Word: ls
(lookup in dictionary)
(lookup stats)
Dates: all
Sort By: most recent first
(reverse)
...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...
...overall losses would have been vastly smaller if Government regulators had seized control of insolvent S & Ls years ago. In 1983 the cost of the bailouts was estimated at only $10 billion. But the FSLIC never had enough cash simply to close down the thrifts and pay off the depositors. The Bank Board lobbied Congress for more money, but the politically powerful thrift industry consistently opposed such requests, along with almost any proposal to rein in the S & Ls...
Instead of liquidating insolvent S & Ls, regulators decided it would be cheaper and more expedient to sell them to private investors or merge them with healthy thrifts. Bank Board Chairman M. Danny Wall sharply stepped up the tempo of such sales last year, selling or liquidating more than 200 thrifts at an estimated cost to the Government of $39 billion in tax breaks and other incentives extended to the buyers. Critics contend that the regulators were taken for a ride. Fumed Iowa's Leach: "The dealmakers are laughing all the way to the piggy bank." But Wall staunchly defends...
...many banking experts to wonder whether the U.S. needs a separate S & L industry anymore. Thrifts hold about one-third of all U.S. mortgages, down from nearly 60% some 20 years ago. Says Laurence Fink, a partner in the Blackstone Group, an investment firm that is acquiring several S & Ls: "The average homeowner can get a mortgage without stepping inside an S & L. Maybe the thrifts have outlived their usefulness...
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...