U.S. Department Of Education Want's Money For Crime Syndicate

www.nytimes.com/1991/06/.../a-kansas-bank-is-insolvent.html A Kansas Bank Is Insolvent
Published: Friday, June 14, 1991The Kansas Bank Commissioner today declared the Bank of Horton, once one of the largest originators of student loans in the nation, insolvent and announced that a bank in a nearby town had bought it to operate it as a branch.The Horton bank had loan losses that exceeded its capital, Commissioner Frank D. Dunnick's office said.

For generations Horton was a small lender, but it grew phenomenally in the 1980's by issuing about $1 billion in student loans guaranteed by other agencies, and ultimately by taxpayers.Most Bank of Horton loans were guaranteed by the Higher Education Assistance Fund, which required a costly Federal bailout last year.The Horton bank has been under Federal scrutiny and has financial problems because of defaults on student loans it originated.Kansas regulators seized control of the bank in late April but had made no statement on the bank's solvency.Mr. Dunnick closed the bank at noon today and appointed the Federal Deposit Insurance Corporation, which insures bank deposits, as its receiver. At the same time, he announced its purchase by the Kansas State Bank in Holton. Mr. Dunnick's office said the Horton bank would open Friday as a branch of the Holton bank.
U.S. Department Of Education Want's Money For Their Support Of Hausman National Crime Syndicate