Savings institution depositors withdrew more money from...

Savings institution depositors withdrew more money from their accounts than they deposited in May for the first time in seven months, while losses continued to erode the ailing industry’s capital, the government said. The Federal Home Loan Bank Board said net withdrawals at the 3,102 federally insured S&Ls; totaled $941 million in May. But, the decline came after seven consecutive months of net deposit gains adding up to $28 billion. James Barth, chief economist at the bank board, said there was no obvious explanation for the May deposit drain, but he noted that commercial banks and money market mutual funds experienced a similar decline.