European Stars and Stripes (Newspaper) - December 9, 1991, Darmstadt, Hesse                                Monday december 9, 1991 the stars and stripes b Page 17 _ Money matters a housing losses May reach $3.9 billion Gao study says by the Washington Post tee rising on a sliding scale to a maximum of not used a Good controls or practices Quot and Washington a losses in the fund $46,000 for Loans of More than $144,000, a has not taken some actions that could have today s tip Banks Likely will raise their fees on checking and savings accounts As a result of the 1991 banking Bill but Consumers at least will know More about the often hidden charges. The Bill passed by Congress last week and awaiting president Bush a signature allows the Federal Deposit insurance corp. To borrow $70 billion to protect depositors in failed Banks. At least $30 billion is to be repaid by collecting insurance premiums from Banks. Industry analysts and Bankers say the struggling banking business will have to turn to customers to help pay the added  rates London up fridays rates for the . Dollar to other currencies. Figures Are expressed in dollars to the British Pound other local currencies in dollars Gold was quoted at $367.75 an ounce Silver at $4.08. Dec. 5 dec. 6 British pound.1 7930 1.8100 German mark.1.5915 1.5730 French franc.5.4545 5.4265 dutch guilder.1.7895 1.7870 belgian franc.32.89 32.42 italian lira.1.206.70 1,201.25 Swiss franc.1.4150 1.3882 greekdrachma.182.00 181.15 turkish lira.5,033.70 5,026.90 saudi arabian riyal.3.7493 3.7493 Spanish peseta.102.11 101.52 portuguese escudo.141.15 140.63 Canadian dollar.1.1357 1.1378 austrian schilling.11.2260 11.1590 norwegian krone.6.2880 6.2480 danish krone.6.2025 6.1710 these Are commercial rates and can be related Only to the use of foreign currency by . Forces for official business. The Only official rate concerns the Sale of German Marks to . Personnel for personal use and this will be 1.53 through monday based on fridays noontime Price  bringing big Christmas to manufacturer Cleveland up the recession appears to have bypassed Lincoln electric co., where employees earned Christmas bonuses this year averaging $17,935, company officials said saturday. The company a leading manufacturer of welding products Industrial electric motors and Thermal cutting products said More than $48 million in discretionary bonuses will be paid to 2,694 employees. George e. Willis chairman of the Board and chief executive officer said the Bonus was the fifth highest in the 58 consecutive years that a Bonus has been earned. Willis said the Bonus would be paid despite the economic recession plaguing the United states and other world economies because of Lincoln so remarkable performance in 1991. Willis said the Bonus can be paid Only when earned and while the company a excellent profitability record continues. Willis said he Felt the product demand for the next year would remain consistent but not Strong. He said Market share must be increased through maintaining Quality while working even More strongly on Cost reduction and improved productivity. By the Washington Post Washington a losses in the fund that helps military veterans buy Homes could Cost taxpayers up to $3.9 billion Over the next five years the general accounting office has concluded. Mortgage defaults Are expected to account for nearly two thirds or $2.7 billion in losses expected on Loans that were made to veterans during the years 1986 through 1989, the Agency said. Other operating expenses would account for the remaining $ 1.2 billion. The Gao in its recent report said most of the Money to cover these losses will have to come from congressional appropriations because loan fees charged by the department will cover a Only a Small portion of the Cost. The new projected costs Are in addition to another $3.6 billion Congress has appropriated since 1984 to pay for earlier losses in the department of veterans affairs housing programs. Before 1984, the last time Congress had to provide Money to cover a losses was in the Early 1960s, a department official said. Widespread mortgage defaults during the late 1980s in areas hit hard by the recession accounted for much of the loss during the years covered by the report. The a helps veterans buy Homes by guaranteeing partial payment of the Loans made by private Banks and other lenders if veterans default. The government backs a portion of veterans Loans with the Guaran tee rising on a sliding scale to a maximum of $46,000 for Loans of More than $144,000, according to the report. The a also lends Money directly to veterans but the number of such Loans has declined sharply since the departments recent decision to limit them to severely disabled former service members the Gao said. Sen. Alan Cranston d-calif., chairman of the Senate veterans affairs committee said the governments losses on loan guarantees a Are the costs to the government of providing this Benefit to those who served the  Cranston said he has a worked hard to reduce the costs of the program and will a continue that Effort in 1992.