BUSH SIGNS LAW PROVIDING NEW S&L BAILOUT FUNDS
President Bush signed legislation over the weekend providing an additional $30 billion to continue the savings-and-loan bailout. Without comment, the president quickly signed the compromise measure, sent to him by Congress at the end of last week.
The legislation provides another $30 billion for the Resolution Trust Corporation (RTC), the government agency created in 1989 to oversee the closing of failing thrifts. The RTC also makes payments to depositors whose money was insured by the government and oversees the sale of real estate and other assets held by the closed savings and loans.
The Bush administration asked for the $30 billion because the $50 billion the RTC was given in 1989 is nearly gone.
And because of the large number of failed thrifts, the RTC is expected to use up the latest infusion of $30 billion in the next several months and probably will have to ask Congress for an additional $50 billion in the fall.
The bill also contains an "affordable housing" provision that encourages the RTC to make modestly priced housing units it acquires available to low-income Americans.