Word: ls
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Dates: during 1980-1989
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President Bush's plan to bail out the savings and loan industry is getting little help from depositors, who are withdrawing their money at an inconvenient moment. The Federal Home Loan Bank Board, which regulates S & Ls, said last week that in January thrifts suffered a record monthly net-deposit outflow of $10.7 billion (total remaining S & L deposits: $964 billion). Because Bush's proposed $200 billion bailout package is to be financed in part from the thrifts' federal insurance premiums, which are based on the size of their deposits, the withdrawals could reduce that source of Government income...
...Government's cost of borrowing for the bailout, as well as worsen S & L losses by raising the interest that ) the thrifts must pay depositors. To calm fears of a possible run on deposits, Greenspan said last week that the Fed will provide cash to any insolvent S & Ls that need it to meet withdrawals...
...size: $100,000) from 9.6% to a hefty 10.75%. In California, Pasadena's BancPlus Savings followed suit with a 10.5% six-month rate. One reason for the feverish run-up was the need for the thrifts to compensate depositors for the perceived risk of putting money in those S & Ls, despite the Government's promise to insure all accounts...
...widening the losses at insolvent S & Ls, the rate increases may drive up the cost of the federal rescue, which under Bush's plan could cost $200 billion during the next three decades. By week's end, though, the ailing S & Ls began to show some restraint. Rates on six-month CDs fell to 9.5% at Commonwealth and 10.1% at BancPlus...
Devastated by bad management, rampant fraud and inept Government supervision, hundreds of thrifts are insolvent. The President's rescue plan calls for taxpayers and S & Ls to share the burden of a cleanup that could cost $200 billion over three decades...