House Banking Panel Expands Board to Oversee S&L; Cleanup

The House Banking Committee today expanded the board that President Bush wants to oversee the cleanup of the savings and loan crisis to include Housing and Urban Development Secretary Jack Kemp and a private real estate specialist.

After earlier enacting much tougher capital standards than Bush originally wanted to impose on the thrift industry, the 51-member committee today provided for more Administration oversight of the $100-billion bailout.

The effort, which will involve the largest disposition of government-owned property since the Louisiana Purchase, will be entrusted to a new agency called the Resolution Trust Corp.

Bush had wanted a three-member board headed by Treasury Secretary Nicholas F. Brady and including Atty. Gen. Dick Thornburgh and Federal Reserve Chairman Alan Greenspan to run the Resolution Trust Corp. The Banking Committee expanded the board to include two more voting members, Kemp and a real estate expert to be selected; plus one non-voting member, L. William Seidman, chairman of the Federal Deposit Insurance Corp., who will be in charge of the day-to-day task of administering the cleanup.