The Federal Home Loan Bank Board said...

The Federal Home Loan Bank Board said it wants to add another barrier to keep savings institutions from fleeing the S&L; insurance fund for the healthier fund that insures deposits in banks. The board has ordered a rewrite of its rules that would require institutions to retain the Federal Savings and Loan Insurance Corp. as a condition to keep legal advantages of being an S&L.; The current policy effectively allows institutions to escape the higher insurance premiums of FSLIC by converting to the Federal Deposit Insurance Corp., and retain the advantages of being considered members of the FHLB system.