The Treasury Department's Office of Thrift Supervision regulates Federal and state-chartered savings and loan associations, as well as Federal-chartered savings banks.

The Treasury had sought to combine several agencies that regulate banks and savings and loan institutions, so as to save money for the Government and reduce the regulatory burden on financial institutions.

The head of the agency that regulates federally insured savings institutions said today that the cases of 259 "grossly insolvent" institutions would be resolved by 1990 at a cost of $17.4 billion.

The most significant proposal is now in a comment period before the Securities and Exchange Commission and the agencies that regulate the banks and savings and loans.

The agency that regulates savings and loan associations said on Monday that it was drafting new rules to cover the release of customers' financial records by federally chartered savings institutions.

Bank Commissioner, Office of the State Regulates all state-chartered banks and trust companies, savings and loan companies, mortgage businesses, and money transmitters.

For many years, regulating savings and loan associations was not considered as pressing an issue.

The Federal Office of Thrift Supervision, which regulates savings and loans, refused to settle with Jones, Day unless Mr. Schilling also accepted a consent order.

The matter is now under consideration before T. Timothy Ryan Jr., director of the Office of Thrift Supervision, which regulates savings and loan institutions.

In an attempt to encourage more lending, the four Federal agencies that regulate banks and savings and loans are preparing new rules that would make it cheaper for institutions to make home-construction loans.