BANKING: The Biggest Bailout

BANKING The Biggest Bailout

Goldome: the name was as good as gold through most of the '80s, as the savings bank based in Buffalo rapidly amassed a menu of failing savings banks around the state, with the blessings of business-first federal regulators. But as the go-go years went-went, Goldome turned to dross. The bank inched back toward profitability during 1989, only to face stricter capital requirements from a savvier set of feds in the wake of the S&L crisis. The new rules of the game finally proved Goldome's undoing last week.

As word went around Buffalo that government representatives were booking local hotel rooms while...

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