Magazine article American Banker

SAIF Tab Put Thrifts in Red for 3Q

Magazine article American Banker

SAIF Tab Put Thrifts in Red for 3Q

Article excerpt

After anteing up $2.1 billion to replenish its deposit insurance fund on Sept. 30, the thrift industry posted its first quarterly loss since 1990, the government announced Wednesday.

Thrifts lost $505 million in the third quarter, down from a profit of $1.93 billion in the second quarter and $1.59 billion a year ago.

"The important fact is that the one-time charge is now behind us," said Office of Thrift Supervision Director Nicolas Retsinas.

The OTS said the 1,378 institutions it regulates paid two-thirds, or $3.2 billion, of the special assessment levied by a Sept. 30 law rebuilding the Savings Association Insurance Fund. The after-tax expense for these thrifts came to $2.1 billion, according to OTS.

(Another 600 thrifts are regulated by the Federal Deposit Insurance Corp. In addition, banks that own thrift deposits contributed to the $4.3 billion insurance fund rescue.)

Capitalizing the savings association fund made it possible for thrifts, like banks, to receive deposit insurance at no cost. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.