Plan Targets Risky Loans

Wed., Jan. 26, 2000

From Staff

The Federal Deposit Insurance Corp., concerned about its biggest losses from bank failures since the early 1990s, is proposing doubling the minimum required funding for banks that specialize in risky loans to people with inferior credit histories.

Regulators have warned that the higher-interest loans, called subprime loans, can increase the risk of defaults for the deposit insurance fund. They played a role in some of the eight U.S. bank failures last year. The eight failures and another one in late 1998 cost the FDIC about $1 billion last year - its biggest annual hit since the regional banking crises of the early 1990s.

The FDIC is predicting that as many as 20 banks could go under this year.

The FDIC has circulated a draft proposal to the other federal banking agencies, including the Federal Reserve and the Office of the Comptroller of the Currency, which must all agree on a formal proposal to be put out for public comment.

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are tax deductible.

Meet Our Journalists

Jesse Tinsley

Meet Jesse Tinsley. As a certified drone pilot, this veteran Spokesman-Review photographer often can be seen capturing beautiful aerial photographs of our region. Sometimes though, the job requires getting down with the dogs.
Jim Meehan

Jim Meehan is no stranger to Zag Nation. As the lead writer covering the Gonzaga men’s basketball team, he tells the stories behind the game and gets fans a bit closer to their favorite players.
Molly Quinn

There is no artist in Spokane like Molly Quinn. Her whimsical style is instantly recognizable to readers of The Spokesman-Review. She has painted gorgeous illustrations that instantly elevate the journalism accompanying it. She brings to life the stories that defy photography. She makes our pages better.
Rob Curley

Spokesman-Review editor Rob Curley loves to talk with people and learn about their lives, whether it's a best-selling author or a stranger he meets downtown on his walk to lunch. It's that inquisitive nature combined with a playful sense of storytelling that helps make our newspaper different than most.

Plan Targets Risky Loans

Jesse Tinsley

Jim Meehan

Molly Quinn

Rob Curley

Updated: ICE agent charged in shooting of man in north Minneapolis during Operation Metro Surge

Updated: Trump says he paused attack on Iran as negotiations continue

CDC to escalate Ebola response after WHO declares emergency