Government Aid

Schorr’s column indicates that the FSLIC in connection with its supervisory transactions rescues stockholders of failed institutions. This simply is untrue. When the FSLIC arranges a merger or acquisition of a failed institution involving the payment of federal financial assistance, the shareholders of the insolvent party are wiped out--not rescued.

FREDERICK L. WEBBER

President

U.S. League of Savings Institutions

Washington, D.C.