BANKING

Chemical Banking Considers Takeover of First City Bank: Chemical Banking Corp. is once again shopping for other banks and has targeted the struggling First City Bank in Texas as a possible acquisition. Peter Tobin, Chemical’s chief executive, told a meeting of securities analysts that the bank “has been very quiet this year” in acquisitions, focusing instead on the completion of its merger with Manufacturers Hanover Corp. Chemical said it would consider a bid for First City if government bank regulators provided some protection against future losses. Chemical already owns one of the largest banks in Texas--Texas Commerce Bancshares.