The Knoxville News-Sentinel du lieu suivant : Knoxville, Tennessee • 27

ww 'iW Friday May 20 1988 The Knoxville News-Sentinel C5 A St a w4 wr Senators renew US pledge to stand behind deposits- By DAVE SKIDMORE There absolutely no doubt the US Congress stands behind our deposit Insurance program 33 Sen WiBam Proxmire Banking CommMee chairmen i WASHINGTON Senators Thursday renewed the government's pledge to stand behind deposits in the nation's savings and loan institutions after a congressional agency reported the doubling of red ink in the federal insurance fund Wolf put the price tag as high as $64 trillion and growing Proxmire called that sum equivalent to percent of the national debt enormous However Sen Jake Gam of Utah the ranking Republican on the committee said the $64 billion estimate offered by Bert Ely an Alexandria Va analyst is ridiculous: "I don't want to minimize the problem but let1 not panic the American people and create a self-fulfilling prophecy Gam said "1 want to keep this in fond The bonds are being paid off through a special assessment on saving institutions Sen Donald Riegle Jr D-Mich considered the likely successor to Proxmire when the committee chairman retires next January said Congress should be ready to act again soon after the next president takes office He accused the Reagan administration of papering over the problem and added: clear we have a big problem here I think it's getting worse not Bank Board Chairman Danny Wall speaking with reporters outside the hearing room said it is too early to ten if FSLIC will need more money For now he said the bank board has $4 billion in cash on hand and enough additional money coming in over the next two years is absolutely no doubt the US Not one single federally $10C up to the $100000 lim Southwestern states hard hit by depressed real estate and oil markets That estimate does not include an additional 435 "barely solvent" institutions he sail The Federal Home Loan Bank Board which regulates 3120 federally insured institutions says the cost win be $218 billion but Wolf said that projection was based on some "extremely optimistic" assumptions Private analysts who testified after assets by $117 billion at the end of 1987 up from $13 billion a year earlier Furthermore he arid the money available to the insurance fimd $28 billion over the next 10 years "probably will not be adequate" to restore the health by closing or merging 505 institutions listed as insolvent Wolf estimated it would cost $30 billion to $35 billion to dean up the mess which is primarily centered in Congress stands behind our deposit insurance program" Banking Committee Chairman William Proxmire D-Wis said at a hearing by his paneL Frederick Wolf director of the accounting and financial management division of the General Accounting Office paid the liabilities of the Federal Savings gnd Loan Insurance Corp exceeded its i depositor it has lost one The GAO report cones just nine months after Congress authorized the sale of $10A trillion in bonds over three yean to bring in money to the insurance i Government control volatility in stock market lawmakers told I Wall Street ends 2-day losing streak By Associated Praia By Asaodated Piets I WASHINGTON Lawmak- NEW YORK Stocks barely broke a two-day losing streak Thursday in a partial recovery that traders attributed to bargain shopping and slightly eased tension over inflation erx on Thursday accused the authors of a White House report on financial markets of ignoring the Exchanges' wildly swerving behavior and the resulting flight of small investors from Wall Street i The top-level federal officials said The White House report has drawn criticism from lawmakers since its release Monday It was written by Gould Federal Reserve Board Chairman Alan Greenspan Securities and Exchange Commission Chairman David Ruder and Commodity Futures Trading Commission Chairwoman Wendy Gramm Greenspan said he agreed that volatility is an unfavorable condition He said it is because of modern communications that instan-transmit market and orders and the growth of pension funds that affect the market because of their sheer size "I see a realistic way to address that the Fed chairman said tle to soothe the average person who owns stocks "They are a prescription for benign neglect of our turbulent and volatile financial Markey said at a hearing by his paneL "That is a cure we can Treasury Undersecretary George Gould who headed the team that produced the study testified that regulatory changes could improve the "safety and but never put an end to volatility "If you could give me a world without a trade deficit without a domestic deficit with non-infla-tionary growth with low interest rates and throw in for good measure peace in the Mideast Fd suggest to you be less volatility in the Gould unchanged NYSE volume totaled 16516 million shares down from 20942 million shares in the previous session Nationwide consolidated volume in NYSE-listed issues including trading at regional exchanges and on the over-the-counter market totaled 190J6 million shares The NYSE index rose 050 to 143J1 Standard index of 400 industrials rose 121 to 29297 and 500-stock composite index rose 122 to 252J7 At the American Stock Exchange the market value index fen 1 to 29179 The NASDAQ composite index for the over-the-counter market closed at 36625 down 074 The Dow Jones average of 30 industrials which fell a total of 5654 points on Tuesday and Wednesday and dropped another 25 in early trading rebounded and finished up 763 to 195872 Broader market indicea were mixed Declining issues outnumbered advances by about 4-to-3 in nationwide trading of New York Stock Exchange-listed stocks with 843 down 640 up and 496 who conducted the study defended their recommendations and insisted that the economic forces responsible for the market volatility of recent months are beyond government control i Rep Edward Markey D-Mass chairman of the House telecommunications and finance subcommittee said the tecommendations are a to regulating the markets that would do lit Alan Greenspan I House bill requires full disclosure on home equity loans Learn more about our hair