The head of the Federal Deposit Insurance Corp. says he may ask Congress for an additional $60 billion to $80 billion to mop up the savings and loan industry rescue.
L. William Seidman also says he wants to merge the two boards that oversee the bailout effort.In testimony being prepared for delivery to the Senate Banking Committee on Thursday, Seidman estimated how much would be required to finish the job by the end of September 1992. The bailout agency, the Resolution Trust Corp., has already had $80 billion appropriated to it to cover losses in failed savings and loans.
The additional appropriation would bring the total cost to $140 billion to $160 billion, which Seidman said was the equivalent of the administration's year-old estimate of $130 billion, adjusted for inflation.
Seidman said in a telephone interview Tuesday night that he also believes the agency will need to borrow $30 billion to $40 billion, short term, until it can sell the assets of the failed thrifts. The agency had previously planned to borrow more than $100 billion in such short-term funds, which it refers to as working capital.
Separately, Seidman said he may propose to create a single, nine-member board to run the bail-out agency. That would eliminate the controversial dual board structure.