Who Really Made the S&L Mess?
Glynn, Lenny
—Woody Guthrie tiring the mid-to-late-1980s much of the American Southwest came to resemble the closing scenes of The Last Picture Show, with the prairie winds blowing dry leaves...
...We've already paid enough as a nation for this debacle—in global standing as well as in cash...
...As Stanford Law School's Joseph Grundfest notes, the League was better able to override the public interest than most of the more narrowly based lobbies...
...And if the past is prologue, the "rescue" will itself generate "Son of S&L" scandals...
...The unspoken aim was a "free market" with risks guaranteed or underwritten by the state...
...This would strain the fund," Davis wrote, "a fund, remember, built of moneys from the thrifts themselves—but not destroy it...
...Too bad if we couldn't be there for the fun, but we're all in on the action now...
...The real question is whether they should have undertaken the transactions at all...
...By his conservative calculation of $150 billion for the initial bailout—not counting interests costs that will triple the bill by 2020—thirteen states, mostly in the South and Southwest, will be "net SPRING • 1991 • 199 The SIL Mess winners" as depositors are made whole, while thirty-seven other states "lose" on balance, despite having some failed thrifts...
...Four months later, in March, 1984, Parsons and Reese sold the property to two developers who borrowed money from Sunbelt Savings in Dallas to buy it...
...But that's hindsight...
...Keating paid himself and close relatives about $34 million in salaries for running up losses of $2.5 billion...
...It was left to Congress, faithfully stenographing the S&L wish list, to complete the rewrite...
...Goldwater bluntly proposed privatizing Social Security and selling off the Tennessee Valley Authority to private business...
...Call it "Sunbelt ideology," though it's hardly unique to the region...
...Consider the American Diversified Savings Bank of Lodi, California, one example cited by Martin Mayer in the best book so far on S&Ls, The Greatest Ever Bank Robbery...
...The worst outrage in the S&L mess, Mayer writes, "is not the hundreds of billions of dollars, but the demonstration of how low our standards for professional performance have fallen in law, accounting, appraising, banking and politics...
...Origins of the Crisis To be fair, the Reagan administration did inherit an S&L industry in its first major crisis since 1932...
...There is, after all, a long tradition of confidence men in both American life and literature and a free-floating population of loan kiters, financial con men, and "boiler-room" land and commodity hustlers separating fools from their money...
...That package of deals was rushed through by the incompetent Danny Wall, Reagan's head of the Federal Home Loan Bank Board (FHLBB), which was due to be replaced in 1989 by the Resolution Trust Corporation...
...Part of this is regional sentiment, but there's a real sense that Head Start and other programs for children and the poor will pay for this...
...That same day, Reese sold the property to five developers, who borrowed more money from Western Savings in Dallas to purchase the property at a price of $41,578.86 per acre—total cost, $65.737 million...
...As L.J...
...Congressional Democrats, up to their eyeballs as a party in the S&L mess, prefer to keep the spotlight on the President's son Neil Bush, the "poster boy of the S&L crisis...
...Alas, the S&L lobby in Washington, the U.S...
...In its original manifestation, the Goldwater campaign of 1964, Sunbelt ideology had the virtue of some libertarian consistency...
...That enabled banks and S&Ls to bid against the money funds for depositors and spawned a new "industry" on Wall Street— brokering "hot money" —packaging deposits close to the $100,000 insurance limit into S&Ls desperate for cash flow...
...For its part, the Federal Home Loan Bank Board lowered the reserves that S&Ls were required to hold from 5 percent of outstanding loans to 3 percent, nearly doubling S&Ls' lending power...
...Parsons borrowed the money from State Savings in Lubbock...
...The price per acre was now $23,995.34...
...Sunbelt banking was a weird, weird scene...
...The S&L sheep, in short, were now free to play with the wolves of Sunbelt real estate or to be taken over by those very wolves who could then bid up for vast amounts of "brokered" deposits to loan to each other...
...Indeed, this year, foreign investors have begun a massive capital flight from the United States, selling billions of dollars in stocks and bonds and sharply curbing direct investment...
...Like many spawn of the Sunbelt's salad days, Silverado managed before collapsing to breakfast on the new morning in America—swelling from under a hundred million dollars in loan assets in 1980 to billions of dollars by the time federal regulators were given a green light to stop the hemorrhaging...
