European Stars And Stripes (Newspaper) - February 25, 1989, Darmstadt, Hesse                                Saturday february 25, 1989 the stars and stripes Page 7 Bank purchases of a is May be easier says fed Washington a Federal Reserve boar chairman Alan Greenspan saying a separately regu lated Thrift Industry May not be needed in the future told Congress the fed will make it easier for Bank holding companies to buy troubled savings and Loans. Greenspan testifying thursday before the Senate Bank ing committee also said the Central Bank and the Treasury department have arranged to support the Federal Home loan Bank system in the event of runs on a is. Meanwhile the White House office of management and budget thursday released figures showing the government will spend $264.6 billion on so problem through the year 2018. It Breaks Down As follows $52.2 billion to meet commitments in the Rescue of 205 institutions last year $50 billion to shut Down 350 insolvent but still open a is $73.4 billion to take care of additional a is slip Ping into insolvency from 1991 through 2018 $89.2 billion in interest payments from 1989through 2018. Even though the outline shows continuing so fail ures in the next Century it assumes the so Industry will be basically healthy and will be paying More than enough Deposit insurance premiums to cover the losses. Greenspan s comments came As opposition to presi Dent Bush s 333-Page so proposal grew among Mem Bers of Congress. At a hearing of the House banking committee  Lehman d-calif., complained that Bush would give Banks preference in buying ups is an turn the oversight and regulation of the thrifts Over to Bank regulators. Rather than heal the wounds your plan May Actu ally put it out of its misery Lehman told Treasury Secretary Nicholas Brady. The Secretary denied any intention on our part to deliver up the so Industry to the banking  earlier Brady had said a is Are an important Parton the nation s commitment to affordable housing and that the administration plan assures the emergence Ofa healthy and Strong so  sen. Donald w. Riegle d-mich., chairman of the Senate banking committee said Brady s evaluation seems to conflict with comments by Greenspan who said the administration s proposal does not prejudge whether the Thrift Industry will  own judgment is that at the end of the Day thrifts will look a lot More like Banks than they Donow but there will still be thrifts Greenspan said. Ultimately it s going to be the markets that Are going to determine the banking Structure in this  specialized mortgage lenders will exist because they Are profitable. I Don t think it really matters what kind of institutional Structure we put around it he said. Sotl plan at a glance highlights of president Bush s proposal to Ball out the savings and loan Industry taxpayer Cost budget director Richard Daman said the bailout would Cost taxpayers $28.1 billion Over the first five years of the Rescue plan and a total of $39.9 billion Over 10 years. Bonds the government would Issue $50 billion in Bonds to finance the Cost of failed institutions. This Money would be in addition to $40 billion committed previously by regulators. Interest on the Bonds would be paid by raising premiums paid by Banks and thrifts for their Federal Deposit insurance. There would be no direct fee on depositors. Premiums the Deposit Premium paid by Banks would Rise from the current 83 cents per $1,000 of deposits to $1.20 in 1990 and $1.50 thereafter. The fee for a is now $2.08 per $1,000, will Rise to $2.30 from 1991 until 1994, when it will decline to $1.80. Odic the Federal Deposit insurance corp., which oversees the nation s 13,000 Banks would become the insurer for a is As Well but the insurance funds for the two industries would be kept separate. Insolvent thrifts a newly created Resolution Trust corp. Would be established to isolate insurance premiums per $1,000 in deposits d current proposed Banks i $.83 11.50 insolvent thrifts and resolve their affairs within five years. Joint supervision the Odic will team with the folic in a joint supervisory program with personnel from the Federal Reserve and office of the comptroller of the currency. Policing the Justice department would get $50 million More to attack fraud in the financial Industry. Federal regulators will be Given expanded enforcement authority. Civil penalties will be increased to fines of up to $1 million per Day and criminal penalties to 20 years or More in prison. Capitals is will be required to meet the same capital requirements As commercial Banks by june 1991. They will have to increase their capital to 6 percent of assets almost double the current requirement. Chicago Tribune graphic Hospital workers return to jobs in Rhode Island Cranston . A striking nurses and attendants at a state Hospital returned to work under court order thursday relieving National guardsmen who cared for patients Dur ing the four Day dispute. It s unfortunate that a strike had Totake place. All parties know that a strike by state employees is illegal in this state said Superior court judge Anto Nio s. Almeida. The guard was sent Home As nearly Al the striking employees reported to work thursday. The numbers Are Good. This reflects a Complete turnaround from the past couple of Days said James Ben edict Hospital director. Union workers walked out sunday night Over staffing Levels. The state try ing to Cut overtime has refused in some cases to Call in additional staff member when workers Are sick. Local 1350 of the american federation of state county and municipal employees represents 650 Hospital work ers. Nearly All honoured the strike. About 130 National guardsmen we recalled in to help care for the Hospital s 410 chronically ill patients. The Soldier spent much of their 12-hour shifts Bath ing feeding and dressing patients. I just want to get Back to work Backoo my regular Job As a pipe fitter said guard member Robert Johannes. I