Today's News

WASHINGTON

The budget bill that President Clinton signed into law last week eliminated a big tax liability for thrifts that convert to subchapter S corporations. Page 2

REGIONAL BANKING

The National Association of Urban Bankers has helped minorities increase their share of jobs in the industry. Page 6

The rival bid for Greater New York Savingsis said to have come from North Fork Bancorp. Page 6

CORPORATE FINANCE

OVER $11.25 billion of collateralized loan and bond obligations have been issued this year-nearly as much as the record $11.5 billion in all of 1996. Page 12

As others retreat, Fleet plans to expand in the municipal bond business. Page 12

COMMUNITY BANKING

One of the nation's few union-owned banks, Amalgamated Bank of New York, wants to get into the Washington market. Page 13

MORTGAGES

Ginnie Mae president Kevin Chavers wants his agency to play a central role in getting a new type of mortgage security off the ground next month. Financial asset securitization investment trusts "are a way to expand the range of offerings in the mortgage securities market," he says. Page 10

INVESTMENT PRODUCTS

The capital gains tax reduction that made such a splash in last week's budget deal could feel like a bucket of cold water to bankers who sell variable annuities. Page 14

Lincoln National, fortified by a deal to buy a Cigna unit, is planning to start selling life insurance and variable annuities to bank customers. Page 14

CREDIT/DEBIT/ATMs

Vital Processing Services, Visa's merchant processing partnership with Total System Services, has filled out its senior management team with two card industry veterans. Page 17

TECHNOLOGY

Fleet has retooled its call center systems with software from Scopus Technology. Page 18

Firefly Network, whose Internet intelligent-agent system brings people with common interests together, endorsed First Virtual's on-line payment method. Page 18

MARKET MONITOR

Rebuffing Fed Chairman Alan Greenspan, the Financial Accounting Standards Board rejected a request for changes to a controversial derivatives accounting proposal. Back page