A default on Financing Corp. bonds could occur this year if deposits flee the Savings Association Insurance Fund too fast, according to the chairman of the Fico Directorate.

Banking regulators have predicted default payments could occur as early as 1997. But the Fico official, Dean M. Schultz, said Tuesday that default could come sooner if thrift fund deposit levels drop more quickly than regulators predict.

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.