GREENSPAN TO CONGRESS REVIVE S&L RESCUE FUND.Byline: Rob Wells Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. Federal Reserve Board Chairman Alan Greenspan Alan Greenspan Dr. Greenspan is Chairman of the Board of Governors of the Federal Reserve System. Dr. Greenspan also serves as Chairman of the Federal Open Market Committee (FOMC), the Fed's principal monetary policymaking body. expressed frustration Tuesday about Congress' inability to revive the ailing savings and loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. deposit insurance fund. He urged members of the House Banking Committee to push ahead with a compromise that would return full funding to the Savings Association Insurance Fund Savings Association Insurance Fund (SAIF) A government organization that replaced the Federal Savings and Loan Insurance Corporation as the provider of deposit insurance for thrift institutions. , whose financial problems are yet another legacy of the 1980s savings and loan disaster. "It is one of the few things that I think we know of that the Congress can really solve. . . . And you're not solving it," Greenspan said. "And I think that's why you're getting sort of a level of frustration amongst the four of us." Greenspan, joined by colleagues from the Treasury Department, Office of Thrift Supervision The Office of Thrift Supervision (OTS) was established as a bureau of the Treasury Department in August 1989 as part of a major Reorganization Plan of the thrift regulatory structure mandated by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) (12 U.S.C.A. and Federal Deposit Insurance Corp., urged passage of a bipartisan compromise to bring the Savings Association Insurance Fund to full funding and merge it with the separate and healthy bank insurance fund. Under the stalled compromise, the nation's 2,000 savings and loans would pay $6 billion to bring the thrift fund to its maximum level, while commercial banks would help S&Ls pay the $780 million annual interest on bonds related to the thrift cleanup. CAPTION(S): PHOTO Photo (Color) GREENSPAN |
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