...Outside the banking sector, where it guarantees $2 trillion in commercial bank deposits, the government has underwritten at least $750 billion in other loans to farmers, homeowners, students, and so on...
...The Reese family used money borrowed from Stockton Savings in Addison, Texas, to buy the land back and then defaulted on the loan, forcing Stockton to foreclose...
...those of his other home state, Texas, will "win" $3,510 per man, woman, child...
...In a more subtle regulatory shift, the Federal Home Loan Bank Board in 1980 also deleted a long-standing rule limiting brokered deposits to 5 percent of an S&L's total...
...Together with the incentive structures that newly lax S&L regulations set up, the combination was highly combustible...
...The Reaganauts' disparaging and starving of regulatory bodies went hand-in-glove with the league's efforts...
...Most farm supports, water projects, loan guarantees, deposit insurance—the bulk of New Deal financial and infrastructure proSPRING • 1991 • 195 The SAL Mess grams—would be inviolable...
...And because taxpayers as a class are far poorer than savers as a class—especially savers who telex wads of $100,000 to desperate S&Ls—the bailout will effect a classically Reaganite "trickle-up" of wealth from poor to rich...
...Regional Favoritism Professor Edward W. Hill of Cleveland State University was the first to tote up the interregional resource transfers the 1989 S&L rescue will demand...
...but there were grounds for hope...
...The S&L mess is fueling a general crisis of confidence in U.S...
...The Southwest's resulting love-hate relationship with the federal government has been compounded by the get-rich-quick mentality of resource booms in land, gold, uranium, and, above all, petroleum...
...Germain of Rhode Island and Senator Jake Garn of Utah...
...The most grotesque, still metastasizing financial scandal in American history, the S&L collapse has already busted this year's federal budget, forced George Bush to renege on his fatuous "no-tax" pledge, undermined foreign confidence in U.S...
...S&Ls are estimated to have contributed more than $11 million to politicians during the 1980s...
...The price per acre had soared to $11,188.19 and the debt on the cow pasture had now climbed to $24 million...
...The Federal Home Loan Bank Board also opened the once tightly regulated S&L business— formerly dominated by locally based "mutual" associations of depositors—to virtually anyone with the capital to buy or found an S&L...
...The current recession will be deepened both by higher taxes and the lost liquidity that now-defunct S&Ls provided...
...We're looking at resources we desperately need," said Ohio Governor Richard Celeste last summer, "and see them being dished out to deal with this problem—with no real sense that we have a tourniquet to stop the hemorrhaging...
...Haste in vending off a posse of Texas S&Ls in late 1986—the so-called Southwest Plan—led to poorly structured deals that promise a virtually risk-free windfall for investors like Revlon chairman Ronald Perelman...
...The result was a slow-motion bank run stanched only when Congress lifted the interest rate ceilings in March, 1980 and raised the levels of federal deposit guarantees to $100,000...
...By the late 1980s some of the largest, most disastrous failures would strike S&Ls with up to half their deposits in "hot money...
...Given its S&L record, these are some very large beads to worry with...
...Hill calls it "the largest Corporate Welfare program since the Great Depression...
...The S&L industry seemed on the verge of extinction...
...Of course they will...
...That plunged the bulk of the S&Ls into a bind: they might be able to attract deposits by paying high interest rates, but the bulk of their outstanding loans was tied up in low-paying mortgages, they still faced mandatory interestrate "caps" on new mortgages, and they were virtually barred from lending to riskier, more lucrative industries than home buying...
...Alan Greenspan, now chairman of the Federal Reserve Board, was one of those who testified before Congress on behalf of Charles Keating, the egregious owner of Lincoln Savings in California...
...Three weeks later, Reese's Children's Trust sold the foreclosed property to Monticello Investments, a shell company whose president and treasurer was Louis G. Reese III...
...Pyramiding on a tiny capital base, American Diversified's growth was almost exclusively fueled by "hot money...
...Were the industry to take its losses now [1982-83], it would cost the taxpayers nothing...
...At collapse, the bank's average deposit was $80,807...
...It's time, in short, to drop the "free market" cant, admit that we've nationalized a vast chunk of our banking and real estate system, and control its reprivatization over many years...
...With blue-chip opinions blatantly up for sale, half a dozen professions prostituted themselves...
