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Congress was warned not to delay thrift controls.

March 28, 1985

Edwin J. Gray, chairman of the Federal Home Loan Bank Board, cautioned the House Banking Committee against putting off for six months a new FHLBB rule requiring thrifts insured by the Federal Savings and Loan Insurance Corp. to receive permission before putting more than 10% of assets into real estate purchases or other direct investments. The rule went into effect last week, but more than 230 members of the House have co-sponsored a resolution to delay it. Gray said "responsibility . . . would fall squarely on the Congress itself" if the FSLIC was further weakened because it could not control risks by the institutions it insures.

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