Banking industry groups clashed with consumer advocates and law enforcement officials Thursday over whether new laws are necessary to protect consumer privacy and security in the blooming world of electronic commerce. Page 2

In the past year, the OCC has issued four alerts about purported Internet-only banks that have no charters or deposit insurance. OCC investigators reportedly are scrutinizing at least six others. Page 3


For shareholders of Carolina State Bank, which was ready to sell last July for $30.2 million, waiting a year was worth $8.1 million. Page 7


The revival of real estate lending and the growth of securitization are causing more banks to shift the focus of their real estate groups to the capital markets. Page 8

Bankers Trust and CIBC Wood Gundy Securities are expected to bring a $1.5 billion leveraged loan for Philip Services to market today. Page 8


Mark Korell, formerly the head of the nation's largest mortgage lender, Norwest, has taken the CEO job at a start-up mortgage software company in California. He had been in talks for the top job at Fleet Mortgage but said he chose the offer from Industrywide Mortgage Exchange because the idea appealed to him. Page 10


The head of Federated Investors' trust department sales effort has left the company to take a job in consulting at Spectrem Group. Page 12

Bessemer Trust, a bastion of old-school investment management, is offering hedge funds to attract new clients. Page 12


Banc One will install more than 800 ATMs in Sears stores as part of its plan to become one of the nation's largest deployers. Page 13

AT&T Universal is stripping some of the benefits from its "classic" credit card program. Page 14


First American Bank in Illinois is testing a system from Fiserv that links the bank's Internet services with its call center. Page 15

Digital Insight is giving its 150 financial institution clients the ability to offer Cybercash's electronic wallet for payments of less than $25 over the Internet. Page 15


Competitive pressures have so depressed loan interest rates that banks increasingly are inadequately rewarded for the risks they take, a survey found. Page 22

Bank stocks lost a little steam on Thursday after a heady performance earlier in the week. Analysts dismissed talk that the sluggishness in the stocks could be an indication of deeper decline in the future. Back page

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