Word: ls
(lookup in dictionary)
(lookup stats)
Dates: during 1980-1989
Sort By: most recent first
(reverse)
...officially acknowledged, would require nearly $50 billion of capital support, more than three times the size of the present FDIC fund. Existing loan-loss reserves would provide part of the capital, but not nearly enough to cover the exposure. Estimates on the ultimate cost of rescuing the S and Ls increase almost daily, with some experts predicting $50 billion to $70 billion as the possible charge to the taxpayers...
...sharply limit the amount of junk bonds and other risky investments held by institutions insured by federal and state agencies. In addition, the federal deposit insurance system should be revamped to ensure that it encourages prudent management at financial institutions. At the moment, regulators bail out mismanaged S and Ls and often turn them over to new owners who commit little or no capital of their own and who get a free ride to continue the institutions' speculative activity at no risk to themselves...
Most investors make money by avoiding financial disasters. But a growing number of savvy business executives have begun seeking fortunes in the ruins of the savings and loan industry's insolvent institutions. Since 1984 investors have bought 260 failed S and Ls, most of them in the West and Southwest, where thousands of loans to the depressed real estate and oil industries have gone bad. Last week Robert Bass, 40, one of Fort Worth's billionaire Bass brothers and an accomplished takeover artist in his own right, joined the trend. He led a group that agreed...
...troubled S and L? For starters, once the bad loans have been excised, the thrift institution's traditional business of writing mortgages can be quite profitable. Now that many home loans have adjustable interest rates, few S and Ls should be savaged, as they were in the early 1980s, by having to pay high rates to depositors while receiving low yields on long-term mortgages. Furthermore, real estate prices in the Southwest cannot stay depressed forever. "We're at or near the bottom of the cycle for the Texas economy," says William Gibson, a former Continental Illinois banker who, with...
...greatest incentive for investors to buy large bankrupt S and Ls is that the Government will often promise to reimburse the new owners for any existing loans that are not repaid. Reason: the Federal Savings and Loan Insurance Corporation, a Bank Board unit that insures S and L deposits, would soon run out of money if it simply shut down the troubled giants. Paying off all American Savings' F.S.L.I.C.-insured depositors would have cost an estimated $4 billion to $5 billion, twice the price tag for last week's rescue. Thus the Bank Board must find buyers for the distressed...