They do not include the cost of the deals struck in 1988 for the sale of more than 200 institutions before the bailout law was passed.

Act II of the savings and loan fiasco actually began the moment the bailout law was passed in August 1989.

They said that the bailout law, signed on Aug. 9, prohibits the agency from selling any asset at less than 95 percent of its current appraised value.

The current bailout law raises funds according to a costly "borrow and spend" philosophy that adds billions to the bailout cost in interest.

The Treasury Department maintains that the procedure still keeps the agency within the $50 billion limit on spending set in the bailout law.

The bailout law forced savings and loans to write off good will faster and depleted the capital cushion of many institutions.

Savings banks can engage in such practices, which were prohibited for savings and loans by the 1989 bailout law.

It is charged with regulating the industry in accordance with rules set forth in the bailout law.

Less than a week after it adjourned on Oct. 28, a loophole in the bailout law was discovered and the money provided.

Under the bailout law, the Government can seize institutions in such a condition.