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CONGRESSIONAL MANDATE: A BANKING COUP (PART 2); ONLY 10 CRITICALLY UNDERCAPITALIZED THRIFTS AT YEAR END 1992

 CORAL GABLES, Fla., Jan. 12 /PRNewswire/ -- As a continuation to our Jan. 6, 1993 release noting that only eleven commercial banks were classified "critically undercapitalized" at year end 1992, we now report that only 10 non-RTCCP thrifts (S&Ls) were classified critically undercapitalized at Dec. 31, 1992. The critical capital requirement of 2.0 percent, set by Congress in the FDICIA's Prompt Regulatory Action Rule, requires regulators to take action within 90 days and to resolve within 9 months thereafter, any critically undercapitalized bank or thrift.
 Based on Sept. 30, 1992 data, just released by regulators, 94 FDIC- SAIF insured savings associations were classified critically undercapitalized. Seventy-five of those are presently in the RTC's Conservatorship Program, (A) which is exempt from the rule, leaving a balance of 19. (That number was released by the Office of Thrift Supervision on Dec. 17, 1992.) In the interim, Oct. 1, 1992 through Dec. 31, 1992, two of those institutions were acquired, leaving a balance of 17 critically undercapitalized thrifts based on Sept. 30, data.
 In verifying the capitalization of the 17 thrifts, three reported capital infusions, three reported combined earnings and asset shrinkage in the fourth quarter 1992 that caused their ratios to exceed 2.0 percent, one is classified a "bad bank" and, as such, may be exempt from the act and two others have "grandfathered in" capital plans that they are in compliance with.
 As we discovered upon closer examination of the critically undercapitalized banks, a significant number of critically undercapitalized thrifts responded to the Congressional promise of seizure with new efforts to improve their capitDelaware, Louisiana, North Caroli na, New Jersey, Rhode Island and Texas. A list of all 94 thrifts and their present status is available to the press by FAXing 305-441-0691 or calling 305-444-3125.
 Bauer Financial Reports, Inc., is a Coral Gables, Fla., based research firm that specializes in analyzing the financial condition of banks, thrifts and credit unions.
 (A) -- Not only are RTC-CP thrifts exempt from the resolution time frame but, the OTS may assign troubled thrifts to the Conservatorship Program through Sept. 31, 1993 thus avoiding the prompt resolution requirement.
 -0- 1/12/93
 /CONTACT: Brienne Jorgensen of Bauer Financial Reports, 305-444-3125/


CO: Bauer Financial Reports ST: Florida IN: FIN SU:

SS-JJ -- FLFNS2 -- 3808 01/12/93 07:35 EST
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Date:Jan 12, 1993
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