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Economy: Savings and Loan Bailouts #323578

CBS Evening News for Tuesday, Jan 10, 1989
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(Studio: Dan Rather) Report introduced.

(DC: Bob Schieffer) Bipartisan Congress committee reported expressing outrage with regard to Federal Home Loan Bank Bd.'s bailout of failing savings and loan insts. [Representatives Jim LEACH, Charles SCHUMER - comment on amount of money used to help S&Ls.] [FHLBB chairperson M. Danny WALL - defends agency's actions.] [Reagan admin. economy advisor Beryl SPRINKEL - proposes cutback in amount of federal insurance on deposits.] [SCHUMER - comments on proposal.] Treasury Secretary Nicholas Brady's retraction of idea quoted on screen. [Representative Stan PARRIS - comments.] S&L problem noted at critical stage.

(Studio: Ray Brady) Impact of government aid to S&Ls upon taxpayers examined. [Ind. consultant Lowell BRYAN - comments.] Ford Motor Corporation noted acquiring thrifts; amount of resulting tax breaks given. [Thrift analyst Stan STRACHAN - comments on tax breaks.] Ronald Perelman, chairperson of Revlon Company, reported acquiring First Texas and other thrifts; details given of tax-free profits made from deal. [BRYAN - says Revlon and Ford are in no-lose situation.] Criticism of government regulation of transactions noted. [STRACHAN - says ultimately, taxpayers pick up tab.] Both Congress and administration noted sharing blame for crisis.

Reporter(s):
Brady, Ray;
Rather, DAn;
Schieffer, Bob
Duration:
00:04:50

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