European Stars and Stripes (Newspaper) - August 25, 1991, Darmstadt, Hesse                                Sunday August 25, 1991 the stars and stripes a Page 15money matters Dollar watch shown below Are the highest Dollar Exchange rates for the week of aug. 18 aug. 24 compared with Dollar rates for the same period one year and five years  Pound one Pound would Cost you $1.63 German Mark one Dollar would buy you 1.82 19$ a military Exchange rate 2.07 1.55 Mambu Jinol mid Spanish peseta one Dollar would buy you 134 112 97 i 1991 l 1990 1986 a amp Dollar traders Lack consensus some Money experts Are predicting a Dollar downfall in the upcoming months. It May they say dip to 1.69 Marks in Germany or even 1.65 Marks. But there is no consensus on the dollars Outlook. Other economists believe the Dollar is headed for a slight rally that could find it trading at around 1.72 Marks. Mondays soviet coup inspired rally that sent the Greenback Over 1.80 Marks for the first time since july 17, however is Over. There was no Way it could remain at that level once soviet president Mikhail s. Gorbachev returned to Power. The Dollar had been bolstered by worries Over possible repercussions on the German Economy rippling from the soviet turmoil. Those fears have ceased. In fact the Mark gained in value on the heels of the latest soviet developments. The news that Germany might provide the soviet Union with financial Aid led to firmer interest rates which also is positive for the Mark. Fridays report on durable goods might help bring the Dollar up a bit. However reports on growing joblessness May bring it Down. The . Labor department reported that there were 430,000 applications for unemployment benefits in the week ending aug. 10. That was a jump of 22,000 from the previous period and much higher than most economists had expected. An increase in . Jobless claims reported thursday raised concerns about the strength of the . Economic recovery. But the Dollar got a boost Friday As the Commerce department reported new orders for big ticket manufactured goods jumped 10.7 percent to $129.9 billion in july for the biggest monthly increase in nearly 11 years. Military Exchange rates this weekend Are As follows in Germany one Dollar will buy 1.69 Marks and in the United kingdom one Pound will Cost $1.72. The stars and stripes Odic May need More Money within 60 Days Congress told Washington a the chairman of the House banking committee says Congress May need to act within 60 Days to replenish the nearly insolvent fund that insures Bank accounts up to $100,000. Rep. Henry b. Gonzalez a Texas sounded the alarm in a written statement Friday after the general accounting office reported the Bank insurance fund May be insolvent by years end. A Bill to Reform the banking system would provide the Federal Deposit insurance corp. Fund with new taxpayer backed borrowing authority for $70 billion a and a separate measure introduced by Gonzalez would do the same. Gonzalez said he will probably move on the separate measure without waiting for the comprehensive Bill because the fund is a perilously close to running out of Money. The Gao report suggested that a having new borrowing authority in place by the end of 1991 would help ensure that the fund has resources available to re solve problem  the Date the fund could become insolvent depends on the rate at which insolvent Banks Are identified and losses recognized according to the Gao Congress investigative Agency. While the fund a will Likely be insolvent by the end of 1991,�?� the Gao said it a should have sufficient Cash resources and borrowing authority available to cover its Cash needs through dec. 31, 1991.�?� Gonzalez said in a statement a while the Gao suggests that some Cash will be on hand by the end of the Calendar year it is becoming increasingly Clear that a delay in refunding the Bank insurance fund a is a big Gamble that will further erode the Public a Confidence in the financial and regulatory  the Gao also reported that the funds balance on dec. 31, 1990, previously reported As $8.2 billion by the Odic was overstated by at least $4.2 billion. The report said that the Odic agrees this adjustment represents needed additional reserves for losses incurred by insolvent Banks. An additional 34 Large Banks Are a More Likely than not to fail this year without capital infusion the Gao said. An additional 64 Large institutions could fail Over the next one to three years and a number of Small institutions also Are in trouble the report  addition to the insurance fund s problems the Gao said the Resolution Trust corp., which is handling the cleanup of failed financial institutions by sept. 30 could use up nearly All of the $80 billion it received from Congress. By years end. The costs will exceed funds now available by $8 billion the report said. The Etc is seeking an additional $80 billion. New Aid would have to be in place at the Etc by sept. 30 a to avoid additional costs