The Shadow Financial Regulatory Committee met in Washington recently to suggest a plan to resolve the financial problems of the Savings Association Insurance Fund. The plan contains the kernel of a good idea, despite its espousal of a couple of very bad ideas on bank capital and market value accounting.

The committee recommends that thrifts pay a one-time tax of $6 billion to retire the Fico bonds issued by the old Federal Savings and Loan Insurance Corp. The remaining $2.4 billion needed to pay off the Fico bonds would come from a 1-basis-point annual tax on bank and thrift deposits.

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