...Neil Bush was a tender thirty years of age when named director of a Denver S&L called Silveradolocal nickname: Desperado—later shut down at a cost to taxpayers of over $1 billion...
...Along a fault line running roughly from Tulsa to Dallas and Houston, the decay spread east, west, and south as far as Louisiana, Arizona, and Colorado...
...Roughly half the $150 billion plus in failed assets (aka "loans") now in the Resolution Trust Corporation's hands are in Texas and Oklahoma alone...
...With hundreds of S&Ls still under water financially, that opened the way for cheap takeovers and start-ups by poorly capitalized, even shady "entrepreneurs...
...Instead, thanks to the vast flows of "brokered" money, S&L depositors in, say, Lubbock, Texas, may hail from Boston, Chicago, Osaka, or Medellin...
...When the music stopped in 1986-87 and land values began plunging fast, only the very last speculators and the S&Ls that lent to them were hurt—Uncle Sam was left standing, guaranteeing all those deposits...
...q SPRING • 1991 • 201...
...Little wonder, then, that when Sunbelt ideology came to power with Reagan's 1980 victory, the removal of all oil and gas price controls, indeed, the dismantling of any serious federal energy policy at all—save for filling the Strategic Oil Reserve— was as high on the new regime's agenda as tax cuts and the defense spending surge...
...In November 1984, the developers sold the remaining three-quarters of the land back to the Reese Children's Trust No...
...Bankers began earning more money on "origination" fees for loans than on the loans themselves, while developers were often able to sell projects to other speculators for a heady profit...
...Still, it was a hell of a party...
...It's probably too much to expect that Congress will effectively grapple with the corrupt campaign financing that lies at the root of the S&L disaster...
...It is, in fact, the dominant ideology of the Nixon-CarterReagan-Bush era...
...There will be plenty more casualties, financial and political...
...Spawned by the late seventies' oil boom and the speculative frenzies that followed, the derelict structures are the visible legacies of the savings and loan (S&L) "mess...
...Three days later, the Reese family paid Stockton $2 million in overdue interest to get a loan extension...
...Perelman picked up five dead Texas S&Ls for $161 million in cash while receiving $1.2 billion in tax benefits and dumping the riskiest assets onto the government's balance sheet...
...It should be no surprise that the mix of government deposit guarantees, unlimited access to brokered deposits, freedom to speculate, and demoralized, intimidated regulators would breed scams among the Sunbelt S&Ls...
...From 1983 to 1988, when it was finally shut down, American Diversified held from $11.7 million to over $1.1 billion in assets, all of them federally insured, $800 million of them worthless loans to be made good by the Feds — "Roughly as much," Mayer notes, "as the Federal government had at risk in the muchdebated bail-outs of New York City, Chrysler and Lockheed combined...
...Making good their deposits promises small comfort for Texans who've lived through boom, bust, layoffs, foreclosures, and the collapse of home values...
...For real estate brokers and investors, construction firms, lawyers, auditors, title companies, surveyors, and so on, it was in those days heaven to be alive...
...finances, and derailed the careers of the politicians—Jim Wright, Tony Coehlo, the "Keating Five" —so far identified as willing tools of the S&L lobby...
...Son Neil has been accused of conflicts of interest for his role in recommending loans from Silverado to some of his own, generous business partners...
...It was a classic Ponzi scheme in which the latest investors were paid off by new incoming funds, fresh "hot money" deposits fueling new waves of speculation...
...That's because the S&L mess was born under, analyzed by, and is being "solved" through the lenses of a uniquely American optic...
...It's hardly surprising that such a stew simmered best over the ideological campfires of the Southwest and Southern California, the adopted homelands of Richard Nixon, Ronald Reagan, and George Bush...
...Sunbelt Savings, Western Savings, and State Savings have all been named by the Houston Post as members of a daisy chain of failed thrifts with links to organized crime and even, perhaps, to the CIA...
...The balance of special-interest demands that Congress brokers "is vulnerable to a rogue constituency that has a broad geographic base, pursues a noncontroversial ideology popular with the middle class, actively finances congressional campaigns and is willing to exploit Congress' fiscal blind spots," Grundfest argues...
...The result will be slower recovery from recession and less room for the Fed to ease credit without triggering a full-scale collapse of the dollar...
