WASHINGTON

The Fed proposed a significant expansion of the powers of U.S. banks overseas. The plan includes dropping some limits on underwriting and dealing in equities and debt securities, permitting more venture capital investments, and expediting branching applications. Page 2

REGIONAL BANKING

Indiana's Old National Bancorp warned analysts to cut 1997 earnings estimates because of expected loan losses from auto lending. Page 4

LaSalle National Bank has hired a onetime Northern Trust executive to help build its retirement services business for small and midsize companies. Page 4

COMMUNITY BANKING

Seeking to shave their tax bills, 561 community banks have taken advantage of a legal change that lets closely held companies convert to S corporations. Page 6

MORTGAGES

Amid fresh evidence of robust home building, experts marvel that builders haven't yet stumbled over a housing glut. Page 7

Allied Irish Banks, Dublin, is said to be considering a sale of its U.S. mortgage originators, Eastern Mortgage Services and First National Mortgage. Page 7

INVESTMENT PRODUCTS

NationsBank is teaming up with Hartford Life to offer the insurer's first proprietary variable annuity product. Page 8

CORPORATE FINANCE

BankBoston announced an alliance with Game Plan, a sports investment banking boutique. The bank, which has relationships with three sports franchises, has yet to break into the major leagues of sports lending. "The important thing is to make sure we have the right kind of experience available to us, because sports is very specialized," said vice chairman Paul Hogan. Page 9

TECHNOLOGY

The new general manager of Hewlett-Packard's worldwide financial services business unit is tackling some difficult challenges. For example, the company has to be flexible to serve a wide range of cultures and business environments. Page 11

U.S. banks are expected to increase spending on retail information technology by an average of 5.7% in each of the next five years, according to a survey by Datamonitor. Page 11

MARKET MONITOR

Bankers Trust shares skidded Thursday on new concerns over the bank's exposure in Southeast Asia. Back page

State Street announced several organizational changes, including two promotions to vice chairman. Back page

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