Federal Reserve Governor Wayne D. Angell suggested...

Federal Reserve Governor Wayne D. Angell suggested that he could support a pending Fed proposal to allow bank holding companies to acquire healthy thrifts. Currently, banks are only allowed to acquire insolvent thrifts. The Fed is considering a proposal to allow them to acquire profitable thrifts. That proposal has drawn opposition from the chairmen of the House and Senate banking committees. They have warned that the proposal could cause thrifts to leave the troubled Federal Savings & Loan Insurance Corp. system, stripping it of badly needed insurance premiums. Angell said the FSLIC could be protected from harm if the Fed required that the thrifts bought by banks remain within the FSLIC insurance system.