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WASHINGTON

A new study finds large banks price services for entire states or regions, not individual cities, implying competition may remain fierce even in concentrated markets. Page 2

REGIONAL

BankAmerica and NationsBank are beginning to tackle one of the toughest challenges posed by their pending merger: what to call the combined bank. Page 6

MORTGAGES

Despite lower mortgage rates, housing affordability for upper middle- class Americans declined in 1997, an annual survey says. Page 8

Mortgage servicers say they are better hedged than the hedge funds that recently took a bath on interest-only mortgage securities. Page 8

INVESTMENT PRODUCTS

Bank retail brokerages are finding themselves selling more bond mutual funds and fielding less demand for equity funds as investors seek shelter from stock market turbulence. Page 10

COMMUNITY

The states with the largest percentage of unprofitable banks in the first quarter were Idaho, Nevada, Hawaii, North Carolina, Arizona, California, and Florida. Page 14

TECHNOLOGY

In the quest to get more value out of branches, Union Bank of Norway is making more progress than most. Page 17

CARDS

EYES ON CREDIT: In her new book, The Overspent American, Harvard University economist Juliet B. Schor blames banks for helping consumers spend more. Page 19

CORPORATE FINANCE

Mutual fund companies this year are turning more attention to high-yield corporate loans and creating new customers for a market that was once the domain of commercial banks. "They've been a big success, especially with offshore investors," says Andrew Giullette, an analyst with Cerulli Associates Inc. There are now 12 high-yield corporate funds on the market. Page 32

MARKET MONITOR

There is now a 70% likelihood of a serious recession set off by a millennial computer virus, according to the Wall Street economist who has most closely tracked the year-2000 problem. Page 33

LETTERS Page 12

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