European Stars and Stripes (Newspaper) - December 16, 1990, Darmstadt, Hesse Sunday december 1g. 1990 the stars and strikes. Rage .5report contends big bunks could Fai Washington a most of Hie nation s largest Banks ate teetering on the Brink of insolvency and tax Money must quickly be injected into the govern ment fund insuring deposits a congressional report due out monday warns Bank failure costs could total $63 billion in a severe recession it said. Even the mild downturn expected by most economists would leave the fund Short of Cash said the report which was written by three economists at the request of a congressional subcommittee. A this nation faces an almost unprecedented situation in having most of its largest Banks operating on a or conceivably Over a the Edge of insolvency a said the report prepared for the House banking subcommittee on financial institutions chaired by rep. T rank Annunzio Dell. The study was written by Robert a Litan of the Brookings institution a Washington based think tank James Barth of Auburn University and a Dan Brumbaugh of Stanford University. Barth and Brumbaugh Are former chief economists of the Federal Home loan Bank Board the regulatory Agency since dismantled a a of the savings and loan Industry a there is very Good evidence that the Bif Bank insurance fund is in the same position As folic Federal savings and loan insurance corp was in the mid-1980s a without sufficient re sources to pay for its expected caseload of failed depositories a a . The most important lesson of the sikh debacle they said was that allowing insolvent institutions open simply permits them to Gamble with insured deposits and run up larger losses. A it he key fact is that Many of these Banks not Only currently have weak balance sheets by any reasonable Standard but they Are also highly exposed to additional deterioration. From their Sig of cant involvement in High risk lending a the the banking system a Loans so toxic they can threaten even big Banks a they wrote larger Banks with assets of $100 million or More Are in a less favourable Posi Tion to absorb future losses than smaller Banks the report said. The larger batiks have set aside reserves covering Only so percent of their delinquent Loans while smaller Banks have reserves totalling 124 percent of delinquencies. The report is be released Public bearing monday. The report directly challenges Treasury Secretary Nicholas f. Brady who has declared Banks and savings ius Litu tons Quot As different As Chalk and cheese,1�?T and pledged that Bankers not taxpayers will pay to bailout Banks if necessary. Fd1c.chairman l. William Seidman has said the fund has enough Money to failures foreseen by the Agency into mid 1091. In v re it wet f capt David Wiggins and his wife Patty stand in front a flee couple s Home in Killeen Texas federa i fun rids being used to buy Dallas apr a flight surgeon who has been denied conscientious objector status is Honing his 2-week-old hunger strike will get him out of the army before he is due to be deployed to saudi Arabia next week / a a. A a a a a capt. David Wiggins says he has lost 17 of the 167 sounds he carried on his 5-foot-id-Inch Fram Belore he vegan subsisting on vitamins and water on nov. 30, Wiggins 28, said t thursday that he expects to be do need from fort Hood to the persian Gulf on monday i Haven to heard anything to change that belief from the army a he said. A my bags Are packed. Pm just waiting for a phone Call i guess,�?T1 he says he is philosophically opposed to War and Lias been trying to get out of the army since february. He began the fast after a Federal judge refused to overturn the army a ruling that he could not be discharged As a conscientious said he is not a Coward and does no to want out of to avoid being sent to the persian Gulf. Quot my purpose is to be discharged from the army because contributing to an organization whose sole Pur pose is killing is reprehensible to me a lie said. Wiggins said he first began to have doubts about the. Military while still a Cadet at West Point. He said the feelings became stronger after communist governments were toppled across Eastern Europe by peaceful Means last year. A a a a it ,. A a a a Quot War is not a necessary evil because non violent political change is possible a he said. He said he has offered to pay the government Back for his education at new York medical College if lie is released from service. \ he estimated he can go without food for about two More weeks before he becomes unable to work a Fean Only assume Arney officials Are Content to let me starve to the Point l am hospitalized a he said. A a a Jav via jul / Washington a Stanford uni Etsity is using Federal research funds to pay r Flowers in the University president s mansion and to refurbish a grand piano Gressional investigators said Friday and until two weeks ago the University As erroneously charging the government it a $184,000 in depreciation costs on a 72-Iot yacht several boats and some a met department equipment at Stanford. The Billings were uncovered by the Rusc subcommittee on. Oversight and instigation which is looking into possible universities of Federal research rant programs. The panel chaired by rep John Dingell �-mich., plans hearings on the subject. The subcommittee s findings prompted in office of naval research which Over is Federal research Grants to Stanford a Send a five november team to Stanford beginning monday the team will look to the University s Billing practices. _ _ the Federal government is paying i us in the piano refurbishment at the residence of Stanford president Donald Ken Nedy and $500 a month for Floral arrangements said the investigators. In addition Stanford had the government pay $800 for the installation of Cedar lining in a closet at Kennedy a residence i the University confirmed the Billings and said they we re under review Stanford receives More than $240 million annually in Federal research Grants about a third of it for overhead costs Lor buildings supplies and administrative. Services. The Money for the Edwers grand piano and Cedar lining in the close came out of the overhead. Two months ago Pingelly. Investigators asked Stanford officials whether they were charging the government for a University owned yacht. A the University initially denied to Ding Ellis subcommittee that any of the costs associated with the 72-foot yacht the Victoria were charged to the government after general accounting office investigators asked questions Stanford announced it had made a mistake and that depreciation on the yacht several other boats and some equipment purchases for the athletic department were being charged to overhead accounts for Federal research Grants. / a we were red-faced., with embarrassment a said Larry Horton Stanford associate vice president for Public affairs. The University will Correct the mistake depreciation charges wont be made and depreciation _ against the Federal government Horton said. The yacht and other boats had been donated to the University. A Federal guidelines May allow the overhead payments for the grand piano the Cedar lined closet and the Floral arrangements the congressional investigators said. It will depend on whether the costs pertain to research related activities such As symposiums conferences or seminars. The Gao is looking into the matter Dingell a investigative subcommittee in the mid-1980s delved into soaring overhead costs in Pentagon contracting. The subcommittee is looking at the same thing in government funded research in Academia. Where overhead rates have been rising. A. Sands of time inthe stars and stripes 40 years ago today it. Dec. 16, 1950 the , general Assembly went into a Christmas recess leaving the Settle mint of a cease fire in Korea to1 a three Man commission that was expected to Start work immediately. ,. 30 years ago today. V. Dec. 16, i960 the . Embassy in the luos capital of Vientiane was evacuated following direct hits by two artillery shells. An embassy spokesman said the building was still burning 20 years ago today. Dec. 16, 1970 a Secretary of defense Melvin Laird said he would go to Southeast Asia Early next month to View the military situation and to discuss future troop withdrawals. Quot. A irs ago dec. 16, 1980 a iranian president Abulhassan Bani Sadr blamed the United slates for the delay in freeing the 52 . Hostages and said Washington must be prepared to return All iranian wealth before the standoff could be resolved. A
