BANKING & FINANCE - Sept. 12, 1995

S&L; Profits Up 16.4% for 2nd Quarter: The Office of Thrift Supervision said the industry earned $1.35 billion for the quarter ended in June, compared to $1.16 billion in the first three months of 1995 and $1.24 billion in the second quarter last year. OTS Acting Director Jonathan Fiechter said the rise underscores thrifts’ basic soundness in the aftermath of the massive five-year cleanup of the industry. But he said the recovery could be jeopardized if Congress does not approve a plan to shore up the fund that insures S&L; deposits. The Clinton Administration has proposed a plan to capitalize the fund by Jan. 1. In the second quarter, the OTS said, 95% of the 1,478 thrifts it regulates were well-capitalized and the number of troubled S&Ls; fell to 53 from 57 in the first quarter. Troubled assets fell to $9.9 billion, or 1.27% of total assets, down from 1.34%.