Federal regulators on Friday pledged $1.3 billion to rescue 11 insolvent savings associations in Texas, selling them to a cable television company.
The Federal Home Loan Bank Board said the Adam CorporationGroup of Bryant, Texas, a cable television station operator owned by Don A. Adam, is investing $65 million now and an additional $15 million by the end of 1990 to acquire the 11 institutions.They are being merged under the name of Olney Savings and Loan Association. All deposits, even those over the insurance limit of $100,000, are transferring, the bank board said.
So far this year, regulators have closed or merged 135 insolvent S&Ls nationwide, 53 of them in Texas and Oklahoma. Those states were hard hit by the collapse of oil prices in 1986 and a subsequent break in real estate prices.
Many of the failures in Texas have been blamed on fraud and the abuse of the state's regulatory system.
Rep. Doug Barnard, D-Ga., said a study to be published next week by his House Government Operations subcommittee shows that three-quarters of all S&L insolvencies appear to be linked in varying degrees to misconduct.