The American Bankers Association, which opposes legislation to shore up the Savings Association Insurance Fund, has projected 1999 as the year when the fund's reserves will hit 1.25% of insured deposits - the amount required by law.

But at Tuesday's House Banking Committee hearing on SAIF, Federal Deposit Insurance Corp. Chairman Ricki Helfer, a leading backer of SAIF legislation, said the ABA made a mistake in its calculations. According to Ms. Helfer, without a rescue, the thrift fund won't hit 1.25% until 2001 or 2002.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.