...A more relevant point is that the "distressed" office buildings, malls, and condos the feds are now trying to sell in the "winning" Sunbelt states will serve for years to come as lures for companies in other regions to relocate in what amounts to financial free-fire zones...
...The complex daisy chains of property "flipping" practiced by the new breed of "rogue" S&L operator was captured by Curtis J. Lang in the July 10 Village Voice: In October 1983, one Dallas real estate investor, Louis G. Reese III, bought 2145 acres of cow pasture from a Vancouver S&L called First City Investment, which loaned him $17.25 million, or $8,014.51 per acre...
...In 1981, the "Father" of the brokered deposit business, former Merrill Lynch chairman Donald Regan, became Ronald Reagan's secretary of the treasury...
...Brokers raked in commissions, auditors inflated values, bankers booked "origination" fees, lawyers battened on fighting off regulators, regulators sometimes sold out for plush jobs at the S&Ls, journalists largely missed the story, and some toadying economists blessed the new S&L "entrepreneurs" as a godsend...
...When you have an imposed deadline, no cash, and doubtful credit, you are going to pay through the nose," says William Seidman, head of the Resolution Trust...
...Made as the FHLBB was running out of both time and money, these eleventh-hour deals are a paradigm of what the government should not do as it unloads its massive S&L portfolio...
...The real answer is no...
...Individual and corporate taxpayers in 37 states and the District of Columbia will be shipping vast sums of money to 13 states over the next 30 years...
...And if nationally financed deposit insurance is, indeed, reimbursing depositors in Sunbelt S&Ls, those depositors don't necessarily live in the Sunbelt, nor are they likely to re-invest there soon...
...See: Florida, History...
...A few hours later, the developers sold one-quarter of the land, which was now encumbered with a debt of $44.7 million, at a price of $20,915.77 per acre...
...Interest rates were easing, and much of the S&L industry could look forward to a return to health once the rates fell enough to make mortgages profitable again...
...It is, however, a necessary and feasible first step toward restoring integrity to the political and financial process...
...Selling the assets we've bought collectively to private speculators now promises a final "trickle up" windfall...
...So may the selloff of S&Ls and their assets, if the government persists in rushing what ought to be a slow, deliberate process...
...financial management...
...One measure is that the dollar, once a "safe haven," continued to slump through most of the Iraq-Kuwait crisis...
...The prime rate climbed as high as 20.5 percent by 1981...
...And they were hardly unique...
...taxpayers will have to make up for all the "missing deposits...
...It's called the 1982 Depository Institutions Act, sponsored by Representative Frederick St...
...For starters, the insurance is being paid legally...
...Nervous foreigners view the S&Ls as harbingers of disasters that could come in commercial banking, insurance, and other financial industries operating under the umbrella of government guarantees...
...Budget-based, mark-to-market accounting," he warns, "is not an iron-clad guarantee against a recurrence of an S&L-type failure...
...Of seventeen S&Ls Greenspan cited in his testimony, sixteen have failed...
...The dream of home ownership that the S&Ls were designed to finance may recede beyond the grasp of millions of Americans...
...Sunbelt ideology is pseudo– laissez-faire, shamelessly combining a drive to get government "off the backs" of business with a huge appetite for government spending and guarantees—currently, of course, for the S&Ls victim/depositors...
...The script that cast Jimmy Stewart as a benevolent S&L owner in It's a Wonderful Life was being rewritten as film noir...
...This bears watching...
...This foul mix explains why the vast bulk of S&L losses so far is concentrated in Texas and a few neighboring states that spent the middle 1980s in an insensate burst of real estate speculation...
...Instead of lending $100,000 with $5,000 on reserve, an S&L could now float loans of nearly $170,000 on the same $5,000 safety margin...
...With the former Evil Empire and its satellites imploding economically at year-end 1990, the United States looks increasingly like a marginal player in resolving the cold war it paid so dearly to "win...
...The League's already legendary clout was greatly enhanced by the bipartisan bidding for business favor— and campaign contributions—that marked the early Reagan years...
...But in the sixteen years before the ascension of Ronald Reagan, the ideology mutated, dropping its politically suicidal honesty while retaining its deregulatory core...
...It's far easier to pontificate about S&L "crooks" than to admit that it was the whole degrading system of fund raising that had a Republican administration wooing S&L contributors with lax regulations while Democratic lawmakers awash in S&L dough lobbied and intimidated the few regulators who tried to slow the rot...
