Gov. Norm Bangerter has called a Sept. 14 special session of the Legislature to consider a settlement with depositors of five failed thrifts. He also has called legislators to a briefing about the settlement on Aug. 31 at 2 p.m.
According to a letter Bangerter sent to Senate President Arnold Christensen, Bangerter had hoped to call the special session for Aug. 31. But he decided to delay it and hold only a briefing on that date because of the "complexity and magnitude of the thrift problem."At the briefing for legislators, Bangerter said attorneys for both the state and thrift depositors will be present to answer questions about the proposed settlement. Christensen said he did not know if the briefing would be open to the press.
The state is proposing a $100 million settlement with depositors in the failed thrifts - which doesn't return all of their money. About $106 million in deposits were frozen in 1986 when the state took over five thrifts after regulators declared their deposit insurance fund insolvent.
To finance the $100 million settlement, the Legislature is being asked to approve issuing a $33 million general-obligation bond and approve an additional $9 million appropriation.
An additional $19 million contribution would come from the state's liability insurance carriers. And $39 million has already been distributed to depositors; that distribution was recovered through liquidating the thrifts' assets.
Attorneys for the depositors are expected to continue pursuing suits against numerous other parties that they blame for the thrifts' collapse until depositors recover 100 percent of the money they had invested.