Page 6/The Battalion/Friday, August 12, 1988
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World and Nation
FDIC chairman defends merger
that created troubled Dallas bank
WASHINGTON (AP) — The
condition of First RepublicBank
Corp. of Dallas was “clearly worse
than any one of us knew” when fed
eral regulators created the bank by
merging two troubled Texas banks,
the chairman of the Federal Deposit
Insurance Corp. testified Thursday.
Thirteen months after the merger
of InterFirst Corp. and Repubic-
Bank Corp., the FDIC took over
First Republic in what may be the
largest federal bank rescue ever.
The FDIC is advancing $4 billion
to help NCNB Corp. of Charlotte,
N.C., acquire the bank. The North
Carolina company has agreed to pay
$210 million to $240 million to ac
quire a 20 percent stake in NCNB
Texas National Bank.
For five years it will have an op
tion to buy the remaining 80 percent
from the FDIC.
FDIC Chairman L. William Seid-
man estimates the goverment may
recoup some of the $4 billion for a
total hit of $2 billion to $3 billion,
which would still be more than the
$1.7 billion the FDIC does not ex
pect to recover from its 1984 bailout
of Continental Illinois Bank & Trust
Co. of Chicago.
In a hearing before the Senate
Banking Committee, Seidman said
regulators knew the two Dallas
banks were in trouble but could not
foresee that conditions would
change “rapidly and adversely after
the merger took place.”
Although regulators knew both
banks were in trouble, Seidman said
officials believed the new institution
“had a reasonable chance to suc
ceed.”
Although the merger was to result
in an infusion of $200 million in new
capital and annual reductions of
$100 million in operating costs, “it
was not enough to overcome these
problems,” Seidman said. Without
the merger, the two banks “clearly
would have failed,” he said.
Banking Committee Chairman
William Proxmire, D-Wis., said audi
ting of the two banks before the
merger was “not sufficiently ad
equate.”
The Comptroller of the Curren
cy’s office handles those audits, and
spokesman Lee Cross said that al
though a formal examination was
not done before the merger, the
agency thoroughly reviewed the two
banks’ loan portfolios.
In a letter to the Federal Reserve,
which had final approval of the
merger, the Comptroller’s office
wrote in April 1987:
“Both InterFirst and Republic are
seriously troubled institutions as
confirmed by our recent on-site re
views. We believe that their future
viability depends on some form of
outside assistance or other trans
action such as the one proposed.
“In developing our recommenda
tion, we were mindful of the fact
that certain unresolved accounting
questions as well as lingering diffi
culties in the Texas economy may af
fect adversely some of the underly
ing financial projections in the
proposals, especially short-term
profitability.
“Also we are aware that the pro
posal is being viewed with some de
gree of skepticism by market fund
ing sources whose continued
support will be critical to the survival
of the combined instituion.
“These matters unquestionably
are clear threats to the ultimate suc
cess of the proposal.”
Cross said the letter was “notwhai
you call a ringing endorsement 1 ' of
the merger proposal.
She said officials believed the real
estate market in Texas was about to
turn around at the time of the
merger, but its failure to climb out of
recession hit the new bank hard.
Seidman said the FDIC had rec
ommended in favor of the merger.
Sen. Bob Graham, D-Fla., said he
understood that the Dallas branchof
the Federal Reserve had recom
mended against the merger as “im
prudent” but Seidman said he “did
not know that to be the case.”
Seidman said the FDIC may have
two more large bank failures on the
horizon, but would not identify the
banks, their locations or when a col
lapse might occur.
Critics crucify ‘Last Temptations’
Others say movie examines Christ’s struggle against sin
NEW YORK (AP) — He “was made like his
brethren in every respect,” Scripture says of Je
sus, “one who in every respect has been tempted
as we are, yet without sin.”
A new movie about that struggle against going
wrong, “The Last Temptation of Christ,” has
roused some Christians to the battlements.
They say it’s scandalous, a shameful degrading
of Jesus. Others say it examines a valid question
about his humanity, but fumbles in doing so,
playing up shallow distractions.
“The question is not strenuously explored, but
it’s a thing theologians are grappling with today,”
says Robert E. A. Lee, head of the communica
tion commission of the Evangelical Lutheran
Church in America.
“Many believers seem to want to deny our
Lord’s humanity.”
