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Bank Bailout Cost May Double: The 1988...

From Times Staff and Wire Reports

Bank Bailout Cost May Double: The 1988 rescue of First RepublicBank Corp. of Dallas--the most expensive bank bailout ever--likely will cost double the original estimate of $2 billion to $3 billion, largely because of “preposterous tax breaks” for the company that bought First Republic, a congressional report said. The report, prepared by a House Budget Committee’s task force, said the bailout will cost the Federal Deposit Insurance Corp. between $4.7 billion and $6.7 billion. The report also criticized how the FDIC selected the winning bidder for another Texas banking giant, MCorp.


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