Newspapers / Daily Tar Heel (Chapel … / Sept. 13, 1990, edition 1 / Page 2
Part of Daily Tar Heel (Chapel Hill, N.C.) / About this page
This page has errors
The date, title, or page description is wrong
This page has harmful content
This page contains sensitive or offensive material
2The Daily Tar HeelThursday, September 13, 1990 IMMIML President From Associated Press reports ; WASHINGTON President Bush videotaped a message Wednesday tell ing the Iraqi people he has "no quarrel" with them and they should blame any hardship from the Mideast crisis on their own government, the White House said. On the eight-minute tape, which the Commercial banks might collapse in recession, budget experts warn From Associated Press reports WAS HINGTON A taxpayer bail out of commercial banks similar to the savings and loan rescue may be neces sary if the economy slips into a reces sion, congressional budget experts told Congress Wednesday. '. "We're on thin ice, but the pants are still dry," Congressional Budget Office Director Robert Reischauer told the Senate Banking Committee. ' He agreed with an earlier assessment by congressional auditors that the $ 1 3.2 billion Federal Deposit Insurance Corp.'s bank insurance fund could face insolvency. The General Accounting Office, in the darkest assessment yet of the nation's banking system, said Tuesday declin ing real estate values and risky bank loans might necessitate a taxpayer bail out for banks if the economy sours. "The fund is too thinly capitalized to deal with the potential for bank failures in the event of a recession," said Comp troller General Charles Bowsher. "Such an event could exhaust the fund and require a taxpayer bailout." THE BEST LOOKING CLOTHES IN TOWN ARE THE LEAST EXPENSIVE (This is what our customers tell us) Winthrop & Wales Irish Tweed Sport Coats reg. $1 95, $69.90 Wool & Wool Blend Lightweight Suits reg. to $400, $149.90 Discontinued Sweaters at Large Mark-Downs, Navy Doeskin Flannels, Blazers reg. $245, $139.90 Hours: Mon. Free tapes message to be White House will broadcast unedited in Iraq, Bush says the U.S. military is in the Persian Gulf only to defend Saudi Arabia from Iraqi aggression. "We want a peaceful resolution. We want peaceful coexistence with the people of Iraq," Bush says on the tape, according to spokesman Marlin Fitzwater. Asked Wednesday if he agreed with that assessment, Reischauer said, "There is a possibility there, yes." Even assuming the economy remains stable, he said, the country can expect 600 to 700 banks to fail over the next four years at a net loss to the govern ment of $5 billion to $6 billion a year unless bank insurance premiums are raised. That would reduce the annual balance of the fund to $4 billion, he said. Legislation removing caps on how much the FDIC can charge for deposit insurance was introduced Wednesday in both the Senate and House by Sen. Donald Reigle, D-Mich., and Rep. Frank Annunzio, D-Ill. Government figures do not yet show a recession, but many economists con tend the economy turned downward when unemployment rose in July and again in August. "Not since its birth during the Great Depression has the federal system of deposit insurance for commercial banks faced such a period of danger and un certainty," Bowsher told the Senate All Cotton Pinpoint Oxford Shirts teg. $60, $34.90 Travel Plaid Sport Coats reg. $165, $39.90 Try Milton's Once and You'll Never Pay Full Retail Again. :mt0 163 E. Franklin St., Downtown Chapel Hill - Sat. 10-6:30; Sunday 1-5 Validated Parking X j uujLbwflo8iiiQnD The White House held off releasing a transcript, but Fitzwater gave an over view of Bush's comments. The president's address was intended to create internal problems for Saddam Hussein by emphasizing Iraq's isola tion in the world community as a result of the invasion of Kuwait. Bush has said previously he would not be unhappy if panel Tuesday. "We have a lot of situations that could wipe the fund out." With 129 bank failures so far in 1990, FDIC Chairman William Seidman has estimated the insurance fund will incur a net loss of at least $2 billion this year atop losses of $5.1 billion in 1988 and 1989. Bowsher said the situation is much worse. Including "several billions of dollars in losses" that banks have yet to report, Bowsher said the insurance fund could already be insolvent. At least 15 of this year's bank fail ures have been among the nation's 200 largest banks. An additional 20 of the largest 200 are expect to fail or require bailout assistance in the next year, Bowsher said. He said total cost to the government would be $4.4 billion to $6.6 