Two former members of the group's thriving securities subsidiary, the largest in South Korea, were recently arrested in an insider trading scandal.

The bank was not charged with any wrongdoing and has suspended two top officials of the securities subsidiary.

To get around the statute, banks have proposed ceilings for the time being equal to about 15 percent of the activities in the entire securities subsidiary.

The securities subsidiaries of big banks may become concerned, he said, that other securities firms may be snapped up quickly.

The study also found that the securities subsidiaries experienced managerial problems, internal control weakness and inadequate evaluation of credit and market risks.

A bid from a group led by the securities subsidiary of Marine Midland Bank won the issue.

Suddenly, corporate owners found themselves ponying up hundreds of millions of dollars to rescue securities subsidiaries.

Speculation that Prudential may sell its securities subsidiary, which lost more than $800 million last year, has been a perennial topic on Wall Street.

The bridegroom, 27, is a software designer in Chicago for the securities subsidiary of Bank One.

But two top officials at the securities subsidiary have been suspended.