...Given the shaky state of the nation's finances, the next "discontinuity" could be a tragedy...
...Throughout the region, once-busy oil rigs lay rusting, empty "see-through" office buildings stippled big-city downtowns, tawdry malls and unsold condos flaked and peeled along the interstates and feeder roads...
...Indeed, popular myth by now ascribes the S&L crisis to outright fraud, embezzlement, and con artistry...
...Right accounting might be easier to get through Congress and the regulatory bodies than any package of campaign reform...
...Davis noted in a brilliant Harper's article ("Chronicle of a Debacle Foretold," September 1990), all that would have been required was to let the worst S&Ls fail at the cost of a few billion dollars from the Federal Savings and Loan Insurance Corp...
...This Wild West of raw "individualism" is not only dominated by vast federal landholdings but historically more dependent on federal spending than any other region...
...But that Washington has to go hat-in-hand to allies to finance Desert Shield is largely a result of the deregulatory moves that "freed" S&Ls from 1982 to the present from the controls and supervision that had made them secure institutions for half a century...
...That 1985 warning shot was only a foretaste for foreigners of the bizarre budget wrangles that paralyzed the government last fall when the cost of the S&L rescue busted the budget...
...That same day, Reese sold the property to Jerry Parsons, who worked out of Reese's Dallas office...
...Volcker's brutal money squeeze had broken the back of inflation...
...It may also be the quickest way to detect where in the morass of federal obligations the next disaster is incubating...
...The aim would be to capture for the public the very capital gains that motivate speculators to buy what the government now plans to dump 200 • DISSENT The MIL Mess fast and cheap...
...It also pressed for sublte but far-reaching shifts from pliant Reagan-era regulators—then drove truckloads of lucre past Congress's fiscal "blind spots" through rulings so obscure they made even financial journalists yawn...
...However sleazy the Reagan-era S&L industry became, fraud per se explains only a fraction of the losses—perhaps a mere $10–$20 billion...
...League for Savings Institutions, didn't see it that way, and, in the supercharged laissez-faire ambiance of Reagan's Washington in 1982 it was able to get a series of legislative and regulatory changes that created a disaster our children will be paying for...
...No one had ever put brick to a stick...
...A series of arcane accounting changes followed, essentially allowing S&Ls to depict themselves as financially sound while the real value of their balance sheets deteriorated...
...There really is no time to waste...
...Three days later, Parsons sold the land to a shell company called 2138 Joint Ventures controlled by himself and Louis Reese, simultaneously using part of the original loan as collateral to get a $5.3 million loan from a Fort Worth bank...
...From the Grand Canyon to the sprinkler systems of Beverly Hills and the irrigation ditches of the San Joaquin Valley, a vast hydraulic civilization has been built on taxpayers' money...
...As William Greider, author of The Secrets of the Temple, argues, "The greatest hypocrisy of the era is that despite its laissez-faire pretensions, the Federal government is now more deeply engaged in the affairs of private finance—both as owner and manager and as generous beneficiary—than at any other time in the nation's history . . . they are buying and selling and subsidizing — and virtually giving away—financial assets and property on a scale that would have made New Dealers tremble...
...In a competitive bidding war that quickly followed, California, Texas, and Florida soon adopted even more liberal legislation for their state-chartered—but federally insured—S&Ls, allowing them to lend to any venture they wanted, even to take equity stakes...
...The dollar's 1980s peak, in fact, came with a March-April 1985 run on Ohio and Maryland S&Ls, not the famous Plaza Accord to lower the greenback in September...
...That the United States is paying for the Reagan-Bush decision to "get government off the backs" of the energy industry is painfully obvious as Saddam Hussein squats atop Kuwait...
...Nine months later, Western Savings went broke and the developers filed for bankruptcy...
...Not suprisingly, the net worth of American S&Ls plummeted from $32 billion in 1980 to $3.7 billion by December 1982...
...Freeing" S&Ls to invest up to 40 percent of their lending in nonresidenSPRING • 1991 • 197 The BBL Mess tial real estate and 30 percent in high-interest consumer loans, the act relieved S&Ls of the chore of financing home construction and sales...
...The S&L mess, then, wasn't mainly fraud, just a magic-realistic collective delusion played out by Babbitts in cowboy boots...
