and stock markets rallied after the Commerce Department reported higher-than-expected unemployment insurance claims for the week ended Jan. 4. Back page

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