ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 31, 1995                   TAG: 9506010020
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: MAG POFF STAFF WRITER
DATELINE:                                 LENGTH: Medium

FIRST UNION UNDERWRITING APPROVED

First Union Corp. received approval from the Federal Reserve Board on Tuesday to engage in debt and equity underwriting and dealing activities through its wholly-owned broker dealer, First Union Capital Markets Corp.

First Union said it is the 10th bank holding company to receive such powers, previously reserved under federal law for securities firms.

The Federal Reserve Board also granted First Union authority to engage in advisory activities for commodity and index-swap transactions.

First Union expects to begin trading and underwriting corporate debt issues in about 30 days. The corporation expects to begin exercising the equity underwriting and dealing authority in 1996, pending further regulatory review.

Since early 1994, First Union said, it has been aggressively hiring experienced capital markets professionals and building the infrastructure required to support the new underwriting powers.

David Scanzoni, spokesman for First Union, said the decision means that the bank's subsidiary will be able to help large and small corporate clients to issue bonds and stock to raise money from investors. The Fed essentially granted First Union brokerage powers with another set of products to offer corporate clients.

Edward E. Crutchfield, First Union's chairman, said adding these powers "is a natural extension of our growing capital markets capabilities and a direct response to demand from our corporate customers across the nation. We have built an investment banking business to offer creative financing solutions for our clients' changing needs. Today we take a major step in leveling the playing field and increasing our ability to compete effectively with Wall Street firms."

The grant of authority supplements First Union Capital Markets Corp.'s existing capabilities, which include full-service brokerage, private placements, and underwriting and dealing for government and federal agency securities, municipal general obligation bonds, certain municipal revenue bonds, commercial paper and some mortgage-backed and asset-backed securities. 


 by CNB