House Panel OKs More for S&L; Bailout : Thrifts: It authorizes $20 billion. The Administration asked for $80 billion. The bill faces an uncertain fate.

A sharply divided House Banking Committee voted Wednesday to provide $20 billion in new funds for the savings and loan cleanup, but the controversial bill is headed for an uncertain fate on the House floor.

The measure was approved only 27 to 25. Few members are confident that it can survive challenges in the full House, where rebellious members already have rejected two major bank reform bills.

The Bush Administration had requested $80 billion in new funds for the Resolution Trust Corp., which takes control of insolvent S&Ls;, pays off their depositors and sells the remaining assets.

But the committee voted to approve just $20 billion. The remaining $60 billion would be provided on a pay-as-you-go basis, with the money coming from other government programs.

“The question is, ‘How do you assemble a majority for this on the House floor?’ ” Rep. Barney Frank (D-Mass.) asked after the vote. Another committee member, Rep. Jim Slattery (D-Kan.), said 125 to 150 House members oppose a bill that provides more money to the RTC.

Hoping to spur congressional action, the Administration warned that failure to pass an RTC funding bill would cost taxpayers $4 million a day because the agency has run out of money to close financially crippled thrifts.

“It’s a damn shame and a disgrace if the legislators go home without getting this thing done,” Deputy Treasury Secretary John Robson said. “Congress should be ashamed of itself” for its failure to finish work on the bank reform bill and on the RTC funding.

Despite the strong rhetoric, the Administration has apparently abandoned its fight to get broad new powers for banks, including the ability for them to move fully into the business of insurance and securities, and the right for them to expand across state lines.

It has signaled that it will accept a narrow banking bill that provides $70 billion in new borrowing authority for the deposit insurance fund, expected to run out of money by year’s end.

The full House will consider the limited bill today, and the Senate will also resume work on a narrow version of banking legislation.

In voting for RTC funding Wednesday, the House Banking Committee adopted an amendment that would permit regulators to postpone imposition of tough capital rules for thrift institutions with major real estate development subsidiaries.

This could benefit some important California thrifts, including HomeFed, Home Savings and First Nationwide, according to federal regulators. There are 342 thrifts with $4.3 billion in investments and loans to subsidiaries, but the biggest involvement is in California thrifts.