European Stars and Stripes (Newspaper) - July 1, 1990, Darmstadt, Hesse                                V sunday july 1 v 1990 the stars and stripes Page Miami a amp a bailout costs $ 1.7 billion Rescue Price sets Washington apr the government of Friday eroded a three Ibsh 155-instirafion series of savings and loan rescues and closings with a record $l7 billion taxpayer bailout of cent St savings Bank of Miami. Regulators Are paying great Western financial corp. Of Beverly Hills Calif to take Over the 71 branches and $5,2 billion in deposits of Florida a largest Thrift institution. Entrust Marks the biggest bailout of it single Thrift so far. But it Likely will be topped when regulators find an acquirer for Charlesh Keating  Lincoln savings and loan association of Irvine Calif that Rescue could top $2 billion. A in All Friday the Resolution Trust corp., which was created 11 months ago _ to clean up the Thrift Industry sold 14 institutions and closed one at an estimated Cost of $3 billion. The Etc has spent $16 billion to resolve 155 failures since us chairman William Seidman launched Quot operation clean sweep at the end of March in response to complaints that the Agency was moving too slowly. Before april 1, it had resolved 52 failures at a Cost of $9 billion. The activity of the last three months is rivalled Only by the 75 deals completed in december 1988 by the rfcs predecessor the Federal Home loan Bank Board. When regulators seized cent St in february they blamed its failure on speculative investing including the Purchase Lif More than $ 1 billion in junk Bonds. Most of the Bonds were sold by the investment banking firm of Drexel Burnham Lambert which has since filed for chapter 11 bankruptcy Protection. They also cited the lavish spending of the institutions chairman Davidl. Paul who spent millions of dollars on a museum Quality Art collection kept at his Home a company yacht limousines a corporate Jet Ana Good plated toilets in the executive washrooms. A a Quot fraud squad of investigators also is examining the legality of $328,000 in political contributions by Paul. Great Western purchased about half of a entrust a $6.7 billion in assets with the right. To return them within three 1 months orgy. Tupi out to be Worth less than expected Quot the assets include Cash and investment Grade securities residential mortgages and consumer Loans. The Etc will keep the rest including the junk Bonds and try to sell them to other buyers in another major package of deals Security Pacific National Bank acquired Gibraltar savings of sit Valley Calif and an affiliated but separately chartered a amp a of the same name m Seattle Security Pacific gets $6.5 billion in do posits and control of six branches in Washington and about 80 in California. Separately great Western received an 18-Branch Florida subsidiary of the Washington a amp a. The estimated taxpayer Cost of the Gibraltar transactions totals $628 million. Despite the april june spree which included a one Day record of 26 sales and closings on june 22, the bulk of the Agen to Cyl a work remains to be done. With the failure of five More a amp is on Friday the Etc has 247 a amp is yet to sell or close. It expects at least that Many now in private hands to fail in coming months. A i think they be done a Good Job so far but they certainly have their work Cut out for them a said economist Paul Ectman of regional financial. Asso dates in West Chester a. Etc critics in Congress have complained that Sale of the a amp is is the rela Lively easy part of the bailout program. The Agency so far is keeping about 70 percent of the institutions assets usually sour Loans and distressed real estate. Far More difficult critics say. Will be Selling the assets y ,. A. _. A 1 a a i Quot i think this is an important first step but it has to be understood As modest in relationship to1 the totality of the problem a said rep. Jim Latch a Iowa a senior member of the House banking committee. A we still won t know the True depth of the problem until the real estate and loan assets Are sold Quot he said. Seidman has said the Etc expects to scale Back to resolving Between 50 and 70 institutions in the july sept Ember Quarter. Over the last week the Agency asked for bids on 73 institutions with assets of about $48 billion after that the corporation could to forced to suspends amp a sales for Lack of Money. The $50 billion that Congress allocated last summer to cover Thrift losses is running out. Congress and the administration Are considering a second bailout As part of negotiations Ori the 1991 budget. Era in Kenosha wis. Apr a towering smokestack crashed to the ground with curtain closing finality Friday As the City blasted away the