Newspaper article THE JOURNAL RECORD

Briefly.Worldwide

Newspaper article THE JOURNAL RECORD

Briefly.Worldwide

Article excerpt

FSLIC Head Criticizes Rescue Plan WASHINGTON - With the federal insurance fund that covers $900 billion in savings and loan deposits broke and losing $10 million a day, the head of the fund Thursday said Congress is playing an ``unconscionable'' game of politics with a rescue plan.

Edwin J. Gray, chairman of the Federal Home Loan Bank Board, told a House subcommittee that Congress is falling prey to the worst-managed savings and loan companies that use political intervention to avoid effective supervision.

Legislation approved by the House Banking Committee to rescue the Federal Savings and Loan Insurance Corp. contains provisions that are ``a prescription for disaster,'' he said, adding that the overall plan eventually would require a taxpayer bailout of the S&L industry.

``I find all of this nothing short of unconscionable,'' Gray said in written testimony submitted to the House Energy and Commerce investigations subcommittee.

``I would never have believed that, despite advance warnings, Congress would fail to allow the FSLIC to recapitalize itself, leaving the fund deeply insolvent and virtually out of cash,'' Gray said.

United Bankers Announces Sale WACO, Texas - United Bankers Inc. Thursday announced that it had completed the sale of Southwest Bank, Garland. The transaction, which was originally announced in November 1986, recently received final regulatory approval.

Purchasers of the bank were a group of local investors headed by James D. Yoo.

United acquired the Garland bank in December 1984, along with Southwest Bank, Mesquite, when it acquired Texas Southwest Bancorp. Inc.

The Garland bank began operaions in August 1984 and at March 31, 1987 had total assets of $17 million. …

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