Wednesday, January 13, 1988A'he Battalion/Page 5
right: S&Ls use insurance funds
r mergers creating giant thrifts
talionj
m be|
iatex |a.LLAS (AP) — Regulators are
lid A, I! savings and loan insurance
azineM to merge small community in-
onsu-Bons and create giant thrifts,
nationBHouse Speaker Jim Wright,
|| Badded he would oppose future
ursts for bailout money if the
nd continues.
| Rud-P believe I can see a conscious
temment policy to concentrate
;h in fewer and fewer hands,”
hi, D-Fort Worth, told the Dal-
\'imes Herald in an interview
blished Tuesday. “That’s not
ica.” '
ight last year supported a bill
nil pump $10.8 billion into the
ipg Federal Savings and Loan In-
rance Corp. But he wanted Con-
to impose restrictions on regu-
t fc r s and the Reagan
j* ■nistration to assure a manage-
I ?n[ shakeup at the agency.
| Bxas’ 281 savings and loans lost
rrarm T2 billion in the first 10 months
techni®87, Federal Home Loan Bank
"hes.fiffals said. Industry experts esti-
u deal u i il 131 ^50 billion in extra funds
we ivflBiately will be needed to com-
the :t a thrift industry cleanup,
resoujowever, Wright said regulators
o cours 1151 a g°od job with the money
ataki, e y ' e g° l before he will consider
nto: qicsts for additional funds.
- e u T not eagei to turn enormous
ioi tits of money over to (regula-
e Sena; t |
Court indicts former bonk officer for fraud
HOUSTON (AP) — The former
chief executive officer of a minority-
owned bank could be fined up to
SI 0.5 million if convicted of charges
that he defrauded the failed institu
tion of more than $675,000.
James H. Means, formerly with
Rherside National Bank, was named
in a 42-count indictment returned
Monday by a federal grand jury. He
is accused of obtaining bank funds
for two companies that had received
loans over the amount allowed for
single borrowers.
Assistant U.S. Attorney John
Smith said Means was not in custody.
Means faces up to 210 years in
prison in addition to the fines if con
victed of one count of divising a
scheme to defraud, two counts of
misapplication of bank funds and 39
counts of making a false entry.
The bank has not recovered the
$675,811 that went to M.R. Concrete
and Marie Richards Construction
Co. in 1983 and 1984, Smith said.
The indictment accuses Means of
issuing letters of credit to the two
companies and making a $280,000
loan to Marie Richards Construction
without authorization from River
side National's directors.
The indictment contends Means
also gave the companies portions of
loans made to other people or busi
nesses and embezzled money from
dormant bank accounts to pay the
companies’ bills.
M.R. Concrete, which was formed
by Marvin Richards in 1978, filed
for bankruptcy protection in Octo
ber 1982.
Only Means was charged in the
case, but federal prosecutors are
evaluating evidence involving the
companies, Smith said.
Neither Smith nor Assistant U.S.
Attorney Scott Woodward knows of
any connection between Means and
the two companies.
Riverside National, Houston’s
first minority-owned bank, was de
clared insolvent in August 1985 af
ter federal regulators said loan losses
had exhausted the bank’s capital.
Riverside National had about $16.3
million in deposits at that time.
tors) bent on foreclosing and driving
people out of business,” he said.
Wright said it is better to give reg
ulators enough money to close the
most troubled institutions and give
other ailing savings and loans “a
chance to save themselves.”
Texas officials are awaiting a plan
from the FHLB Board to rescue the
badly battered thrift industry. Some
observers say the plan would involve
merger of several small troubled in
stitutions w'ith a healthy thrift, cre
ating a much larger savings and
loan.
Wright came under fire last year
after Edwin Gray, former FHLB
board chairman, said he was angry
that Weight asked regulators to de
lay closing Addison-based Vernon
Savings and Loan Association.
Late last year, the FSLIC used
$1.3 billion in cash and notes to close
Vernon. Don Dixon, former owner
of the thrift, is fighting an FSLIC
lawsuit charging him and other for
mer officers with “looting? the insti
tution.
1 am not ashamed of what I have
done,” Wright said of his ef forts on
behalf of Vernon and other Texas
thrifts and borrowers.
u the
>olice soy deaths result of murder-suicide
11 I* (MlALLEN ( AP) — An autopsy
to eittermined that a man, woman and
-S or (ifHjed from gunshot wounds in an
hat mijlBent murder-suicide, police said
‘gorv, esday.
W.ce on Monday morning found
the bodies of Maria Del Socorro
Carlo Linares, 44; her son, Omar Li
nares, 10; and Willis David Egger,
44, at a McAllen apartment.
Egger is believed to have shot the
woman and boy before turning the
.357-caliber pistol on himself,
according to an autopsy, a McAllen
Police Department spokesman said.
“It appears that he shot the
woman, shot her twice, and appar
ently shot the little boy twice and
then shot himself in the head,” Capt.
Gary Miller said.
The bodies were discovered by a
woman who intended to leave her
daughter in the woman’s care.
Trustees will open
Bishop College,
seek new funding
DALLA.S (AP) — Trustees for
Bishop College, faced with the
possibility of closing the school
for lack of money, decided Tues
day to open for the spring semes
ter as usual on Jan. 25.
“We are pursuing the avenues
to see to it that the school is pro
vided funding for the immediate
future and days beyond,” Board
Chairman William Shaw said af
ter a board meeting.
Shaw said some new funding
initiatives had developed in the
past few days for the predomi
nantly black, four-year private
school, but he would not disclose
sources of the new money.
“The effort we’re doing is not a
public appeal,” he said, adding he
could not be more specific about
where the money for the school
was originating.
The school now is embroiled in
a battle with the U.S. Department
of Education over $400,000 in
fall 1987 financial aid.
Interim President Levi Wat
kins said the school must know by
Friday w'hether its appeal to ob
tain the denied aid is successful.
If not,, the 106-year-old institu
tion may be forced to close, attor
neys have said.
Shaw' said Tuesday that even if
the department upheld its earlier
decision to withhold financial aid,
the school would not necessarily
close.
Watkins said the school is
pressing the department for a de
cision by Friday when Bishop’s
fall term ends. That’s because
rules require a college or univer
sity be certified to receive govern
ment financial aid during the
term for which the money is to be
applied, Watkins said.
Renewal of Bishop’s academic
accreditation was denied a year
ago because of financial prob
lems, some dating back to the late
1970s. The school subsequently
lost government financial aid and
support monies from the United
Negro College Fund.
The school filed for Chapter
11 bankruptcy reorganization in
April and began constructing a
plan to settle $12.5 million in
debts owed more than 400 cred
itors.
Bishop became eligible for cer
tification, a government requisite
to receive the funds, in late 1987
when three accredited institu
tions said they w'ould accept Bish
op’s academic credits from its
transferring students.
However, the education de
partment Dec. 23 refused to re
certify the school for the money,
saying Bishop w'as incapable of
administering an aid program.
Bishop’s attorneys appealed that
decision Jan. 6, contending the
department made the decision
based on past problems.
During the recent struggles for
support, the school’s enrollment
fell from 900 in fall 1986 to 301
last fall, Watkins said.
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