m tired said Mary Eckstein. Patients were relieved to see the employees returning although some enjoyed the change. It was sort of a break from the bore Dom of hospitals. Every Day is the same As the last especially for some of the shut ins said Dan Sherman 43, a patient for five months. Gov. Edward d. Diprete said wednesday that workers who failed to return thursday morning would be  claiming to be sick must provide a medical excuse officials said. As of seven o clock this morning the pickets were no longer present staffing at the general Hospital was within nor National guard to be used in . Fight against drugs Mal Levels. We believe the Union is actively encouraging workers to return to work state attorney John Breguet Saidat a hearing. Almeida ordered workers to return on wednesday. On thursday he said he was annoyed his order had been violate but would not impose sanctions. Union workers staged a four Day sick out that ended Jan. 31 when the Gover nor called out the National guard. Thomas Romeo director of the stat department of mental health retardation and hospitals said the state would try to recoup from the Union the Esti mated $249,000 spent on the guard the strike and the january sick out. Washington a the nation Al guard will soon join the War on drugs in the nation s capital guard official said thursday. The announcement came As mayor Marion Barry agreed to Send additional police officers to City neighbourhoods where the drug problem is the worst. District of Columbia National guard maj. Gen. Calvin Franklin said the Pentagon has Given preliminary approval to a $300,000 project that will allow guardsmen to Aid City officials in break ing up More than 80 open air drug markets that flourish in Washington. We have put together a detailed comprehensive drug operation and support plan in concert with the District police department that will help fight the drug problem said Franklin. It could involve the guard using Heli copters and night vision devices to assist in monitoring and detection of illegal  however no guardsmen will patrol the streets despite the wishes of some City Council members and Community activists to have them do so. Under the plan the guard will train Ity police to use infrared night viewing equipment sophisticated radar systems and other devices the police do not have. The partnership began in november after City police officials asked the guar to help fight the City s growing drug Trade. Police say 60 percent of last year s record 372 killings were  people have been killed in the District so far this year compared to52 at the same time last year. The plan must be approved by the departments of defense and Justice before the guard can Start providing equipment or expertise but guard officials say they expect approval and Hope to Start the program in the next 60 Days. Meanwhile Barry agreed to demand from a group of ministers that he assign 50 extra police officers to neighbourhood where the drug problem is worst. The ministers also gained a commit ment from the City Council that it would draft a Bill giving the mayor authority to declare a curfew in specific areas to pre vent teen age drug dealers from plying their Trade on neighbourhood Street Cor ners. But the ministers did not receive pledge from Barry to declare a state of emergency in any of the City s neighbor hoods. The City is also proceeding with plans to hire an additional 150 officers police sources confirmed. However police Union officials cautioned that these offi cers will Only replace others who Are re tiring and will not increase the number of police officers on the streets. Don f expect to Waist away if you Scarf smoking again Chicago a afraid to quit have a Large effect on risks for he smoking he cause inn might Oain hic act an tre egg because you might Gai weight a new study suggests you might do your figure a favor As Well As improve your health by kicking the habit. Smoking encourages fat to Settle around the Waist rather than the hips and fat buildup around the Waist disassociated with a higher likelihood of heart disease diabetes and Earl death said the study s authors. It s simply one More bad effect of cigarette smoking As if you needed one More bad effect said or. Reu bin Andres a co author of the study and clinical director of the National Institute on aging in Baltimore. Cigarette smokers generally weightless for their height than non smokers and typically gain weight if they quit the researchers acknowledged in their report in Friday s journal of the american medical association. But they looked at the ratio of Waist size to hip size in men and found that Waist sizes generally were larger in relation to hip size among smokers than non smokers. The differences in measurement for the two groups were Small but previous studies have indicated Small differences in Waist hip ratios can hav hear disease Andres said. The More smokers smoke the big Ger the ratio the researchers found in a study of 1,122 men Ages 19 to 102over the years 1960 to 1986. When subjects gave up smoking they gained an average of 5 pounds but the ratio of Waist size to hip size did not increase significantly and was Only one fifth of what might be expected the researchers said. Sex smokers who resumed smoking lost an average of 2.2 pounds but the ratio of Waist size to hip size in creased meaning there was a greater increase in Waist size. Andres said no data on smoking and body fat distribution is available for women but one can hypothesize that women will show the same sort of changes As men. He said it is unclear How smoking causes differences in fat distribution but cigarettes could affect hormones or could have their own drug like effect. If you Are fortunate enough to reshaped with the fat Down around the hips then you have a relatively Safe form of obesity Andres said in a Telephone interview thursday. You Are less Likely to have High cholesterol High blood pressure and