November 21, 1998

Analysis of meaning of Kenneth W Starr's 'exoneration' of Pres Clinton on several matters he had long been investigating; says White House seeks to define exoneration broadly, as covering everything under investigation by Starr except Monica Lewinsky matter; notes Starr's testimony to House Judiciary Committee did not go that far; lawyers say prosecutor's failure to bring charges is not same thing as granting public official clean bill of health; says Clinton and members of his Administration have been criticized for skirting ethical or legal boundaries, even if their actions did not rise to level of criminal conduct (M)

Many residents of Carnegie Hill section of Manhattan are outraged about 2 1/2-foot-high sign of glowing red letters that hangs over Duane Reade drugstore; they say sign is garish and tacky; photos (M)

Iraq balks at handing over documents on chemical and biological weapons and missile systems, throwing up new roadblock to work of United Nations arms inspectors less than week after agreeing to cooperate; American and British officials warn that air strikes remain immediate option if Government of Pres Saddam Hussein does not honor its pledge to renew cooperation with inspectors; Iraq appears to believe it can balk on major issues pending comprehensive review of its relations with UN, but Security Council decided that review cannot take place until there is full cooperation with inspectors; confrontation has come sooner than expected; it raises questions about Hussein's understanding of seriousness of threat he faces and limited diplomatic help he can expect, if any, from former supporters like Russia, China and France (M)

Deutsche Bank AG, Germany's biggest bank, said to be about to acquire Bankers Trust Corp, 8th-largest American bank, for between $7.5 billion and $8 billion, in what would be biggest takeover of American financial institution by foreign bank; deal could be announced within week; purchase price would represent only small premium to total value of Bankers Trust's shares in stock market; price could go higher as details are finalized; Deutsche Bank has openly sought acquisition in US to make breakthrough into investment banking; Bankers Trust has carved out niche underwriting and trading junk bonds, but it lacks heft needed to compete with powerful Wall Street competitors (M)

A Late Surge Propels Dow Closer to July 17 Record Stocks rose, with a late-day surge pushing the Dow Jones industrial average to within 180 points of breaking its record high of 9,337.97 set on July 17. The Dow finished up 103.50 points at 9,159.55. Only six weeks after sliding below 7,500, the Dow is now up about 1,275 points for the year. The Standard & Poor's 500-stock index was up 10.94 points, to 1,163.55, and the technology-heavy Nasdaq composite index rose 8.53 points, to 1,928.21. [Page C3.]