Information on Thrift Fund Bailout Sought

WASHINGTON - Rep. Marge Roukema, chairman of House Banking's financial institutions subcommittee, is seeking more information about the government's plan to shore up the thrift fund.

In an Aug. 9 letter to Federal Deposit Insurance Corp. Chairman Ricki Helfer, the New Jersey Republican asked how many thrifts would become undercapitalized by the one-time fee levied on deposits to rebuild the insurance fund.

The Clinton administration, along with banking and thrift regulators, has proposed raising $6.1 billion for the Savings Association Insurance Fund by assessing an 85- to 90-basis-point fee on all thrift deposits as of March 31.

The government's plan also would require banks to pay about 75% of the annual interest due on Financing Corp. bonds. The total cost would amount to 2.5 cents per $100 of domestic deposits.

Rep. Roukema asked Ms. Helfer whether that 2.5 cents will be added to the new, lower insurance premium scheduled to take effect on Sept. 30. (The FDIC on Aug. 8 voted to cut the average insurance premium to 4.4 cents).

Rep. Roukema also asked what "procedural and operational obstacles" stand in the way of an immediate merger of the bank and thrift insurance funds.

Finally, the letter, which also was signed by the subcommittee's ranking Democrat, Rep. Bruce Vento of Minnesota, asks why the FDIC is seeking authority to rebate deposit insurance premiums. The lawmakers asked Ms. Helfer to respond by Aug. 19.

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