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

DATE: WEDNESDAY, May 17, 1995                   TAG: 9505170072
SECTION: BUSINESS                    PAGE: B-8   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

IN BUSINESS

The government may be forced to contribute billions more to the savings and loan cleanup even as the agency created to resolve the crisis goes out of business, Clinton administration officials said Tuesday.

Treasury Secretary Robert Rubin told a House Banking subcommittee the six-year cleanup cost is expected to be between $87 billion and $95 billion before the Resolution Trust Corp. winds up its work this year.

Considering that $105 billion was appropriated to protect S&L deposits and pay for losses of failed thrifts, Rubin said, ``This effort should be viewed as a success.''

But the administration said the costs could go higher because the Savings Association Insurance Fund, financed by industry-paid premiums, lacks resources to handle likely new S&L failures.

The RTC does not go out of business until the end of 1995, but after June 30 the taxpayer-funded agency no longer will be responsible for protecting S&L depositors.

- Associated Press

Saab brake flaw prompts recall

STOCKHOLM, Sweden - Swedish automobile manufacturer Saab announced Tuesday it will recall 53,000 of its 1992 Saab 9000s after discovering a minor fault in the braking system.

``It is a tiny electrical fault,'' said Peter Saltzer, a Saab Automobile press spokesman. ``Under unfavorable conditions, condensation water might leak into the system, which could reduce braking power.

``The braking power is still there but you have to push a bit harder,'' he said.

In late April, Saab announced it would recall nearly 26,470 cars made between 1992 and 1995 because of faulty engine components, transmissions or anti-lock brake systems.

- Associated Press

Wood company adds division

Architectural Wood, a Roanoke custom millwork producer, has created a new division to manufacture custom casework and cabinets using computerized machinery. The new division is headed by Swen Thompson as manager and Tammy Hale as production supervisor.

- Staff report

Fire rebuilding contract awarded

Building Specialists Inc. of Roanoke has been awarded a contract to reconstruct 11 units at Ridgewood Farms condominiums that were damaged by fire in March. The work includes reconstruction of the third floor and roof of the damaged building and replacement of interior finishes, cabinets and mechanical systems in other units. Work is expected to be completed in August. F&W Management Corp. manages the property for the homeowners' association.

- Staff report