Regulators, confident that big banks can rely on their own computer models, have dropped some minimum capital requirements for institutions with large securities trading operations. Page 2

In an extension of supervision-by-risk, federal regulators issued new guidelines requiring top bank officials to supervise internal audits directly. Page 2 COMMUNITY BANKING

A federal grand jury indicted two Chicago-area community thrifts this month, charging that they stole customers' money to make political donations and other payments. Page 5

A judge's decision to remove price supports for milk has clouded the future for dairy farmers and the banks that lend to them. Page 5 MORTGAGES

Merrill Lynch Credit's chairman and president discuss the strategy behind the company's winning of the Malcolm Baldrige National Quality Award. Page 6 REGIONAL BANKING

Ending a month of confusion, First Union decided to move its Northeast headquarters to Philadelphia, the home of CoreStates, which it is buying. The plan had been to leave the office in New Jersey, but a news announcement got that wrong, and Philadelphians raised a stink when the bank seemed to backtrack. Page 4

The New York State Banking Department will open an office next year in Tokyo. Page 4 INVESTMENT PRODUCTS

As part of a full-court press in private banking, Crestar Financial will hire 60 relationship managers in the new year. Page 7

The fund company created by two portfolio managers from Evergreen Asset Management faces an uncertain future, industry experts said. Page 7 CORPORATE FINANCE

First Union Capital Markets plans to add some 20 professionals to its mergers-and-acquisitions advisory team in 1998, bringing the group's total to 35. Page 8 TECHNOLOGY

American Electric Power of Columbus, Ohio, plans to offer its customers an electronic bill presentment service from Checkfree, starting in January. Page 9 MARKET MONITOR

Shares of Dime have surged this month, fueled by speculation that rival Greenpoint Financial was close to an agreement to acquire the New York thrift. Page 19

Fallout from asia could continue to hurt money centers' stocks next year, analysts say. Page 20

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