billion. In addition, the GAO said, the FDIC has a contingent liability of $8 billion for troubled loans now held by the acquirers of already-failed banks in Texas. Altogether, more than 1,100 of the nation's 13,200 commercial banks holding some $3.3 trillion in federally insured deposits are in financial diffi culty, the auditors said. "A recession would exacerbate their problems and could lead to their failing, as well as the failure of other banks," the GAO auditors said in a 1 24-page report. Events are concerned about the issues," he said. Attacks on certain politicians because of the budget crisis concerned him, though, he said. "We're all so anxious that we tend to be frustrated," he said. "The proper thing to do is to show how bad this hurts. We don't gain much when we attack, and we tend to attack those we depend on to help." McCord also said he felt the activi ties were a success. "The bottom line is, the message got out," he said. "It was a fairly good turnout." The involvement of others in the University community in addition to students was important, he said. Donald Boulton, vice chancellor of student affairs, also expressed his ap proval of the events. "I thought there were some excellent speakers at the rally. They made clear, compelling speeches," Boulton said. Boulton said he was pleased with the turnout from legislators. It was impor broadcast on Iraqi the people of Iraq removed Saddam from power, and the address stressed that Iraqis are paying a heavy price for his actions. The president consulted with Arab specialists, and met twice with State Department and National Security Council officials to come up with the wording, Fitzwater said. The Arab specialists were asked to look at the wording "to make sure that the tone of it translates well into Ara bic," said one official, speaking on con dition of anonymity. "You can write a speech that sounds perfectly good to Western ears," but might not convey the right impression in Arabic, the of ficial said. Fitzwater described the message as "a very candid but personal description of our goals and our objectives in the region." "The president was forthright and didn't stage anything, just gave a direct message," said Sig Rogich, Bush's as sistant for media consultation who pro duced the tape for the president. The White House worked Wednes day on adding Arab subtitles and audio Cuts to be valid, or do you wait until informa tion is verified?" Tuchi said he was hesitant to be op timistic about the announcement from the state budget office. "The information we have (at the University) is that there are no positives in this budget crisis, only negatives." Funding before congress, the situation could have been blown out of proportion and a struggle between the congress and the executive branch could have resulted. At the Student Congress meeting Wednesday night, Hildebolt said, "I have heard some interesting rumors of mamby-pamby game playing going on quite behind my back concerning this bill." from page 1 tant for legislators to hear that their constituents are willing to pay more in taxes to improve education, he said. Boulton and Hildebolt said the next step in solving the University's budget problems was to register voters. Stu dents will be able to vote for legislators who support education, Hildebolt said. McCord agreed, "Unless we change the minds of legislators, or the legisla tors themselves, nothing will be done. They need to realize we are their con stituents," he said. THURSDAY 10:30 a.m.: The Mu Zeta Chapter of Alpha Phi Alpha Fraternity Inc. is having its annual Voter Reg istration Drive until 3:30 p.m. in the Pit and South Campus throughout the week. Register to vote! 11 a.m.: The Membership Committee of the Campus Y is having Y Horizons. Stop by anytime until 2 p.m. in the Pit to check out the terrific commit tees of the Campus Y. Make a difference - we need you! The Black Student Movement is having a mem bership drive in front of the Union until 2 p.m., today and Friday. $3 for a year's membership. 3:30 p.m.: Career Planning and Placement Services will hold Job Hunt 101: Basic information on how to use the UCPPS office for seniors and graduate students in 210 Hanes. 