The Nation - News from June 18, 1989

The Federal Deposit Insurance Corp. expects to take over another 80 savings and loan institutions by the time any industry bailout is approved by Congress and possibly another 200 within two years, FDIC Chairman L. William Seidman said. The best current estimate of the cost of bailing out the troubled industry remains about $160 billion during the next 10 years, Seidman added in an interview on ABC-TV’s “Business World.” When asked how many more of the nation’s 2,900 S&Ls; he thinks will be affected, he said: “Well, I think that by the time the President’s bill is passed, we will have taken over about 300 savings and loans for restructuring, and I would guess that over the next two years, possibly another 200 will have to be taken over.”