resulting from delays in closing troubled thrifts Quot the Gao said. Odic spokeswoman Caryl austrian said the Agency had no immediate comment because it had not seen the Gao report. Scandal plagued brokerage firm removes its chief Legal officer new York apr Salomon  chief lawyer who Learned along with the firms top executives in april that Salomon made illegal bids in Treasury auctions was toppled by the scandal on Friday. Salomons interim chairman Warren e. Buffett the Well known investor now running the company asked Donald m. Feuerstein to resign which he did on Friday afternoon. A i fully understand or. Buffetti a request for my resignation and appreciate that the new management team at Salomon inc. Should have in my position an individual of their own choosing a Feuerstein said in a statement jointly released by him and Salomon. Salomon spokesman Robert f. Bakerjr. Declined comment on Buffetti a reason for removing Feuerstein. Attempts to reach Buffett by Telephone at his offices in Omaha neb., were not successful. The Salomon statement did not mention a successor. Baker said he could not elaborate beyond the statement. Feuerstein Salomons chief Legal officer was present when three Salomon executives having Learned of Treasury Market violations by the firm decided they should be reported to Federal regulators. But those officials who stepped Down earlier in the week did no to do this for months. Feuerstein becomes the fourth top executive toppled since sunday when Salomon directors accepted the resignations of John h. Gutfreund 62 chairman and chief executive of both Salomon inc. And the Parent Salomon Bros. Thomas w. Strauss 49, vice chairman of Salomon inc. And president of Salomon Bros. And John w. Meriwether 44, a vice chairman of Salomon Bros. The scandal also has led to Large customer defections and a ban by Federal regulators 011 some types of trading by Salomon in . Treasury auctions. At Treasury auctions the government Sells Bonds Bills and notes to finance the National debt. Four Federal agencies Are conducting criminal and civil investigations into actions by the brokerage firm. Salomon admits buying More than the Legal limit of securities in several Treasury auctions at times by submitting bids in the names of customers without their authorization. One of the agencies the securities and Exchange commission in also demanding information from the other 39 firms that buy securities directly from the government to see whether the wrongdoing is widespread. Orders for durable goods Post dramatic Rise of 10.7% in july Washington a orders to . Factories for durable goods shot up 10.7 percent in july the largest increase in nearly 11 years the government said Friday. The gain following a 1.0 percent drop the previous month illustrated the Economy a Choppy recovery. The Commerce department said orders for durable goods a usually expensive products expected to last More than three years a totalled a seasonally adjusted $129.9 billion up from $117.3 billion a month earlier. The jump was the largest since an 11.2 percent surge in december 1980. Still orders were $4.5 billion below the record $134.4 billion level reached in december 1988. The increase included a $7.3 billion gain in the transportation sector a aircraft orders represented 75 percent of the gain. But All major Industry groups posted gains in july except for lumber and Wood products. The orders decline in june which was revised upward from the initial 1.4 percent drop was one of several negative reports that preceded the Federal reserves reduction of Short term interest rates on aug. 6, a move seen As an attempt to stimulate economic growth. Orders for durable goods Are a key economic barometer of manufacturers production. An increase usually Means busier factories and More jobs. The Federal Reserve reported earlier that Industrial production Rose 0.5 percent in july its fourth straight Advance. And the labor department has reported that factory payrolls grew by 13,000 jobs in july after declining by 50,000 in june. Orders which had fallen during each of the first three months of 1991, ticked up 3.6 percent in april and 2.0 percent in May before dipping again in june. The july Advance pushed orders for the first seven months of the year up 1.0 percent above those of the same period in 1990. Unfilled orders Rose 1.4 percent to $500 billion the first Advance in five months. An increase in unfilled orders could portend economic growth. Shipments of durable goods advanced 0.4 percent to $122.8 billion the fourth consecutive increase alter live months of declines. Non defense capital goods orders excluding aircraft a often a gauge of business plans to expand and modernize a Rose 4.3 percent in june nearly erasing a 4.5 percent loss a month earlier. Defense orders jumped 17.1 percent to $9.7 billion following a 12.7 percent drop in june illustrating the volatility of this category. Excluding defense orders still Rose 10.3 percent