THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Thursday, January 4, 1996 TAG: 9601040010
SECTION: FRONT PAGE: A12 EDITION: FINAL
TYPE: Letter
LENGTH: Short : 32 lines
One budget proposal has received little press coverage but appears to have bipartisan support: a one-time assessment on all savings banks and thrifts whose deposits are insured by the Savings Association Insurance Fund (SAIF) of as much as 90 basis points. It would raise approximately $6.6 billion to recapitalize the SAIF and bring it into compliance with a statutory requirement to be at 1.25 percent of insured deposits. It is estimated that the average thrift or savings bank would incur a $3 million expense.
This proposed redistribution of funds from the private sector to the government is another example of unnecessary government interference. It is analogous to a successful restaurant owner paying for the failure of a competitor. For the thrifts and savings banks that survived the banking crisis of the 1980s, it is one very tough pill to swallow.
Proposed legislation such as the above, as well as constant changes in regulations and government policies, undermine the ability of our financial system to compete. It is about time that common sense prevailed and personal responsibility became the norm rather than the exception in Washington.
CHRIS O. KYRIAKIDES
Chesapeake, Dec. 22, 1995 by CNB