WASHINGTON - Resolution Trust Corp. president Albert V. Casey urged the House leadership on Friday to pass legislation that would furnish $43 billion to finish the savings and, loan cleanup.
Mr. Casey said the lack of funds between April and October this year will add about 1 billion [dollar] to the cost of the cleanup - about $6 million [dollar] day.
Seen as Attempt to Aid Thrifts
In letters to House Speaker Thomas S. Foley of Washington and Republican leader, Robert H. Michel of Illinois, Mr. Casey said some members of Congress "appear" to be withholding their vote from the funding issue to delay seizures of insolvent thrifts in their states. "Time alone will not make bankrupt institutions healthy," he said.
RTC funds, which are used to sell assets of failed S&Ls and pay off depositors, ran out on April 1. "Holding funding hostage only punishes the taxpayers," Mr. Casey said.
"Funding the RTC is not a discretionary item," he wrote. "We are fulfilling a pledge made 59 years ago, when the deposit insurance system was created."