P.M. BRIEFING : S&L; Rescuers Seek More Money
The Resolution Trust Corp., the federal agency created to sell problem savings and loan institutions and their assets, said today it will need as much as $60 billion more for fiscal 1991 to cover losses from the troubled thrifts.
RTC Chairman L. William Seidman said the agency, if it continues its current pace of disposing of thrifts, will have used up virtually all of the $50 billion allocated by last year’s thrift bailout legislation to cover losses.
“Given the information we have today, it appears that the RTC will need a minimum of $50 billion of additional loss funds,” he said.
“Depending on economic conditions, we may need more,” Seidman added, quoting a high estimate of $60 billion.
When President Bush signed the savings and loan bailout legislation on Aug. 9, 1989, Administration officials had assured Congress that the $50 billion authorized by the bill would cover the program for at least three years.
But officials now say the RTC will run out of money by the end of this year unless Congress approves more.
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