4:30 p.m.: The Student Environmental Action if yr5 f)()DF Evening ii YVy.fcyxN s 1 1 CHIROPRACTIC iS Head, Neck & Back Pain Athletic Injuries 0 Extremities 929-3434 Timberlyne Shopping Center Do the Right Tiling, Be On A Union Activities Board Committee. Go Get Info. Today At The Union Desk. translation to the tape before sending it to the Iraqi ambassador via Deputy Sec retary of State Lawrence Eagleburger. The Voice of America said in a state ment that it was doing the translating before the tape is handed over "to forestall any excuses for not using the tape." Fitzwater said although there had been no direct contact between the two governments regarding the videotape, "We expect that Iraq will honor its invitation to allow this to be addressed to the Iraqi people, and we will ask them to provide us an air time within the next five days." He told reporters that the White House will release the tape to the media after it is aired, or after five days if the Iraqis do not show it. Bush made the tape after the Iraqi government offered to send a TV crew to interview him and broadcast the in terview on national television. He opted to make his own tape instead of submit ting to an interview. He taped the message at 7:30 a.m. in the Oval Office, standing in front of his desk and reading from aTelePrompTer. Increased gasol ine prices and reduced first quarter allotments in University spending are two negatives affecting the University budget, Tuchi said. Reducing University expenses while ensuring the quality of education is a difficult task, he said. "When you freeze positions you're Heyd responded to Hildebolt at the meeting. "If I do nothing as speaker, I will stop these games. If you don't think so, try me." Hildebolt said he thought the bill could have passed, but that it would have been close. "How would it look for Student Congress to vote down a bill intended to benefit the student body?" he asked. Buchenau, however, said the finance committee had no problems with what the money would be used for, but that he was just worried about the precedent he would be setting by granting a subse quent appropriation to the executive branch when it was not necessary. "Since I saw a way to give the ex ecutive branch what it needed without breaking policy, that's what we did," Buchenau said. He explained that the executive branch had $22,000 in its budget, so it could afford to pay the $700 for the meeting. He said Hildebolt should make some adjustments in the executive branch budget. If he still needs money at the beginning of the spring semester, then Coalition (SEAC) will meet in the Campus Y. If you are angry that our state is more concerned with new highways than our education, come to this meeting. Help save our education and the environment! 5 p.m.: The International Association of Stu dents in Economics and Business Management (AIESEC) invites all students interested in foreign cultures and issues to attend its introductory meeting in 226 Union. Learn about foreign cultures, get a job abroad, travel and have fun with us! The Carolina Badminton Club will have an or ganizational meeting in Fetzer Gym B. All levels of skill are welcome. Youth United invites you to join and be a partner to a local teen organizational meeting in the Cam pus Y lounge. Also come by the Pit today for more info. 5:30 p.m.: The Association of International Qifu-rlnAi A? television "Essentially, it repeats some of the themes that the president expressed last; night, particularly that we have no quar rel with the Iraqi people, that the Iraqi government has forced incredible hard-, ships on the people of Iraq by virtue of, the naked aggression against Kuwait," said Fitzwater. Asked if Bush used any of the harsh rhetoric against President Saddam Hussein that he has used for domestic! consumption, Fitzwater said the mes-1 sage was "personal and it's directed! toward the people of Iraq and the hard-I ship they've had to bear in this matter."" The Iraqi government offered Bush' TV time after the president stated pub licly that he would like to have the access to the Iraqi people that Saddam has had to the American people on U.S; , TV networks. Saddam Hussein's news conferences and appearances with hostages have been widely aired on TV news pro grams in the United States. Fitzwater said he anticipated "broad international interest" in Bush's mes sage. from page 1 reaching a dollar target, but that's not much of a way to develop programs." . Future uncertainty for UNC students and employees is a problem created by the budget cuts, he said. "We don't want to subject people in the University to uncertainty, but that's unrealistic." from page 1 he can ask the congress to fund a spring project that he had initially intended to pay for out of his own budget. Hildebolt said he would need money because a large amount of the budgeted funds were in effect already spent. There are telephone bills, supply costs, post age and other unavoidable expenditures. He said it was important