Thrifts Keep Paying For Past Follies

LOOK FOR A BATTLE NEXT year at the Federal Deposit Insurance Corp. Chairman Ricki Tigert announced on Dec. 13 that Bank Insurance Fund premiums for commercial banks will be cut in the second half of 1995. Those premiums can be reduced because the fund has been largely replenished after paying out for a spate of bank failures several years ago. But the Savings Association Insurance Fund, the comparable fund for savings and loan institutions, won't be rebuilt for years. Thrift lobbyists argue that the lower BIF premiums for banks will put S&Ls at a disadvantage and want the two funds merged.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.