transplants and why we are so different from the rest DCCUMIVW HWCAMIT By Asaociatad Prwa such as the various repayment options with the application and before fees are required Current law allows lenders to withhold disclosures until the consumer is about to sign on the dotted line "The legislation is a maji against consumers being duped by misleading claims and falling into financial traps that could lead to loss of a St Germain said Committee Chairman Fernand St Germain D-1LL said the measure "contains the kind of disclosures that win enable a consumer to make a reasoned judgment with the fon understanding of what lice down the road" The legislation he said assures that the consumer wifi not be surprised by unilateral changes in terms after the contract is in force MOSOV ntmrvofic i WASHINGTON The House Banking Committee on Thursday unanimously approved legislation requiring lenders to make foil disclosure on home equity loans The bin also is designed to put an end to the use of unfair contract provirions and misleading advertisements it 588-3367 Lenders also would be required to ten the consumer about an fees which may charged in connection with the loan The bill requires banks and credit unions to disclose important information about the terms and conditions of the loan Briefs Knox firm gets Blount highway pact Chrysler seeks to improve profits without sacrificing market share From sun reports The contract for the construc NEW YORK Chrysler Corp is looking for ways to I improve profits on its auto business without sacrificing the market share it gained by holding down prices and offering I aggressive buyer incentives Chairman Lee lacocca fold L' shareholders Thursday "We are in a real dogfight in this market" lacocca said "We intend to price as aggressively as we have to Our goal is I market share We want all the ground we can Chrysler increased its share of the US vehicle market to 14J La mj! Anml Anhw Ml IM9P 1MI BfkiU I the end of from 13J percent a ago while tion of a section of the Pellisrippi has Parkway in Blount County percent at April year industry leader General Motors Corp continued tc 1 to lose market share: lire The No: 3 US automaker pushed up its share by keeping its I prices the lowest among the Big Three company and offering 1: "the biggest rebates and incentives the world has ever 1 lacocca said Insurance firm opens Knox office The Cigna Property and Casualty Companies has opened a new marketing office in Knoxville The office 308 Peters Road Suite 110 is headed by Thomas Lewis marketing vice president Lewis comes to the Knoxville office from Nashville marketing office where he was manager for the West Tennessee territory Cigna is one of the nation's largest providers of commercial property and casualty insurance packages and offers a broad range of personal insurance services: been awarded to a Knoxville firm state Department of Transportation officials said Thursday Renfro Construction Co submitted the low bid of approximately $27 million and is expected to begin work within one month officials said The project extends from north of Old Topside Road to Wrights Ferry Road a distance of nine-tenths of a mile This section is expected to be completed in early 1990 The section also win connect a new bridge over Fort Loudoun Lake between Knox and Blount counties: The bridge is expected to be completed this year The entire project is expected to be completed by 1991 or 1991 The parkway eventually win connect with Alcoa Highway in Blount County The department also is accepting bids on the rebuilding of five miles of state Highway 72 in Blount and Monroe counties The section of highway on the north side of Tellico Lake was closed when the lake was created Residents of the area say the loss of the roadway forces a long detour through Blount County The project extends the roadway from west of Hammontree Branch to Highway 129 and cans for construction of a new bridge over Four Mile Creek The estimated completion date is 1939 Teamsters accepting new contract WASHINGTON The Teamsters union announced Thursday that it was accepting a new contract with the trucking industry even though an overwhelming number of truckers voted against the pact The union said 64101 truckers voted to turn down the proposed three-year National Master Freight Agreement while 36782 supported the new proposaL Ridge firm TVA join forces on robot Remotec an Oak Ridge robotics manufacturer and TVA have joined to design construct and test a mobile robot capable of performing acoustic and video surveillance tasks The robot is expected to be able to lift and transport objects weighing up to 200 pounds It will be used for a variety of tasks and will have improved maneuverability in small areas and be better able to clear obstacles: 15000 umbrella strollers recalled By Aaaooated Preaa 24 nations OK work on farm rules PARIS A conference of leading industrial nations ended Thursday after the United States railed to persuade European governments to accept its proposal for ending public aid to farmers by the year 2000 However trade and finance ministers from the 24 members of the Organization for Economic Cooperation and Development aaid they would work together to reform global farm trading rules: Singer Co chief faces probe paper says WASHINGTON Some 15000 umbrella strollers with parts that may detach and pose a choking hazard are being recalled the Consumer Product Safety Commission said Thursday The strollers were made by Services Merchandse Coof Nashville and were sold in Service Merchandise stores in 1SS6 and 1937 officials said According to the commission the strollers model 1E01 PRT have 16 tube end plugs that can come loose and could then pose a chokmg hazard for smril children Tennessee residents skouk call I NEW YORK Flamboyant financier Paul Bilzeriaiv now chairman of Singer Cow is the target of major Securities and Exchange Commission and federal grand jury investigations for possibly violating a ttany of securities laws a published report Tbe Wall Street Journal said that document it obtained and interviews conducted with business associates show BJzenan Vl-J I -A -I 'V j41tNV- Vr.