Today's News

WASHINGTON Credit card issuers would be barred from penalizing customers who pay off balances monthly under a bill introduced by Rep. Joseph P. Kennedy 2d. The White House and financial regulators are using a light hand to craft policies on electronic money and high-tech banking services. MORTGAGES Standard & Poor's developed a model to help set capital standards for the companies offering GSE pool insurance. COMMUNITY BANKING Two major shareholders of a small Illinois banking company say its management is spending too much on "excessive" perquisites and shouldn't build an expensive new branch. California's Bay View Capital tripled the number of shares it can issue, giving itself more flexibility for making acquisitions or preventing a hostile takeover. CREDIT/DEBIT/ATMs Bankcard Holders of America may be less of a force in consumer advocacy after Ruth Susswein, its executive director, steps down at the end of this month. After three years at the helm of the Virginia nonprofit, she is leaving to concentrate on caring for her newborn son. Midwest Payment Systems has won a three-year contract to process credit card payments for CompUSA, the Dallas-based chain of computer superstores. INVESTMENT PRODUCTS State Street's investment management subsidiary hired a prominent trust and estate attorney from Ernst & Young to beef up its estate planning group. Demand for seasoned portfolio managers is growing among banks, mutual funds, and brokerages. CORPORATE FINANCE Just how closely can two markets converge? That question is on many minds as the markets for bank loans and high-yield bonds become more and more alike. With a new chief executive about to take the reins of its equity trading arm, HSBC Investment Banking is preparing for a makeover. TECHNOLOGY The Nanavati brothers are aiming to be the Lewis and Clark of banking industry biometrics. MARKET MONITOR Executives of U.S. Bancorp initially didn't want to sell to First Bank System, but they are likely to be richly rewarded for doing so. Investors in a popular security were left scratching their heads as the Senate Finance Committee began discussion of its tax budget.