last remnant of an Auto Plant that shut Down in 1988. The blast  Era and ushered in a new one. Once a factory town this Southeastern Wisconsin City of 77,000 has embarked on an economic revitalization Effort that has lured new business with development projects like a planned Muu million Dollar Marina along Lake Michigan. Hundreds of residents including some of the 5,500 Auto workers who lost their jobs gathered at the site of the once Mammoth Chrysler corp. Plant to witness the smokestack demolition. The explosion crumpled the 250-foot smokestack made of Stone Metal and Wood. Many cheered its departure from the local Skyline. Others were sorry to see it go. Quot i think it should have stayed up As a memorial. Its the last thing left Quot said Joel Hoholik 37, who worked at the Plant for 17 years. A tips Loo bad that Kenosha considers monuments  mayor Pat Moran said the smokestack needed to be removed to Clear the Way for future development. A the last Symbol of what had been will now be a memory in our past Quot Moran said. A the old symbols come Down and the new symbols of Kenosha a rebirth can be  for Many the destruction of the final smokestack at the old factory was seen As an emotional catharsis for a City stunned by the Plant closure. A i think its about time they got rid of it Quot said . Garcia 42. A what we need to do is develop the Lake front and this thing is the last to  Many in the crowd chanted a goodbye Chrysler and a american motors and Chrysler Are history Quot smokestack of Chrysler Assembly Plant collapses. Kenosha has erased Many of the bitter memories of the december 1988 closing of the Chrysler Plant formerly operated by american motors corp. A the Community a image is probably the by strips been in 100 years Quot said Ray Forgianni jr., a City planner a the closing was almost like a catalyst. The handwriting was on the Wall a the Economy needed to  other signs of rejuvenation include the $45 million Dairyland greyhound race track that opened this month and created 700 jobs and the construction of a food company warehouse and Navy research Center that will employ hundreds More. A John Bechler director of the Kenosha area development corp., said that since May 1989 about 15 manufacturing companies a bringing about 1,350 jobs to have either opened or announced plans to open in Kenosha. A but Hope for the future does no to help the thousands ousted from their jobs and those who retained jobs at another nearby Chrysler Plant but arc not paid As Well As before. For those who lost their jobs a it s a very sad Day a said Rudy Guzei president of United Auto workers local 72. Quot despite All their hoopla about economic development they Haven to begun to do anything to help the people who lost their  the Plant began producing cars at the Tum of the Century and was bought in 1917 by Nash motors which later became american motors. At its height in the Early 1960s, it employed More than 16,000 workers. Financially troubled american motors first threatened to close the Plant but sold it in 1987 to Chrysler which announced its closure in 4pnuary 1988. Chrysler still employs about 1,100 workers in Kenosha and provided a $25 million Trust fund to retrain displaced workers for other  politics can make familiar bedfellows Baltimore apr for months Maryland gop gubernatorial candidate William s. Shepard searched in vain for a running mate. So he asked his wife. He will name Lois Shepard As his lieutenant govenor candidate when he files for the race on monday. Shepard made his decision after months of being turned Down by prominent republicans unwilling to give up their current offices for what most consider to be a hopeless race to defeat incumbent democratic gov. William Donald Schaefer. The Baltimore Sun said that slate Republican leaders mounted a frantic Effort to change Shepard s mind suggesting that a husband and wife team would be regarded As frivolous. Sources said Shepard responded by threatening not to run at All. Shepard said he recognized his Choice was Quot a trifle  but he said a Given the importance of the Job i would rather put Forth a substantive person. Looking at lots candidacy on the merits people will conclude what 1 have concluded Quot mrs. Shepard has been a real estate agent in Potomac where she and her husband live a High school teacher a Reagan Bush Campaign worker and chairwoman of a voters group known As republicans abroad. She also served As director of the Institute of museum services a Federal Agency that awards Grants to the nations museums. She served four years until last oct. T. Schaefer who was greeted with the news when he returned from Europe thursday responded a Law wow come  then he added Quot thais very