BANKING & FINANCE - June 1, 1994

FDIC Joins Campaign to Limit Insider Profits on S&L; Stock: Under pressure from Congress, the Federal Deposit Insurance Corp. has joined the Office of Thrift Supervision in proposing rules aimed at limiting windfall profits for insiders when depositor-owned savings and loans, so-called mutual S&Ls;, offer stock to the public. The tougher rules are aimed at S&L; managers who reap excessive gains by setting the stock offering price well below the true value of the institution so that it rises rapidly after stock is sold to the public. Insiders have obtained big shares of stock subscriptions at low prices and, in some cases, huge compensation packages. The proposed rules would give depositors control over any decision to convert to stock ownership or to award compensation to managers.