No End in Sight

Politicians hurl blame as the $500 billion S&L crisis races out of control

The dark portents came in rapid succession. First the Bush Administration angered friend and foe alike last week by admitting that it needs $100 billion much sooner than expected to continue its cleanup of the shattered savings and loan industry. Then tempers flared at a Senate probe of charges that the government turned over more than 200 failed thrifts to investors in 1988 in what amounted to sweetheart deals. Finally, the beleaguered Resolution Trust Corporation, which is managing the bailout, disclosed plans to dispose of 130 more thrifts and to sell $50 billion of seized assets by the end of the...