...That argument is already causing fissures among regions as the full cost of the S&L crisis bites...
...The full cost of the S&L "rescue" will likely surge past current estimates of $500 billion or $2,000 per capita...
...only the regulations meant to monitor them would be scrapped and the regulators degraded...
...As inflation hit double digits, billions of dollars drained out of S&Ls and commercial banks barred from paying more than 5.25 percent...
...A far simpler measure might be for Congress and the administration to craft legislation mandating accurate accounting—that is, marketbased pricing of the risks the feds routinely assume in loan guarantees and other programs hidden off the books...
...Bush, who headed a Reagan administration task force on deregulation, now professes himself 198 • DISSENT The MIL Mess shocked, frankly, shocked by the "S&L crooks" he failed to notice a few years back...
...Yet Hill's seductive thesis is badly flawed...
...It had begun, subtly, with competition for deposits from high-interest money market funds in the inflationary 1970s...
...Woody Guthrie tiring the mid-to-late-1980s much of the American Southwest came to resemble the closing scenes of The Last Picture Show, with the prairie winds blowing dry leaves and tumbleweeds past the filmtown's dilapidated stores and shuttered movie house...
...The greener pastures of commercial real estate speculation were now open to them—and they, in turn, were up for grabs by canny developers...
...Not surprisingly, their targets vary...
...These seemingly "costless" financial time bombs would then have to compete—up front—with Defense, Head Start, and so on rather than festering for years before erupting...
...The exuberant greed so often featured in the winning of the West—combined with the rank stupidity of S&L managers weaned in a protective regulatory atmosphere—accounts for the bulk of the losses...
...Cloaked in the mantle of "home ownership," with bases nationwide, the League was able to extract changes that effectively freed S&Ls from the very home-lending mandate that gave them legitimacy...
...For the $5 trillion U.S...
...All three have collapsed, at a cost to taxpayers of over $3 billion...
...196 • DISSENT The SIL Mess By then, the first S&L crisis was already well underway, compounded by Federal Reserve Board Chairman Paul Volcker's 1979 decision to crush inflation by letting interest rates drift to stratospheric levels...
...The psychology worked like this: bankers would lend to dubious projects because developers had had successful track records, while developers would take the bank's confidence in them as a sign that their intuitions were valid...
...Foreigners are amazed that waste on this scale could be allowed to occur...
...The region was simply swept up in a speculative bubble in which greedy developers and dumb bankers reinforced each others' propensity to gamble...
...U.S...
...It's party-time ideology, bereft of accountability...
...Mayer cites Jonathan Gray, a Wall Street researcher who reported to the Federal Deposit Insurance Corporation on American Diversified: "[nth perhaps $500,000 in equity, it destroyed $800 million in insured deposits, a kill ratio of 1,600 to 1. . . . This anecdote is tantamount to a news report that a drunken driver has wiped out the entire city of Pittsburgh...
...Residents of one of George Bush's home states, Connecticut, will "lose" $882 per capita...
...It's difficult to exaggerate the sense of incompetence and decay that the government's near paralysis caused abroad...
...That permission came," conveniently, just weeks after Dad George secured his 1988 election victory...
...It couldn't be revoked without expropriating depositors' funds, wrecking the government's credit globally, and triggering massive runs on remaining S&Ls and banks...
...That sentiment is being assiduously fostered by Congress and the Bush administration in search of politically juicy scapegoats...
...Al too right...
...Count interest payments and those sums will roughly triple...
...The cost of the "Southwest Plan" fire sale has since soared from Wall's estimate of $39 billion in taxpayer losses to over $90 billion...
...With no trace of irony—or any sense of what he was signing—Ronald Reagan called it "the most important legislation for financial institutions in the last fifty years...
...Forcing the hidden costs of loan insurance and guarantee programs out into the open, argues Grundfest, would have an immediate budget impact...
...economy, the S&L mess is a painful if affordable farce...
...These folks were drawn like jackals to the Sunbelt S&Ls in the middle 1980s and doubtless stole far more with their fountain pens than in any pistolero's wildest dream...
...The allegedly rip-roaring capitalism of the whole region has been underpinned by a multibillion-dollar tide of federal cash for dams, water projects, farm supports, interstates, defense plants, and bases...
Vol. 38 • April 1991 • No. 2
