PRESS RELEASE
Federal Deposit Insurance Corporation
May 19, 1995
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-34-95
ATTENTION: BUSINESS EDITORS AND WRITERS
FOR IMMEDIATE RELEASE
If the Savings Association Insurance Fund (SAIF) becomes insolvent, the impact could
spread beyond thrift institutions, Ricki Helfer, Chairman of the Federal Deposit
Insurance Corporation (FDIC), warned Friday.
"The failure of the SAIF would undermine the confidence Americans have in the FDIC
as a source of stability for the financial system and would call into question the
government safety net for financial institutions," Chairman Helfer said in a speech to the
Mississippi Bankers Association.
She noted that confidence in the government's safety net was a major reason problems
at financial institutions in the 1980s and early 1990s did not lead to economic disarray.
The SAIF is significantly underfunded. At year-end 1994, the SAIF had a balance of
$1.9 billion, or 28 cents in reserves for every $100 in insured deposits at member
institutions. By contrast, the Bank Insurance Fund (BIF) at year-end had more than
$1.00 in reserves for every $100 in insured deposits at member institutions, and is
expected to reach $1.25 in reserves for every $100 in insured deposits in mid- 1995.
The FDIC manages both the BIF and the SAIF.
A copy of Chairman Helfer's speech is attached.
Federal Deposit Insurance Corporation
May 19, 1995
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-34-95
ATTENTION: BUSINESS EDITORS AND WRITERS
FOR IMMEDIATE RELEASE
If the Savings Association Insurance Fund (SAIF) becomes insolvent, the impact could
spread beyond thrift institutions, Ricki Helfer, Chairman of the Federal Deposit
Insurance Corporation (FDIC), warned Friday.
"The failure of the SAIF would undermine the confidence Americans have in the FDIC
as a source of stability for the financial system and would call into question the
government safety net for financial institutions," Chairman Helfer said in a speech to the
Mississippi Bankers Association.
She noted that confidence in the government's safety net was a major reason problems
at financial institutions in the 1980s and early 1990s did not lead to economic disarray.
The SAIF is significantly underfunded. At year-end 1994, the SAIF had a balance of
$1.9 billion, or 28 cents in reserves for every $100 in insured deposits at member
institutions. By contrast, the Bank Insurance Fund (BIF) at year-end had more than
$1.00 in reserves for every $100 in insured deposits at member institutions, and is
expected to reach $1.25 in reserves for every $100 in insured deposits in mid- 1995.
The FDIC manages both the BIF and the SAIF.
A copy of Chairman Helfer's speech is attached.
Remarks by
Ricki Tigert
Chairman
Federal Deposit Insurance Corporation
before the
Mississippi Bankers Association
Panama City, Florida
May 19, 1995
The late C. C. Hope -- banker, industry leader, director of the Federal Deposit Insurance
Corporation and a good friend to many of us here today -- once told a marvelous story
to illustrate the meaning of tenacity. During the Civil War, the Union ran a prisoner-of-
war camp in the wilds of northern Michigan. No one escaped from the camp -- ever.
In 1863, one of the prisoners began taunting the guards at every opportunity with the
words: "General Bragg sure whupped you boys at Chickamauga" -- the battle having
recently occurred.
This went on for several weeks.
The Union colonel who ran the camp tried to ignore the taunting, but it soon had the
effect of raising the morale of the prisoners while lowering the morale of the guards --
the last thing in the world the colonel wanted -- so he called the Confederate in and
gave him a choice. If he took the oath of loyalty to the Union, he would be released and
transported South. If he did not, he would spend the duration of the war in solitary
confinement.
The Confederate thought hard for a moment and replied: "I'll take the oath."
The Union colonel smiled and administered it.
When it was over, he said to the former-Confederate: "That wasn't so bad, was it?"
"No, sir," was the reply, "it wasn't."
"Permission to speak freely, sir," the former-Confederate requested.
"Permission granted," the Union colonel said kindly. "Ain't it sad," said the former
Confederate, "how General Bragg whupped our boys at Chickamauga?"
I am one of those people who considers tenacity a virtue. So -- at the risk of sounding
like that Confederate soldier -- I want to discuss an issue I have raised a few times
before. I came here today to talk with you about the problem of the Savings Association
Insurance Fund (SAIF), which, as you know, is managed by the FDIC.
Ricki Tigert
Chairman
Federal Deposit Insurance Corporation
before the
Mississippi Bankers Association
Panama City, Florida
May 19, 1995
The late C. C. Hope -- banker, industry leader, director of the Federal Deposit Insurance
Corporation and a good friend to many of us here today -- once told a marvelous story
to illustrate the meaning of tenacity. During the Civil War, the Union ran a prisoner-of-
war camp in the wilds of northern Michigan. No one escaped from the camp -- ever.
In 1863, one of the prisoners began taunting the guards at every opportunity with the
words: "General Bragg sure whupped you boys at Chickamauga" -- the battle having
recently occurred.
This went on for several weeks.
The Union colonel who ran the camp tried to ignore the taunting, but it soon had the
effect of raising the morale of the prisoners while lowering the morale of the guards --
the last thing in the world the colonel wanted -- so he called the Confederate in and
gave him a choice. If he took the oath of loyalty to the Union, he would be released and
transported South. If he did not, he would spend the duration of the war in solitary
confinement.
The Confederate thought hard for a moment and replied: "I'll take the oath."
The Union colonel smiled and administered it.
When it was over, he said to the former-Confederate: "That wasn't so bad, was it?"
"No, sir," was the reply, "it wasn't."
"Permission to speak freely, sir," the former-Confederate requested.
"Permission granted," the Union colonel said kindly. "Ain't it sad," said the former
Confederate, "how General Bragg whupped our boys at Chickamauga?"
I am one of those people who considers tenacity a virtue. So -- at the risk of sounding
like that Confederate soldier -- I want to discuss an issue I have raised a few times
before. I came here today to talk with you about the problem of the Savings Association
Insurance Fund (SAIF), which, as you know, is managed by the FDIC.