BANKING & FINANCE - Nov. 8, 1993

Comptroller Warns Banks on Mutual Funds: The Comptroller of the Currency said that many banks are not sufficiently warning customers who invest in mutual funds that those investments, unlike savings deposits, are not federally insured. In a talk before the American Bankers Assn. in San Diego, Eugene A. Ludwig said many banks have ignored guidelines issued over the summer that call for banks to make “conspicuous disclosure” in a prospectus or advertisement that mutual funds are not guaranteed by federal deposit insurance funds. His office will soon begin spot checks around the nation and take “vigorous enforcement action” against banks when necessary.