that the student body meeting get funds from Student Congress. "I'm not sure there is a better way to spend money right now. "We are going to have to spend money on this crisis. We gave the students a voice, and it looked like Student Con gress didn't support that," Hildebolt said. "I think it would have looked ter rible." Buchenau said he did not support the bill solely because it came after the student body meeting. "I would hate to see bad relations between congress and the executive branch." Hildebolt agreed that there was no place for friction between the two branches of student government. "We should be fighting the budget cuts, not each other." Students (AIS) will meet in 208-209 Union. Elec tions for a Cultural Comer Coordinator and for a Social Chairperson will be held, and a guest speaker will give a presentation on the Outer Banks of North Carolina. The Performing Arts Committee of the Caro lina Union Activities Board is having its first meet ing in 210 Union. Please, come express yourself! The Elections Board will have its first meeting in the Elections Board Office. 2 1 5-A Union. 6 p.m.: The Presbyterian Campus Ministry will have an undergraduate dinner at the Presbyterian Student Center, 1 10 Henderson St. University Counseling Center announces "Brothers" discussion and support group for and about African-American male students in the first floor lounge of Ehringhaus Residence Hall. Hank Frierson, Assistant Dean of the Graduate School, will discuss "Graduate and Professional School Opportu nities for Black Men." Call 962-2175 for info. The Black Business Student Alliance will hold a general body meetingmixer in the Black Cultural Center. Business-related majors are encouraged to attend. Food will be provided. 6:30 p.m.: The Black Student Movement will hold Opeyo! Dance Troupe auditions in Studio B of the Women's Gym until 8:30 p.m. and again Friday 6-8 p.m. 7 p.m.: Carolina Fever announces Women's Field Hockey game against Radford, on the astroturf field. The UNC Outing Club invites those interested in getting out and enjoying the outdoors to come to its meeting in 205 Union. The UNC Popular Culture Study Group will hold its first meeting in 209 Union. 7:30 p.m.: The Student Ad hoc Committee for Peace in the Middle East will have an organizational meeting in 307 Dey Hall. 8 p.m.: The Science Fiction Writers Group will meet in 213 Union. AH those interested in writing science fiction or not are welcome. The SpanishFrench House: Hoy a las ocho, hay Charlemos para reunimos con todas las personas que hablan espanol. Ven a charlar con nosotros! 11 p.m.: WXYC FM 89 3 will play the new com pact disc from Leo Kottke, That's What, in its entirety with no interruptions. ITEMS OF INTEREST Carolina Fever needs members to help sell T shirts in the Pit Sept. 19 and 20. Earn points doing it! Sign up for a time at the office in Suite A of the Union. The Elections Board announces that applications are available in Suite A, 215-B; Suite C; and at the Union desk. Return as soon as possible to Suite A, 215-B. Open districts are SCI , SC2, SCI 6 and SCI 8.; The UNC Student Agencies are now open. Ser- vices include Movie Courier, Grocery Delivery, Typ ing and Temporary Help. For more info, stop by 21 6 A, Suite B, of the Union between 10 a.m. and 9 p.m. Monday-Saturday or 1 -6 p.m. on Sunday. ModernExtension, UNC's modern dance com pany, will hold auditions on Sunday, Sept. 16, 6:30- 8:30 p.m. in the Women's Gym. Interested male dancers are strongly encouraged to attend! The University Counseling Center is offering a Black Graduate Women's Support Group for African-American female graduate and professional stu dents at UNC. For info or to sign up, call 962-2175. The University Counseling Center is looking for new members to join its Dissertation Support Group.' For informationregistration, call 962-2175. Student Health Service announces that a Diabetes Educational Group is now forming. Call 966-6562 for informationregistration. PlayMakers Repertory Company will open its 15th season with "You Never Can Tell," Sept. 12 through Oct. 7 at the Paul Green Theatre. UCPPS announces that the Foreign Service Writ ten Exam will be held on Oct. 27. Deadline for receipt of application is Sept. 21. Applications are available " in 211 Hanes. Get ready for Senior Class Kickoff Sept. 17-22 in the Pit. Look for more details later this week and all next week in the DTH. QENIQR
Daily Tar Heel (Chapel Hill, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
Sept. 13, 1990, edition 1
2
Click "Submit" to request a review of this page. NCDHC staff will check .
0 / 75