SAVINGS INSTITUTIONS: Callin' 'Em Like He Sees 'Em

Callin' 'Em Like He Sees 'Em

It takes less than usual to spark testiness in Texas these days, especially on the subject of the state's beleaguered savings and loan industry. Last week Governor Bill Clements got into a shooting match when he described the Government's system for regulating thrift institutions as an "absolute fraud." Concerned that U.S. funds are insufficient to protect deposits at Texas' 49 insolvent thrifts, Clements contended that the Federal Savings and Loan Insurance Corporation might be able to reimburse depositors in failed institutions to the tune of only 30 cents on the dollar, along with a Government IOU for the rest. The Governor's...