BANKING & FINANCE - Dec. 4, 1992
From Times Staff and Wire Reports
Few Bank Failures Expected Under Capital Rules: Just 20 banks with a total of $6 billion in assets will be subject to seizure when new capital rules kick in on Dec. 19, far fewer than originally expected. The estimate, which the Federal Deposit Insurance Corp. will formally announce next week, lays to rest any lingering suspicion that there will be a flurry of failures--a “December surprise”--once the rules take effect. The new projection reflects the fact that some severely undercapitalized banks have already been seized, while others, bolstered by low interest rates, have been able to pull themselves back from the brink.
