Y4. B22/3: 5. hig. 100-937

KENNETH A. MCLEAN, Staff Director

LAMAR SMITH, Republican Staff Director and Economist
PATRICK A. MULLOY, General Counsel

ROBERT A. JOHNSON, Chief Economist

STEVEN B. HARRIS, Staff Director, Subcommittee on Securities
GILLIAN GARCIA, Director of an Economic Analysis Group, GAO

George D. Gould, Under Secretary for Finance, U.S. Department of the Treas-

Respone to written questions of Senator Proxmire

Next administration must act quickly.

FCA loss

Prepared statement

Herbert M. Sandler, chairman of the board and chief executive officer, World

Savings and Loan Association, Oakland, CA..

State regulators

Response to written questions of Senator Proxmire

Gerald J. Levy, president, Guaranty Savings and Loan Association, Milwau-

kee, WI..

Question of growth..

Forbearance...

Prepared statement

Response to written questions of Senator Proxmire

283

Donald Shackelford, chairman, State Savings Bank, Columbus, OH

Curtail growth

Prepared statement

Response to written questions of Senator Proxmire

283

Panel discussion:

Taxpayer assistance.

The affordability question

Administration's position.....

Should healthy thrifts be allowed to leave the industry?

Resolution of cases by Bank Board.

Extent of the problem

Options for long-range resolution

Should Congress act before the end of the session?.

279

(III)

Jay Janis, chairman of the board, Gibralter Savings, Beverly Hills, CA

How the problem came about....

113

113

115

Richard T. Pratt, chairman, Merrill Lynch Mortgage Capital, Inc., New York,

NY....

124

Edwin J. Gray, president and chief operating officer, Chase Federal Bank,

Miami, FL.

158

How we arrived at this point.

158

Prepared statement

161

Excerpts of letters, speeches, and congressional testimony of FHLBB

Chairman Edwin J. Gray

170

Panel discussion:

Recommendations to attract new capital

274

FHLBB and FSLIC have legal authority to stop the problem.......

Remove incompetent management..

275

276

ADDITIONAL MATERIAL SUPPLIED FOR THE RECORD

Chronology of the FSLIC Recapitalization.

Article from The Economist, July 16, 1988, "FDIC-Banking on it."

Letter to Senator Proxmire, from the Office of Management and Budget,

dated, August 23, 1988

Statement of the Investment Company Institute.

313