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TIME: Almanac 1990
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1990 Time Magazine Compact Almanac, The (1991)(Time).iso
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time
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081489
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08148900.007
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1990-09-17
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BUSINESS, Page 55Business NotesBAILOUTSMidnight Budgetry
Eager to flee Washington last week for a monthlong recess,
Congress worked well past its deadline, arguing over how to finance
a ten-year, $166 billion federal rescue plan for more than 500
insolvent savings and loans. The busted thrifts are losing about
$20 million a day. When a compromise with the White House
threatened to unravel Friday, it looked as if the lawmakers would
leave town without solving the problem.
House leaders wanted to charge the $50 billion first-year cost
of the program to the federal budget. President Bush had threatened
to veto the legislation unless Congress agreed to keep most of the
outlay off budget, a plan that Nebraska Senator James Exon called
a "continuing grand scheme to fool the American taxpayer (about)
the real cost of the bailout." Near midnight on Friday, Congress
approved a compromise worked out with the White House in which only
$20 billion of the program's costs will be charged to the budget.
The Government will issue special 30-year bonds to raise the rest.
President Bush is expected to sign the legislation this week.