
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, May 23, 1990                   TAG: 9005230164
SECTION: BUSINESS                    PAGE: B4   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                LENGTH: Short

FDIC RUNS IN RED FOR SECOND YEAR

The federal fund that insures deposits at the nation's 13,200 banks lost money for the second consecutive year as a result of a continued hefty number of bank failures, the government said Tuesday.

The Federal Deposit Insurance Corp. reported a loss of $851 million in 1989, when 207 banks failed or required government assistance to stay open. That was down from a $4.24 billion in 1988 when a post-Depression record of 221 banks failed.

The FDIC was forced to pay more to take over the failed banks than it received in insurance premiums paid by healthy banks, a spokesman said. The FDIC had liquidation expenses of $4.13 billion in 1989, compared with $7.36 billion it spent on failed banks in 1988. - Associated Press

by CNB