June 11, 1985

The Supreme Court, upholding the idea of community-based banking, ruled today that regional banking zones were valid under both Federal law and the Constitution. The vote was 8 to 0. The Court upheld the so-called New England Compact, under which Massachusetts and Connecticut permit New England-based bank holding companies, but not those from New York or other states outside the region, to acquire local banks. Similar regional banking zones are spreading quickly across the country, with 15 states now participating and others actively considering the step. The zones share the common purpose of strengthing regional banking while at the same time protecting local banks from acquisition by or direct competition from big banks in New York and other money centers.

Once upon a time, 650 people lived peacefully in twin apartment buildings that faced each other across East 44th Street, just a glance away from the grass and flags of the United Nations. The Beaux Arts, as the bulky pair was called, were residential hotels and the apartment suites were small. But the rents were regulated and the people were happy. They used to fling open their casement windows to enjoy the sun and the breeze that lifted off the East River. Some of the luckier ones, from apartments high up in the 17-story buildings, could even see the river. Each spring, they held a street fair to dance, plant trees and meet new neighbors.

''The case was quite rightly conducted as a medical matter. There was no crime.''

The insurance industry has initiated sweeping changes that promise higher costs or less coverage for most American businesses and public agencies, insurance experts say. The recent sharp increases in the cost of medical malpractice insurance are but one example of the new approach insurers are following to reduce their skyrocketing costs. The changes range from making insurance payments only on claims made during a policy period to putting more limits on the total amount that insurers would pay out for multiple claims. Another shift being considered would require for the first time that many policy limits include the legal costs of defending liability claims. Until now, insurers have paid the costs separately. The changes would mean the legal costs would be subject to a deductible and would be treated the same as a damage loss.

The cable television industry feels under siege. It is facing growing competition for viewer attention from the boom in video cassette recorders, and as fewer new cable systems are built, it is having trouble wooing and holding on to new subscribers. Those problems have cable programming networks seeking another way to attract audiences, and some of them think they have found it in pay-per-view television. Two cable networks, Showtime/ The Movie Channel and The Playboy Channel, announced plans last week for pay-per-view operations, and a third company, called The Exchange, is developing a similar offering. Pay-per-view allows cable subscribers to pay a small fee to see a specific movie or other special programming. Subscribers can get pay-per-view instead of, or in addition to, the continuous programming they now receive for a monthly fee from so-called pay-cable networks such as Showtime or Time Inc.'s Home Box Office.