Word: ls
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Dates: during 1980-1989
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Ohio's trauma probably further eroded the public's confidence in the safety of its deposits. "This problem with S and Ls is getting real widespread," said Accountant Bruce Humpherys, a thrift depositor in Pittsburg, Calif. "I'm wondering what's happening to our whole financial structure." The concern showed up dramatically in Pollster Albert Sindlinger's weekly survey of consumer sentiment. The percentage of people voicing confidence in the economy fell in one week from 50.4% to 42%, the steepest drop in the poll's 30-year history. "I wouldn't say consumers are panicked," said Sindlinger, "but they...
...because Home State's failure threatened to exhaust a private insurance fund of $130 million that covers deposits at 70 of Ohio's nearly 300 thrifts. Crowds of up to 1,000 people, some equipped with lawn chairs and portable TV sets, camped overnight in front of S and Ls, hoping to claim their money before it was all gone...
Governor Celeste decided that he had no choice but to close all the privately insured thrifts. The rest of the state's S and Ls were exempted from the order because they are members of the Federal Savings and Loan Insurance Corp., a U.S. Government agency that guarantees deposits of up to $100,000. After the closings, the Ohio legislature went into emergency session to debate various strategies for putting the thrifts back in business. Meanwhile, Celeste flew around the state almost constantly. The Governor huddled with bankers, gave reassuring speeches to crowds of reporters and depositors and answered anxious...
...crisis prompted depositors across the U.S. to wonder, maybe for the first time, just who insures their money. The large majority of deposit-taking institutions are federally insured--83% of S and Ls, for example. But 30 states, including Massachusetts, Texas and Illinois, permit at least some of their commercial banks, thrift institutions or credit unions to rely on private insurance funds...
Many Ohioans, including the Governor, admit that until now they never paid much attention to the fact that some thrifts were not insured by the U.S. Government. The privately insured S and Ls wear window decals that look as authoritative as the FSLIC symbols, but the thrifts are often not subject to the same degree of oversight as institutions that are insured by Uncle Sam. Some Ohio thrifts may not have sought Government protection because they wanted to avoid the paperwork and scrutiny that comes with U.S. insurance. Ducking the expense of complying with federal regulations may have helped institutions...