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Page 10
The Battalion
T uesday, January 29,19$
New budget predicts FDIC deficit
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WASHINGTON (AP) — The
Bush administration is projecting
that the government fund insuring
bank deposits will
run out of money
next year unless
banks shore it up
with billions of
dollars.
The forecast,
to be included in
the administra
tion’s budget due
out Feb. 4, is the
first official ac
knowledgment of
a possibility that Seidman
private economists have warned of
for months.
By Sept. 30, 1992, according to
the forecast, there will be a $4 billion
deficit in the Federal Deposit Insur
ance Corp.’s bank fund, which
stands behind $2.2 trillion in depos
its. By the end of 1995, the deficit
will be $22.5 billion, the Office of
Management and Budget said.
Those losses likely will occur even
if the FDIC in several months in
creases the insurance premium paid
by banks to 23 cents per $100 of de
posits, OMB projects. That’s an 18
percent increase over the current
19.5-cent premium and nearly dou
ble last year’s 12-cent premium.
The forecast was presented last
week to banking industry represen
tatives who are struggling to agree
on a mechanism for rebuilding the
fund, according to industry sources,
who spoke on condition of anonym
ity.
The Congressional Budget Office
is expected to present similar, or
even more pessimistic, findings to
the Senate Banking Committee on
Tuesday.
President Bush likely will mention
efforts to strengthen the fund in his
State of the Union speech Tuesday
night. It will be part of the adminis
tration’s larger proposal for the big
gest overhaul of the financial system
since the Depression.
However, Bush likely will not get
into the specifics of how the fund
will be recapitalized, other than to
assure taxpayers that they will not
have to pay for bank failures as they
have for the collapse of the S&L in
dustry.
The Treasury Department has
proposed that banks provide an ex
tra $5 billion a year for five years —
roughly an extra 20 cents per every
$100 in deposits.
The money would go into a
cial trust fund within the FDIC,
be spent in an “early intervent
program to strengthen weak bilij
before they fail. Bankers w
serve as trustees of the special Ml
giving them some say over hon
money is spent.
Staff members of bank tr4
groups, who are evaluating the ,
E osal at the request of the Treas
•epartment, agree that the Fft
should be shored up by their inc
try, rather than by taxpayers.
FDIC Chairman L. William Sc
man acknowledged different
among bankers but said he
mained hopeful they could
ironed out in additional meeti:
this week.
Bentsen: Medicare cuts would jeopardize hospitals
WASHINGTON (AP) — The Bush adminis
tration may try to slash Medicare spending by
$20 billion over the next five years, a move that
would jeopardize already struggling hospitals in
Texas and around the country, Sen. Lloyd Bent-
sen said Monday.
Bentsen, a Democrat whose home state of
Texas has led the country in the number of hos
pital failures since 1986, said about half of the
$20 billion would come at the expense of hospi
tals.
“Medicare cuts of the size we’re hearing about
would put severe strains on the ability of hospi
tals to cover rising medical costs,” Bentsen, chair
man of the Senate Finance Committee, said.
“I don’t see how they can propose another $20
billion cut when half our hospitals already lose
money each time they treat a Medicare patient,”
Bentsen told the American Hospital Association’s
annual meeting. “It’s obvious to me —and to
most of you — that a growing number of hospi-
Surrender
tals are simply not in a position to take another
hit.”
The Office of Management and Budget said it
would not comment on the 1992 budget pending
its release. Comment was not immediately avail
able from the Department of Health and Human
Services.
Ann Ward Rogers, spokeswoman for the
Texas Hospital Association, said the proposed
cuts could be trouble in Texas, which saw 16 hos
pitals collapse last year and now has 55 counties
— out of 254 — without a hospital.
“There are many rural hospitals struggling to
survive,” Rogers said. “Any additional cuts would
have a negative impact, and some hospitals won’t
be able to make it any longer and yes, they’ll
close.”
The average Texas hospital suffered a loss of
$970 on each Medicare patient last year, Bentsen
said. Such losses are projected to total $241 mil
lion in 1991 in Texas, Rogers said.
“Hospitals in every major metropolitan are;
Texas are incurring Medicare losses in the it
of millions of dollars,” she said.
Added Bentsen: “More than half of the hot:
tals in the country are losing money on Medic,
patients. The Texas Hospital Association e
mates that 70 percent of Texas hospitals arel
ing money on Medicare patients.”
Last year’s agreement to reduce the natic:
deficit by $500 billion over five years indudec
$45 billion cut to Medicare. As a result, hosp;:.
will receive $ 17 billion less over five years, inds
ing $ 1.85 billion t his year, Bentsen said.
Throughout the negotiations with Congtr
the Bush administration sought deeper Medic*
cuts, Bentsen said.
“But when it was all over I was under thetfc
impression that f urther cuts in Medicare wi
not going to be on the table this year," Beni-
said. “I thought we had a deal.”
continued from page 1 • Seminar addresses economic markets, effects
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If Iraqi forces fail to provide ne
cessities, such as food, ammunition,
leadership and communication, then
dissent can occur, Burk says.
Interdiction of these needs, how
ever, is not enough to produce sub
mission. The coalition also must
make the option of surrendering
seem safe from the Iraqi point of
view, Burk says.
Submission must be made to ap
pear culturally acceptable to the
Iraqi soldiers, he says. Iraqi troops
must believe their capitulation is not
a denial of soldierly virtue and that it
is honorable, Burk says.