However, his full manhood, including its
temptations, is affirmed in classic Christian doc
trine, along with his full divinity and unfailing
goodness. It’s seen as a profoundly mystifying
combination.
The movie is based on a nTvvel by Greek author
Nikos Kazantzakis.
Denunciations of the film have come from
fundamentalist Protestants, numerous Roman
Catholic bishops, the Greek Orthodox church
and various watchdog groups on the media.
It’s a “blasphemous evil attack on the church
and the cause of Christ,” says the Rev. Donald
Wildmon, a United Methodist who heads the
American Family Association. He says has con
tacted 170,000 pastors to boycott the film.
Archbishop Theodore E. McCarrick of New
ark, N.J., said that “if this was an attempt to show
the human side of Christ’s struggle, the result
unfortunately is coarse and common.”
The office of Greek Orthodox Archbishop la-
kovos termed the film “strictly the fantasy of a
sick human imagination which seeks to exploit
human weaknesses and temptations . . . Cnrist
is both perfect God and perfect man.”
The flak also singed Jews, who are outraged
both by the implications by some fundamentalists
that Jews were resonsible and by the picketing of
the home of Lew Wasserman, who is Jewish,
head of MCA, owner of the film maker, Univer
sal Pictures.
Rabbi James Rudin, interreligious affairs di
rector of the American Jewish Committee, said
statements and demonstrations that “gratu
itously” link Jews to the film are “ugly calls to reli
gious bigotry.”
Roman Catholic Archbishop Roger M. Maho
ney of Los Angeles, a friend of Wasserman’s.also
denounced “the anti-Semitic implications that a
few voices have raised in this matter.”
Actually, the film represented the collabora
tive work of three Christians — the Greek Ortho
dox author of the novel, the Dutch Reformed
script writer Paul Schrader and the Roman Cath
olic director Martin Scorsese, who calls it “an af
firmation of faith.”
The Rev. Kathleen LaCamera, a United Meth
odist media critic, said her major complaint was
that the film fails in its central effort to show Je
sus’ humanity.
“I found the Jesus in the film to be remote.
The Jesus that you and I know is infinitely more
accessible.”
Evelyn Dukovic, a Catholic and head of Moral
ity in Media, which is urging a boycott, said “the
film is not only objectionable but extremely of
fensive to any believing Christian.”
The Rev. Robert L. Maddox, a Baptist and ex
ecutive director of Americans United for Separa
tion of Church and State, said the movie may of
fend “the person in the pew” but it “does have its
commendable points.”
Doctors: Drug combination
reduces heart attack deaths
NEW YORK (AP) — An aspirin
and a clot-dissolving drug given
within 24 hours of the onset of a
heart attack can dramatically reduce
deaths and should now be consid
ered standard treatment, doctors
said Thursday.
“I’ve never seen a trial that pro
duced results as striking as these
ones,” said Richard Peto, a re
searcher in a new study showing that
the drug combination can reduce
the death rate following heart at
tacks by 8 percent to 13 percent.
The treatment could save the lives
of 25,000 of the 500,000 Americans
who have heart attacks each year if
they all received it, Peto said. It costs
about $150 and can be done at any
community hospital or even by a
doctor outside a hospital, the re
searchers said.
Yet the word has not gotten out to
doctors, Peto said.
“At the moment, most patients in
the United States don’t have blood-
clot dissolving treatment of any
type,” he said.
Dr. Peter Sleight, chairman of the
study’s steering committee, said,
“Our object is to get the results of
this treatment widely known so peo
ple will get this treatment.”
Peto and other study participants
spoke at a news conference held in
London and New York in conjunc
tion with publication of the latest
findings in the forthcoming issue of
The Lancet, a British medical jour
nal. The results were widely publi
cized in March at a meeting of the
American College of Cardiology in
Atlanta.
The researchers studied 17,187
patients at 417 hospitals around the
world. Some patients were given as
pirin, and some the clot-dissolving
drug streptokinase. Another group
was given both, and a control group
was given neither.
The death rate up to five weeks
after a heart attack was 13 percent in
the untreated control group. It
dropped to about lO’/a percent in
the patients given either aspirin or
streptokinase, and it dropped to 8
percent in patients given both drugs,
Peto said.
