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Five Senators Met With District Bank On Disputed Appraisals at Lincoln

Reported by STEPHEN KLEECE

& STAN STRACHAN

Written by Mr. Kleege WASHINGTON.-Five U.S. Senators last April intervened in the regula Lory examination of Lincola Saving and Loss Association, pressing for more liberal appraisals on the thrift's real estate investments, National Thrift News has learned.

la an unprecedented display of Senatorial effort on behalf of a thrift institution, Sena Alan Cranston, D.. Calif. Dennis DeCenciai, D., Ariz.. John R. McCain, R., Ariz., and John Glenn, D., Ohio, pressed examiners to be Tair to the thrift. They noted that Charles H. Keating, Jr., chairman of

Sen. Denis DeCoastal, B. Ads..
"condoval service" he sought to
examination of Linsala.

Home Loan Bank, which is responsible
for supervision of Lincoln, based in
Irvine, Calif.

As industry so said the dispute

Agency MBS.Sale at FCA?

Agency Ceiling
May Hit $170K

By LEW SICHELMAN

NEW YORK-The wiling on loom
purchased nam your by the reo Federally
chartered secondary engage market
agraria could reach as high as $170,000
according to one of the agencies.
Bond on the prem rats of housing prior
, the loss mit "will be in the
between $165,000-
Breader, chairman of the
Lesh Mortgage Corp, told a

for 1988 is based on a Federal

Wall Sees FSLIC Gains

4

beroars Mr. Keating, who reas Ameri csa Continental Corp., Phoenix, and the regulator centers on $167 milion in additional los reserves the FMLB N Lincoln to set aside for loans and investments on which the appraisals are in dispute.

Roben J. Kishy, general counsel for Lincoln, refused to confirm the meeting berwarn the regulators and Senators (See editorial. p. "

took place. He cited the "confident of the regulatory proc.

The two-hour meeting on the i fluential Mr. Keating's problems w interrupted twice so the Senators could vote on a bill to provide help for the bomeins

Sea Cranston, who was managing the legislation on the Senate floor, did not attend the meeting in Sen. DeConcini's offics, but nopped by briefly to excuse himself and say be wanted the regulators to know that he shared the other Senators' concerns. I think the basis obje

45 MCPs Cost $2B for FSLIC

WASHINGTON-The Federal Savings and Less Insurance Corp. has incurred operating leases of $1.3 billion-and total les of $3 billies on the 45 savings insti vations that are operat a consignm Amounting

which

General

lost monry and remain deral Savings

Corp. had a gogative

worth of $1.49 billion, and a negative rotera

en assets of 9.73% at the end of 1986, the GAO mid