November 25, 1983

Because of an editing error, the Market Place column in Business Day on Wednesday incorrectly described the stock that shareholders in the American Telephone and Telegraph Company will receive after its divestiture of seven regional phone companies. For every 10 shares of A.T.& T. now held, shareholders will receive one new share of each regional company. They will also retain their existing Telephone shares.

Two recent Government reports have raised what many experts see as disturbing questions about the ability of Federal banking regulators to identify certain types of bank mismanagement and to compel wayward banks to mend their ways. The reports, issued by the Treasury Department and the House Government Operations Committee, indicate that the two most important Federal banking regulatory agencies - the Office of the Comptroller of the Currency Corporation - may be ill- equipped to detect banking crises before they occur or to compel remedial measures. No one questions the integrity of the two agencies. Rather, the issue is whether the banking authorities in an era of deregulated banking need to be better trained - and perhaps more sophisticated, suspicious and aggressive - in dealing not only with loan portfolios and operating results but also with the bankers themselves.

FRIDAY, NOVEMBER 25, 1983 International The Western allies have tentatively agreed to allow Japan to become the second-largest shareholder in the World Bank after the United States. In return, according to banking sources, Japan would be encouraged to increase its financial commitment to the International Development Agency, the World Bank's lending agency for developing nations. (Page D1.)

ABRIGHT blue tent has engulfed part of Lincoln Center, a sign that the Big Apple Circus is back in town for its third holiday season in Damrosch Park. Starting today at 1 and 4 P.M. and continuing through Jan. 2, the European-style one- ring circus, which received this year's Obie Award for achievement in theater, will feature an internationally praised juggler, Francis Brunn. Jim Tinsman will balance on one hand on a high ladder, and Nathalie Enterline will spin, kick and throw a hat and cane in a sort of dance, demonstrating the agility that twice won her world championships in baton twirling. Acrobats will perform, and so will teeter- board, tight-wire and trapeze artists, an Arabian stallion, a seven-piece band and three elephants who stand on their heads.

President Reagan said today that Yuri V. Andropov's announcement of plans to counter NATO missile deployment with new Soviet weapons was at ''sharp variance'' with previous Russian calls for arms agreement. ''While we are dismayed,'' the President said in a four-sentence statement, ''we are determined to renew our efforts to entirely do away with the land- based intermediate-range nuclear missile systems.'' The President, seeking holiday quiet at his mountain ranch near here, was briefed this morning by his national security adviser, Robert C. McFarlane, after Moscow's announcement that it planned to increase its nuclear weapons in Eastern Europe, within the Soviet Union and in unspecified ocean areas. Walkout Was Expected The announcement came a day after the Soviet Union broke off the Geneva talks on medium-range nuclear missiles, in what it said was retaliation for the start of deployment of new American missiles in Western Europe.