Details of Bush proposal

TAXPAYER COST

Budget Director Richard Darman said the bailout would cost taxpayers $28.1 billion between 1989 and 1994 of the rescue plan and a total of $39.9 billion over 10 years. Over 30 years, the public would share 54 percent of the burden.

HIGHER INSURANCE PREMIUMS

The deposit premium paid by banks would rise from the current 83 cents per $1,000 of deposits to $1.20 in 1990 and $1.50 thereafter. The premiums would go into the bank insurance fund and could be lowered as the fund is built up. The fee for S&Ls, now $2.08 per $1,000, would rise to $2.30 from 1991 until 1994, when it would decline to $1.80.

$50 BILLION BOND ISSUE

The government would issue $50 billion in 30-year bonds over three years to finance the cost of merging and closing about 350 failed institutions. This money would be in addition to $40 billion regulators pledged last year to sell or prop up 223 institutions.

Part of the interest on the bonds would be paid by increasing premiums paid by institutions for deposit insurance, with the rest coming from taxpayers. There would be no direct fee on depositors.

DEPOSIT INSURANCE AGENCIES

The Federal Deposit Insurance Corp., which insures deposits in the nation's 13,000 banks, would be merged with the Federal Savings and Loan Insurance Corp., which guarantees accounts in 3,000 S&Ls.

The insurance funds for the two agencies would remain separate, although the new agency would carry the FDIC name and both banks and thrifts would post the FDIC sticker on their door.

The current three-member FDIC board would be expanded to five members, including the top S&L regulator, the chairman of the Federal Home Loan Bank Board.

INSOLVENT THRIFTS

A newly created Resolution Trust Corp. would be established to resolve the affairs of insolvent thrifts within five years although the FDIC, under contract, would take control of the failed S&Ls.

The new corporation would have an oversight board comprised of the secretary of the treasury, the chairman of the Federal Reserve Board and the head of the General Accounting Office.

JOINT SUPERVISION OF THRIFTS

Pending the creation of the new regulatory structure by Congress, the FDIC would team with the FSLIC in an interim supervisory program with personnel from the Federal Reserve Board and Office of the Comptroller of the Currency.

FEDERAL HOME LOAN BANK BOARD

The Federal Home Loan Bank Board would be renamed the Federal Home Loan Bank System and its current three-member board would be replaced by a single chairman, subject to the oversight of the secretary of the treasury in the same manner as the comptroller of the currency, who regulates national banks. Treasury Secretary Nicholas F. Brady said the current bank board chairman, M. Danny Wall, would get the job.

PURSUING FRAUD AND THEFT

The Justice Department would get $50 million more to attack fraud in the financial industry. Federal regulators would be given broader power to impose temporary cease-and-desist orders. Civil penalties would be increased to fines of up to $1 million per day, and criminal penalties to 20 years or more in prison. Regulators would get the authority to offer rewards to whistle-blowers.

HIGHER CAPITAL

S&L owners would be required to put up more of their own money, meeting the same capital requirements as commercial banks by June 1991. They would have to increase their capital to 6 percent of assets, double the current standard.