WASHINGTON -- The Office of Thrift Supervision has issued an order postponing additional capital deductions for many thrifts with real estate investment subsidiaries.
OTS Director Timothy Ryan acted last Friday, a day after President Bush signed a housing authorization bill that gave Mr. Ryan discretion to postpone capital deductions.
As many as 300 thrifts could be affected. Excluded will be institutions with less than 2% capital - the "critically undercapitalized" group.
Thrifts have already been required to deduct 25% of their investment in real estate units from capital under a provision in the 1989 bailout law. An additional 15% deduction was to have been made this year. Now thrifts won't have to take another hit until 1994.
Thrifts that want to take advantage of the bill's extended phase-in of the capital deduction must submit an application to their OTS regional office by Dec. 1.