President Bush on Saturday signed legislation earmarking $30 billion in taxpayer funds to bail out depositors in failed savings and loan associations.
The legislation, provides funds to the bailout agency, the Resolution Trust Corporation, to cover the losses of insolvent thrift institutions.It brings to $80 billion the total taxpayer funds assigned so far to the S&L bailout. The money must be borrowed because the government is operating on a deficit.
In addition, the RTC, is borrowing another $100 billion on its own to buy assets in failed S&Ls. That money is to be repaid once the assets are sold.
The taxpayer funds expended go to the depositors rather than to S&L investors.
Estimates of the total bailout have been as high as $500 billion.