�?� the Gao a report said the a could significantly Cut its losses by following the advice of the departments inspector general and the Gao. In the past this advice has pinpointed a significant problems in managing the loan guarantee program according to the Agency. A december 1989 report by the Gao said the a could save Between $42 million and $94 million by using less costly options than foreclosure that would have allowed some veterans to keep their Homes. The departments inspector general also has issued a Many audit reports recommending improvements that could result in savings of $287 million the Gao said Jeff Steinhoff director of the Gao a civil audits accounting and financial management division said the a often has not used a Good controls or practices Quot and has not taken some actions that could have Cut losses in its loan programs Keith Pedigo director of the vans loan guarantee service said that a Long before Quot the inspector general and the Gao criticized the a a we were doing most of the things they recommended we should be  but he said Quot As a result of their reports we have increased our activity even  the department calculates that it a saved approximately $103 million in appropriated funds by actively telling veterans How to use alternatives to foreclosures during the fiscal year that ended last sept. 30, Pedigo said. The number of Loans guaranteed by the a dropped precipitously Between 1987, when More than 4/5,000 Loans were guaranteed by the department and 1989, when the figure totalled about 189,700 Loans. The 1986 and 1987 totals were unusual because interest rates dropped for the first time in nearly a decade setting off a wave of Homeowner refinancing Pedigo said. The Gao a report said that a considering the present unfavourable state of the Economy and in particular the housing Market a continuing decline in foreclosures is unlikely. But tenders have reported that the number of veterans who Are missing loan payments has increased in recent months which usually indicates a Rise in foreclosures in the future according to the Gao. Pan am creditors quickly sue Delta for reneging on reorganization plan by the new York times new York a a committee of pan american world airways creditors sued Delta air lines on Friday for backing away from a reorganization plan that might have saved the bankrupt airline from having to shut Down earlier in the week. The breach of contract suit which seeks $2.5 billion in damages was filed in Federal bankruptcy court in Manhattan where pan am sought chapter 11 Protection in january. The lawsuit contends that Delta agreed in August to finance a reorganization plan that would have allowed pan am to emerge from bankruptcy As a smaller Carrier serving latin America after the creditors made Clear they would otherwise support trans world airlines competing bid for the airline. Until then Delta had wanted to buy Only pan am a Northeast shuttle and european routes. Once Delta completed the two asset purchases and a once Twa and its com jetting offer had been disposed of Delta Egan to renege on these and other terms a the complaint said. The complaint also accuses Delta of failing to provide joint marketing support and other vital assistance it had promised in order to help Stem the operating losses at the troubled Carrier. And it accuses Delta of waiting until the last minute to announce its change of heart thereby depriving pan am a creditors of the Opportunity to devise an alternative plan. Pan am and its subsidiaries the complaint said a was a direct consequence of Delta a breach of contract have been caused to cease operations terminate their work Force Ana proceed to liquidate their  a the conduct of Delta continuously dragging its feet reneging on its obligations and purposely failing to commit was Mirta Pons left and Zoe Hir Schudd former pan am employees Check out forms they received at a Miami Center set up to Aid the airline s newly unemployed workers. Undertaken intentionally and without Good Faith and honesty in fact and was Adverse to the obligation inherent in All the agreements in this Case a the complaint said. By filing the suit Friday so soon after the airline shut Down the creditors advisers Are hoping to prevent Delta from using a debt of $115 million owed to it by pan am to buy any of pan am a remaining assets at an auction in bankruptcy court scheduled for this morning. The lawsuit specifically asks the court to Block any payments Delta would otherwise be owed. A i had to go Forward with this before the Sale on monday a Sai Leon Marcus a lawyer for the creditors committee who added that he would be willing to pursue the Case on contingency if that were the Only Way to do it. A otherwise Delta would be Able to bid using their note and pay no Cash and 1 wanted to Stop