Out Of Sight, Out of Mind

The S & L bailout looks bold, but it hides the full costs

With this bill's substantial funding, we will begin, here and now, to eliminate the ongoing losses of the insolvent firms . . . I'm proud to sign this monster." So said President Bush last week as he stamped into law his long-awaited and much debated savings-and-loan bailout bill. The legislation, / which will rescue ailing thrifts at a cost estimated at $300 billion over the next 30 years, promises to transform the S & L business into a far smaller -- and potentially stronger -- industry. The law will also impose a sweeping reorganization on the Government's thrift regulators: the Federal...

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