Furthermore, the study showed
that the drugs reduced deaths in el
derly patients, who were previously
not thought suitable for clot-dissolv
ing treatment because doctors
thought it might increase their risk
of strokes, Peto said.
It also showed that the drugs were
helpful even if given as late as 24
hours after the onset of chest pains,
Peto said.
Streptokinase is derived from
streptococcus bacteria, which cause
strep throat. Most heart attacks are
caused by a clot blocking the coro
nary arteries, which provide a nou
rishing blood supply to the heart.
Streptokinase dissolves the clots
and aspirin helps to prevent the clot
ting of blood cells called platelets,
thus helping to prevent reformation
of clots, the researchers said.
Dukakis lead receding, polls say
NEW YORK (AP) — Three national polls Thursday
said Gov. Michael Duakis’ post-convention surge has
crested, but they differed on the level of backing for
Vice President George Bush.
Two of the surveys found Dukakis retaining a dou
ble-digit lead over his Republican rival, but the third
found enough Bush support to limit Dukakis to a bare
six-point advantage. A poll earlier this week found a
seven-point Dukakis lead.
Dukakis’ best showing in the new polls was a 14-point
lead in an NBC News-Wall Street Journal survey con
ducted Aug. 5-8. That was down from the 18-point Du
kakis lead it found the week after the Democratic con
vention.
Dukakis led by 12 points in a CNN-USA Today poll
also done Aug. 5-8.
In a Business Week poll done Aug. 4-9, his numerical
lead was only six points — statistically a dead heat be
cause of the three-point margin of error.
All three of the polls placed support for Dukakis in
the 50 percent range. It was their measures of backing
for Bush that varied, from a low of 36 percent in the
NBC-Journal poll to a high of 45 percent in the Busi
ness Week survey.
A Gallup poll released Tuesday fell within that
range, with 49 percent for Dukakis, 42 percent for
Bush. Two weeks ago it found Dukakis up by 17 points.
Analysts have said Dukakis’ 17- or 18-point advan
tage was a product of publicity from the Democratic
National Convention, which ended July 20, and was
sure to fade, particularly when the Republicans stage
their own convention next week.
Some expressed surprise at the Gallup poll’s sugges
tion that Dukakis lost 10 points even before the Repub
licans met, particularly since there had been no mo
mentous event to cause such a decline. As recently as
July 31-Aug. 3, a CBS News-New York Times poll
found Dukakis maintaining his lead of 17 points.
But the new Business Week poll found a similar drop
after putting Dukakis ahead by 18 following the con
vention. Overall the three polls Thursday gave a clear
indication that Dukakis’ post-convention bounce had
peaked. However, they also indicated that support for
Bush was, at least for the moment, unsettled.
All of the polls had sampling errors of plus or minus
three points.
Refguees say
captain caused
cannibalism
WASHINGTON (AP) — The
skipper of the USS Dubuque will
be relieved from command this
weekend pending an investiga
tion of charges the warship failed
to adequately assist a boatload of
Vietnamese refugees who later
reportedly resorted to canniba
lism to survive, officials said
Thursday.
The commander, Capt. Alex
ander G. Balian, 48, will be re
lieved Saturday by Capt. David
Wetherell, who left San Diego,
Calif., on Wednesday to fly to the
Persian Gulf, the Navy said.
The Dubuque, an amphibious
landing ship, encountered the
Vietnamese refugees in the South
China Sea while en route to the
gulf.
Howard and Navy officials
stressed that the captain’s reas
signment was considered admin
istrative and not punitive at this
point.
The Navy and the United Na
tions High Commission on Refu
gees are investigating reports of
murder and cannibalism that sur
faced earlier this week in a Phil
ippine newspaper. The Vietnam
ese boat people eventually were
rescued off the Philippines and
are in a refugee camp there.
The newspaper quoted survi
vors as saying they killed and ate
some of their fellow passengers to
stay alive after they encountered
the Dubuque on June 9.
Two of the victims reportedly
died of starvation, but three oth
ers allegedly were murdered
through drowning and then
eaten.
Some survivors charged the
Dubuque refused to take them
aboard even though their boat
was disabled and they were dying
of exposure and starvation. In
stead, the ship gave them food
and water, the survivors said.
The Navy said earlier this week
that when the Dubuque chanced
upon the refugees, their boat
“was judged to be in seaworthy
condition and was under sail.”