Congress left town last week without providing new money to deal with failed savings and loans, setting the stage for a high-stakes war of nerves when the legislative body returns in September.

By law, the Resolution Trust Corp. must stop taking in new conservatorships on Oct. 1. After that date, failed thrifts will be handled by the Savings Association Insurance Fund, which is essentially broke today.

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.