S.F. Bank Board Changes Its Mind
From Staff and Wires
The Federal Home Loan Bank of San Francisco reversed itself and announced Tuesday that it will join other regional banks in a special program to provide emergency funds for S&Ls; suffering rapid withdrawals by nervous customers.
Worried about potential financial losses, the San Francisco bank’s directors originally refused to participate in the backup lending program.
It was the only one of 12 regional Federal Home Loan Banks that refused to participate.
Under the program, regional Federal Home Loan Banks, the Fed and the Treasury will jointly lend money to troubled thrifts in the case of a run on deposits.
