
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, July 19, 1990                   TAG: 9007190676
SECTION: EDITORIAL                    PAGE: A-14   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Short

S&L SCANDAL

"WE ARE going to protect the depositors, and that's what this is all about," President Bush said of his S&L bailout at a recent news conference. "It isn't protecting any savings and loan people, it is protecting the depositors."

Oh yeah?

The "depositors" aren't all elderly ladies whose life savings are threatened. Under a ridiculous law still in place, wealthy investors broke up millions into individual deposits of $100,000 each, placed them with go-go thrifts - and it was all federally insured.

What a deal: high rate of interest, zero risk - and taxpayers pick up the tab. A lot of these "depositors" being bailed out are millionaires.

Meanwhile, regulators have been slow to close some insolvent S&Ls because their officers voted themselves huge salaries and severance pay - golden parachutes. When the thrifts have to be closed anyway, guess who pays.

Congress recently tried to find out how much is being spent for these golden parachutes. The administration's bailout agency replied this was "privileged information." Not protecting any savings and loan people? Nonsense.

by CNB