Greenspan Defends Loan to Lincoln: Federal Reserve...

Greenspan Defends Loan to Lincoln: Federal Reserve Board Chairman Alan Greenspan defended his agency’s actions in lending $98 million to Lincoln Savings & Loan after it was seized two years ago. Greenspan’s letter, released Friday, was in response to a request from House Banking Committee Chairman Henry B. Gonzalez (D-Tex.) for a detailed report on the loans to Lincoln. Greenspan said the loans were part of a joint package of $230 million in loans made by the Fed and other government agencies to help stem the outflow of deposits from the institution after federal thrift regulators seized it in April, 1989. Greenspan’s letter also assured Gonzalez that the loans were used strictly to pay back insured depositors.