Newspaper article THE JOURNAL RECORD

S&l Assistance Chronology

Newspaper article THE JOURNAL RECORD

S&l Assistance Chronology

Article excerpt

Major assistance packages worked out by the Federal Home Loan Bank Board and the Federal Savings and Loan Insurance Corp. in their bid to save the nation's ailing savings institutions.

Estimates for the total cost of the transactions to the government range from $45 billion to $100 billion.

- MAY 13, 1988 - Coastal Banc Savings Association of Houston acquires four insolvent savings institutions. Coastal contributes new capital of $3.5 million; FSLIC cost is $138.3 million.

- MAY 18 - Southwest Savings Association, Dallas, acquires four insolvent savings institutions. Southwest provides $25 million in equity capital; FSLIC cost is $2 billion.

- MAY 25 - First Savings of Brenham, Texas, acquires Bluebonnet Savings Association of Texas, in Hempstead. First Savings provides $1.8 million; FSLIC cost is $9.9 million.

- JUNE 22 - Merabank, a federal savings bank in Phoenix, acquires two savings institutions. Merabank contributes $8.8 million in new capital; FSLIC cost is $83.9 million.

- AUG. 18 - An investment group, Gibson Group-LSST Financial Services, headed by a Chicago banker and backed by a Texas steel company, acquires 12 insolvent savings and loan associations. Gibson contributes $48 million in cash; FSLIC cost is $1.3 billion.

- AUG. 19 - Eight insolvent Texas savings institutions are consolidated under the FSLIC Initial FSLIC cost is $2.5 billion; long-term cost could total $5.5 billion.

- AUG. 23 - A holding company headed by William E. Simon, the former Treasury secretary, agrees to pay $207.5 million to buy the insolvent Bell Savings of San Mateo, Calif., and the outstanding stock of the healthy Western Federal Savings of Marina del Ray, in a deal in which the FSLIC will provide $565 million.

- AUG. 26 - The bank board announces five separate transactions in which it will inject almost $1 billion into 10 savings units that will be merged into healthy institutions. …

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