MORE FUNDING FOR S&L CLEANUP APPROVED
WASHINGTON — The Senate Banking Committee Tuesday narrowly approved $25 billion more to fund the cleanup of the savings and loan industry. But chances for approval of the bill by the full Senate appear slim.
Republicans tried unsuccessfully to stage a revolt against panel chairman Donald Riegle (D) of Michigan because he allowed Democrats to tack new conditions on the funding bill concerning how thrift regulators operate.
Riegle said the extra measures offered the best hope for winning sufficient votes for the bill before the Resolution Trust Corporation (RTC) runs out of money on April 1. The agency is charged with cleaning up failed savings and loans.
The conditions attached to the bill include a clause requiring regulators to disclose names of executives at failed thrifts and banks who got favorable loans.
Approval of the added funding would push RTC cleanup costs so far to $130 billion, excluding interest. Some analysts put final costs at $500 billion with interest.
In the House, meanwhile, attempts to push through an RTC funding bill without baggage is scarcely faring better.
The bills in both the House and Senate committees would give the agency another $25 billion through April 1993.
The Senate Banking panel's bill could reach the Senate floor today. If the House fails to make progress, it may take up the Senate version in time to meet the April 1 deadline.