Word: ls
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
Danny Wall, the chief U.S. regulator of savings and loans, is on a bailout binge. Last week the Federal Home Loan Bank Board, whose Federal Savings and Loan Insurance Corporation guarantees thrift deposits, said it would spend $1.9 billion to rescue 14 ailing Oklahoma S and Ls. The Bank Board merged the thrifts into six larger institutions in the hope of selling them to private investors. With the Oklahoma rescue, the agency has laid out a total of $9.8 billion in the latter half of August to salvage 45 thrifts, most of them in the financially troubled Southwest...
...Bank Board's moves are part of its so-called Southwest Plan for consolidating 109 ailing Texas S and Ls by the end of next May. The thinking behind the mergers is that the firms will save money by combining and streamlining operations and thus stand a better chance of survival. But the rescue plans will put a severe strain on the already cash-starved Federal Savings and Loan Insurance Corporation (FSLIC), the industry insurance fund that provides the money for the bailouts...
While the problems in commercial banking are serious, the situation in the savings and loan industry is an outright disaster. At least 500 of the more than 3,000 S and Ls are insolvent: their liabilities exceed their assets. In 1987 alone, the Government closed 17 insolvent S and Ls and paid stronger institutions to take over 31 more. The total cost to FSLIC: nearly $4 billion. FSLIC (pronounced fizz-lick in the industry) would have shut down many more S and Ls, but the agency virtually ran out of money to pay depositors. In the meantime, the insolvent...
Once again the weakest institutions are heavily concentrated in Texas, where 281 S and Ls lost $6.9 billion last year. In the rest of the country, S and Ls eked out a collective $100 million profit, but the industry is sharply divided between highly profitable institutions and those losing money at a rapid clip. "The bad few are pulling down the majority," says James Barth, chief economist for the Federal Home Loan Bank Board...
...will raise $10.8 billion in three years. Chairman Danny Wall of the Bank Board estimates that with the $10.8 billion and premiums from member institutions, the insurance fund will bring in nearly $30 billion during the next decade -- almost enough to take care of all the insolvent S and Ls. But other experts are not so optimistic. The FDIC's Seidman has told Congress the bailout figure could reach $50 billion, and some analysts put it as high as $100 billion. Few people believe the FSLIC can avoid going to the taxpayers for billions of dollars...