Many banks want to offer mutual funds or underwrite certain securities products like municipal revenue bonds.

Until June, the only kinds of revenue bonds that banks could underwrite were those for housing or education.

At that time, banks underwrote the largest percentage of securities.

Out went the proposal to let banks write insurance policies and underwrite securities.

The American banks underwrote 22 percent of the issue and face potential total losses of more than $300 million.

Japan's top banks are underwriting securities in the Euromarkets.

The private bank underwrote about $2.5 billion worth of new issues, for a 22 percent market share.

A bank could underwrite commercial paper and municipal revenue bonds through a subsidiary of its holding company.

As a result of other loopholes, however, banks have been underwriting commercial paper for some time.

And it can provide long-term, high-rate incentives to encourage banks to underwrite housing development.