Hard-Hit S&Ls Request Federal Emergency Aid: Hard-Hit S&Ls Ask For Emergency Aid
The beleaguered savings and loan industry yesterday formally asked the government to grant emergency aid to inflation-squeezed thrift institutions by providing them with an infusion of fresh capital through low-interes* loans.</br></br>The plan, adopted by the Unitea States League of Savings Associations, calls on the Federal Savings and Loan Insurance Corp. to use its $7 billion safety fund to lend hard-hit institutions enough to holster their net worth.</br></br>At the same time, the trade organization tailed for a series of new proposals to encourage saving and reduce interest rates - including restrictions on money market mutual funds, which have sapped billions from S&Ls.</br></br>The new package, approved overwhelmingly by the trade groupÛªs executive boards late yesterday, is sched- uled to be presented to the entire association membership this morning and pushed vigorously by the organizationÛªs lobbyists.</br></br>However, unlike a previous version of the plan, the subsidized loans to the institutions would not involve purchase by the government of their older, lower-yield mortgage portfolios. Instead, the aid would be in the form of a straight loan.