FSLIC Insolvent, but Bank Board Gives Assurances
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WASHINGTON — Lawrence J. White, a member of the Federal Home Loan Bank Board, offered assurances to savings and loan association customers Monday that “no one will ever lose a dime” in insured deposits, even though the federal insurance fund is insolvent by $11.6 billion.
The excess of liabilities over assets in the Federal Savings and Loan Insurance Corp. at the end of 1987 rose sharply from $6.3 billion a year earlier, White disclosed at a news conference.
Deposit accounts up to $100,000 are insured, and this money is absolutely safe, White said, noting that he had advised his mother to keep her money in an S&L.;
White said the bank board would have $20 billion available during the next three years to deal with the problem of more than 500 financially ailing institutions.
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