SAVINGS AND LOANS: Offers They Can't Afford

Offers They Can't Afford

Just a week after President Bush unveiled his plan to bail out hundreds of insolvent savings and loans, some of them took a turn for the perverse by getting into a costly new interest-rate war. Houston's Commonwealth Savings cranked up the rates it pays on six-month "jumbo" certificates of deposit (typical size: $100,000) from 9.6% to a hefty 10.75%. In California, Pasadena's BancPlus Savings followed suit with a 10.5% six-month rate. One reason for the feverish run-up was the need for the thrifts to compensate depositors for the perceived risk of putting money in those S & Ls, despite the Government's...

Want the full story?

Subscribe Now

Subscribe
Subscribe

Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on TIME.com

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!