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

DATE: WEDNESDAY, March 13, 1991                   TAG: 9103130342
SECTION: NATIONAL/INTERNATIONAL                    PAGE: A-4   EDITION: METRO 
SOURCE: Associated Press
DATELINE: WASHINGTON                                LENGTH: Medium

HOUSE REJECTS S&L BAILOUT BILL

The House Tuesday night rejected a bill that would have pumped another $30 billion of borrowed taxpayer money into the bailout of depositors in failed savings-and-loan associations.

The bill, written by a bipartisan majority of the House Banking Committee and supported by the Bush administration, failed on a 220-201 vote.

Virginia Democrats Rick Boucher, L.F. Payne and Jim Olin voted in favor of the bill.

Also defeated were two similar proposals, one from each party, that would have provided the additional money but reflected congressional dissatisfaction with the way the Resolution Trust Corp. is managing the bailout.

The House shouted down a substitute that likely would have required future bailout funds come from a tax increase or by cutting other government programs, rather than through borrowing.

Financing the $30 billion through a tax increase would cost taxpayers an average of $330 each.

The agency has said it will have to suspend operations within a few days unless more money is forthcoming. The corporation has spent most of $50 billion in taxpayer money that was appropriated last year. Another $100 billion is being borrowed directly by the corporation to buy assets of failed S&Ls and will be repaid when those properties are sold.

The Senate voted last week to grant the additional $30 billion, which the agency said will allow it to continue shutting down institutions during the next 6 1/2 months.

Having rejected its own bills, the House may have to turn to the Senate measure to keep the bailout going.

The agency has sold about half the $300 billion of assets it has taken from failed S&Ls. Many members of Congress insist the property should be disposed of more quickly.

Much of the debate Tuesday centered on provisions in chairman of the committee Rep. Henry Gonzalez's, D-Texas, substitute bill that would have set a goal of awarding 25 percent of the bailout agency's contracts to companies owned by women and minorities.

Another disputed provision in that plan aimed to make it easier for low-income and moderate-income families to buy homes acquired by the bailout agency.

by CNB