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Commercial banks and investment banks are squaring off amid the Financial Accounting Standards Board decision to reassess a ruling that loan commitments aren't considered derivatives. FASB is now reassessing the ruling as a result of pressure from investment banks, including Goldman Sachs, which went on the offensive in April to convince the FASB that the definition of a derivative should apply to credit arrangements. As it stands, securities firms must account for the fair value of their loan commitments while commercial banks can keep the loans off their books, making their balance sheets appear stronger and allowing them to offer below-market rate loans.

National City Bank is looking for commitments for American Greetings Corporation's $375 million revolving senior secured credit facilities. David Poplar, investor relations manager for the Cleveland, Ohio-based cards company, said the loan consists of two tranches: a $150 million, 364-day revolverg and a $225 million, five-year facility. American Greetings is also in the process of negotiating a three-year asset-backed trade receivables securitization facility of up to $250 million and is selling $400 million in senior subordinated notes due 2008.

Barclays Capital has turned its attention to U.S. investment grade research, the latest stage in a widespread effort to build up its U.S. fixed income business. The firm is looking for a head of investment grade research and senior analysts in a number of sectors, particularly industrials, utilities and financials, according to John Stathis, managing director and head of global market sales and research.

More than $50 million of Finova Group's bank debt traded and the paper jumped about seven points as the company's plans with Berkadia were finalized. Over the week the paper went to 92 from 85 and one desk reported trading $20 million of the paper last Thursday alone. Early last week, a U.S. Bankruptcy Court in Delaware approved Berkadia's plan to bail out Finova. That effectively ended a bidding war Berkadia had been waging with Goldman Sachs and General Electric Capital Corp., which had teamed up to present their own counter offer. Finova is a commercial lender based in Scottsdale, Ariz. Calls to the company were not returned. Calls to Berkshire Hathaway, Goldman Sachs, and GE Capital were not returned by press time.

Despite tough conditions in the loan market, Bank of America has stayed with Credit Acceptance Corp. to replace a $115 million maturing credit facility with an upsized $120 million loan. Douglas Busk, cfo, aware of pullbacks in the loan market, said "B of A [is] trying to better allocate resources to serve relationships." Busk added that, "Credit Acceptance has done five securitizations in the past and is likely to pursue them in the future. One of the things that improves relationships is other business." Busk said securitizations are typically used to pay down the debt on the credit facility.

Banco Santer Central Hispano is working on a synthetic balance sheet deal to remove an estimated 1.4 billion in Spanish corporate credits from its balance sheet. Bankers close to the deal said the bank launched the vehicle early in the month and Deutsche Banc Alex. Brown, underwriter for the transaction, is looking to price the notes for the vehicle next week. BSCH will reportedly retain the roughly 26 million equity tranche and the 1.146 billion senior subordinated tranche of the deals structure. Officials at BSCH declined to comment.

Citigroup is running out of time to arrange a syndicate for its $350 million credit facility for White Plains, N.Y.-based Metromedia Fiber Network, according to bankers familiar with the deal. Citigroup has less than two weeks before its letter of commitment expires and it is left carrying the entire loan. "Citigroup is on the hook for the whole thing. They've been unable to find any other banks to come in on it," one banker said. Citigroup has been working to arrange the syndicate since January. A loan syndication official at Citigroup declined to comment.

ING Capital Advisors reportedly priced the notes for its 350 million cash flow arbitrage CDO last week, according to bankers close to the deal. The deal represents the company's first deal funded completely with euro-denominated liabilities and one of a handful of traditional cash flow arbitrage Edenominated deals in the market this year. Officials at ING Capital Advisors did not return calls by press time. Goldman Sachs was underwriter on the offering.

Market players are looking forward to the launch of Bank of America's roughly $200 million refinancing credit next week for Apria Healthcare Group. The new loan will reportedly pay down roughly $200 million in subordinated notes the company has outstanding and maturing in November 2002. Officials at Apria Healthcare did not return calls. Structuring on the new deal could not be determined by press time.

The target date for legislation to amend the Gramm-Leach-Bliley Act to permit some bank cross-marketing under GLBA's merchant banking provisions is shortly after Labor Day, industry sources said last week. The competitive handicap the current cross-marketing provisions give banks versus rival insurance companies has some members of the industry resolved to try for Capitol Hill action, even though there is a risk of it backfiring if lawmakers start to make other changes in GLBA that banks don't want.

Bank of Novia Scotia and SunTrust Bank have stepped up to join Bank of America on Media General, Inc.'s $1 billion refinancing. Sun Trust is documentation agent, Scotia is syndication agent and B of A is lead manager for the credit launched June 5. The Richmond, Va.-based media conglomerate is involved in publishing, broadcasting and newsprint.