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SAIFIAC ISSUES REPORT TO CONGRESS ON STATE OF THE SAVINGS ASSOCIATION INSURANCE FUND

 SAIFIAC ISSUES REPORT TO CONGRESS ON STATE OF THE
 SAVINGS ASSOCIATION INSURANCE FUND
 WASHINGTON, Aug. 28 /PRNewswire/ -- Norman M. Jones, chairman of the Savings Association Insurance Fund Industry Advisory Committee (SAIFIAC), today announced the release of the SAIFIAC's 1992 Report on the adequacy of the Savings Association Insurance Fund to the Committee on Banking, Finance and Urban Affairs of the United States House of Representatives and the Committee on Banking, Housing and Urban Affairs of the United States Senate. A copy of the Findings and Recommendations of the SAIFIAC is attached to this release.
 "The SAIFIAC's paramount concern is the adequacy of funds available to the SAIF to meet its deposit insurance obligations after Sept. 30, 1993," said Jones. "Our two major concerns, are that the lack of funding for the Resolution Trust Corporation will increase the number of failures left to be resolved by the SAIF, and that uncertainties regarding the amount and timing of receipt of previously authorized Treasury supplement payments to the SAIF threaten its financial soundness."
 The SAIFIAC was established in the 1989 FIRREA legislation to advise the Federal Deposit Insurance Corporation and to issue reports to Congress on issues affecting the Savings Association Insurance Fund. Copies of the full report are available through Merrikay Hall, counsel to the SAIFIAC, 212-837-6379.
 SAIFIAC REPORT
 Findings and Recommendations
 The SAIFIAC finds that:
 -- On Sept. 30, 1993, the SAIF will have inadequate funds to assume its deposit insurance obligations.
 -- The risk to the SAIF is greatest during the first two years of its active life - through the end of the government's fiscal year 1995.
 -- The risk to the SAIF has been significantly increased by the delay in receipt of assessments by the SAIF contained in the RTC Improvement Act, and the failure of Congress to provide funds needed by the RTC to complete its assigned tasks.
 -- It is crucial to the financial soundness of the SAIF that every dollar of Treasury supplements mandated by FIRREA be provided to the SAIF as and when provided by law.
 -- The absence of Treasury funding for the SAIF in the administration's budget for fiscal year 1993 is contrary to statutory intent and harmful to the SAIF.
 -- A financially sound SAIF is necessary to maintain public confidence in savings associations, avoid even greater taxpayer burden, and prevent destabilization of the housing finance system.
 The SAIFIAC recommends that:
 -- Adequate funding be provided immediately to enable the RTC to assume control of all SAIF-insured institutions that are identified as unable to become financially sound.
 -- Treasury supplemental payments to the SAIF required by law for fiscal year 1993 either be appropriated by Congress prior to Sept. 30, 1992 or be added to the proper appropriations for fiscal year 1994.
 -- Appropriate determinations be made and actions taken to designate appropriations for Treasury payments to the SAIF as mandatory appropriations to avoid further delays and uncertainties regarding the SAIF's receipt of such payments.
 -0- 8/28/92
 /CONTACT: Merrikay Hall of SAIFIAC, 212-837-6379, or Norman M. Jones, chairman and CEO of Metropolitan Financial, 612-928-5000/ CO: Metropolitan Financial Corporation; Savings Association Insurance
 Fund Industry Advisory Committee ST: Minnesota; Washington, D.C. IN: SU:


AL -- MN011 -- 4554 08/28/92 16:18 EDT
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Publication:PR Newswire
Date:Aug 28, 1992
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