The allies also have to relieve the
anxieties of the Iraqis. They must be
assured that prisoners of war will not
be tortured or otherwise mistreated,
he says.
The decision to put Arab coalition
soldiers in charge of POWs and on
the front lines has helped, Burk says.
While ordinary units might be
willing to yield to allied forces, Iraq’s
elite Republican Guard will act dif
ferently, he says.
“They (The Republican Guard)
are likely to be harder to disrupt
than conscripts,” Burk says. “I don’t
think they are likely to surrender on
the basis of air attacks alone, unfor
tunately.”
He says the Republican Guard has
a higher level of training than the
regular Iraqi army. Burk says they
also have a higher commitment to
their roles.
Their greater morale results from
the higher expectations they have
for themselves. The fear of letting
others down makes them less in
clined to capitulate, Burk says.
“The more we expect of our
selves, the more we get out,” he says.
Burk says Iraq’s use of Scud mis
siles against Israel and Saudi Arabia
is not effective at present levels and
will probably shore up coalition re
solve.
“People who are bombed tend to
stiffen resistance against their ene
my,” he says.
However, Burk says if Israel en
ters the war against Iraq, it probably
will lower the morale of Arab coali
tion soldiers.
In addition, more dramatic effects
would be felt in the civilian popula
tions of nations such as Egypt, Syria
and Jordan, he says.
The longer the war lasts, the more
destablizing it becomes to the coali
tion, Burk says. Israeli participation
in the war would accelerate and in
tensify the process of opposition in
the allied Arab countries, he says.
Burk says Iraq’s policy of terrorist
attacks outside the combat zone is
wrong, as well as ineffectual,
i “Targeting civilian populations is
immoral,” he says. “I know of no jus
tification for it.”
If terrorism became more effec
tive, it could prolong the war, Burk
predicts. Should terrorists cause
heavy casualties in Europe or else
where, the coalition might expand
military operations in Iraq beyond
the liberation of Kuwait, he says.
Continued from page 1
as far away as Illinois and Minnesota
to attend the conference.
“Originally, we planned to have
the conference for students in the
Southwest, but this year, we had stu
dents from other states,” she said.
The third annual conference
could not have been a success with
out help from committee members
and advisers, Warmly said.
“Kevin Carreathers (director of
the multicultural services depart
ment) was an inspiration to our pro
gram, as well as Felicia James,”
Warmly said. “We couldn’t have
done it without them.”
Warmly said she believed the con
ference was a success, but she will be
glad to focus more on her studies af
ter dedicating so much time plan
ning the conference.
“If I was to be here next year,
then how I would get involved in the
conference is to just attend and en
joy it,” she said.
Patriots knock out Scuds
RIYADH, Saudi Arabia (AP) —
Patriot missiles turned back an Iraqi
Scud missile attack on the Saudi cap
ital late Monday, witnesses reported.
Sirens began'wailing just after 9
p.m. (midnight GST) warning of a
missile attack. Patriot missiles were
fired shortly thereafter.
The Texas A&M student chapter
of the Society for Human Resource
Management is sponsoring a semi
nar on the changing work force
starting at 11 a.m. today in 114
Blocker.
Speakers will address issues such
as the changing European and Japa
nese economic markets and their ef-
Radio. Continued from 1
to contact.”
When normal routes of commu
nication become useless because of
wars or natural disasters, the club
usually sends radio messages to
gather information about the situa
tion. Amateur radio operators also
transmit following tornadoes and
hurricanes.
After Hurricane Hugo struck sev
eral Caribbean islands and South At
lantic states in 1989, the club helped
A&M students locate families living
in the area.
So far, no one with family in the
Persian Gulf region has requested
help.
Language barriers usually do not
pose any problems because most ra
dio operators speak English.
Riyadh, Saudi Arabia, has a small
station even though the Saudi gov
ernment is relatively protective,
Maves says.
When someone calls and requests
information about a disaster, they
are asked for the name, address and
phone number of the person being
contacted, as well as their own phone
number.
The radio operator then contacts
another operator in that area using
public airwaves, and asks them to
find out about the person being
sought.
Because “ham” operators use
public airwaves, the calls are inex
pensive.
When and if the operator is able
to find the necessary information, he
calls the operator at A&M who con
tacts the original person placing the
request.
The A&M club operates one of
the largest stations in the state, and is
capable of contacting any country in
the world.
In fact the station, using mostly
used equipment donated by former
club members, has contacted all but
seven countries.
The Amateur Radio Club’s office
is on the third floor of the MSC.
fects on U.S. workers. The semir
also will cover the aspect of divers
in the workplace and the role |
health care in today’s business wori
Admission to all sessions of P:^
paring Yourself for the Changiijjj
Workforce” is free. For more inft
mation about the seminar, com
David Dupre at 846-9688.
GMAT
up 90
points!
Classes Begin
February 9th
call today
1-800-749-6336
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STUDY ABROAD OFFICE
• ENGINEERS •
SPEND SIX WEEKS IN
GERMANY NEXT SUMMER
Through this TAMU/Council on International Educational Exchange
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• Student in good academic standing
• Must have completed Freshman year at time of participation
COURSES:
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• Germany language
• Germany within the European Community
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Application Deadline - March 1, 1991
Informational Meetings - January 29th
Study Abroad Office 9:30 a.m. or 2:00 p.m.
845-0544 251 Bizzell Hall West
NEIL SIMON S
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