BANK POWERS TO SELL ANNUITIES

The debate on banks' powers to issue and sell annuities will be heard and decided by the Supreme Court who granted certiorari on the questio n. Professor Frankel argues that banks may issue and sell fixed annuni ties in the form of deposits. These annunities belong to ''insurance b usiness,'' rather than ''insurance contract,'' which are reserved excl usively to the insurance industry; other financial institutions may is sue and sell fixed annunities. In sum, on this issue, the banks have i t.