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University of Nobraska-Unttoln
Vol. 82, No. 73
..
State oCklais reviewed proposals for the disposal
of Commonwealth Savings Co. before a crowded
Pershing Auditorium Monday night 4 "
Interim state Banking Director John Miller told
.depositors that even if a sals of the insolvent
institution is developed in the near future, they
should not expect to get a full return of all of their
funds. V " .
"Based upon what we have ... we should hops that
at the time the sale b consummated, there'd be an
immediate return to each account of 13,000 to
$10,000. And I'm sorry to tell you that," Miller said
The state would also pursue litigation against the
principals of Commonwealth in a civil lawsuit, and
will seek to collect on a surety bond issued against
Commonwealth officials. vr "::-...:..
Any funds leftover for insurance of Common
wealth's deposits by the Nebraska Depository
Insurance Guaranty Corporation also would be
divided among depositors, and if those measures
still dont give depositors a full return of their
accounts, Miller said the banking department may
die a lawsuit against the state of Nebraska.
Such action would require the banking depart-,
ment to choose a lawyer completely independent 6t
state control to pursue a claim against the state,
and possibly against Miller and special. assistant'
attorney general David Domina themselves, Miller
said.
Miller also discussed what the Banking depart
ment has been doing for the past three weeks for
set
Committee
everal reports are currently under crersaration
including discussion on the actions of public .
officials in relation to Commonwealth, and possible " :
measures to Insure that a situation similar to .
Commonwealth's insolvency does not occur in the
future. ..... -, .
Domina explained that the nature of Common-
: wealth's problems makes the institution particulary
difncp.lt to sell. He and Miller reviewed the three
' primary options for the ultimate dlrposal of Common- '
' wealth,-"- "- . . 'v -t
-The first, which Domina described as the "most
optimistic," would involve the state investing
, enough funds into Commonwealth to to guarantee
both its assets and its liabilities, the state funding :
plan would ofter a return to depositors of a good 1
s issue reallocation reports
Two campus committees in charge of reviewing
recommended program changes at UNL have com
phtsd Cr;r reports and have forwarded them to
. .-JUIL Chancellor Martin Masssnale. . :
The reports stem from recommendations on pro-
C. m j IjCldtj Vi.e cancccr3." -
..- v. , -i-jf. Vwttvvv j-mA kiad ;
stae in the ongoing process of identiing tivo per
cent of HNLa KZi-Lj general fund budget for real
location within the university, v ... : . " ' ' ' : '..-rr .
Massengale said the advisory committee reports
.from the Academic Banning Committee and therf
Support Evaluation Committee will be used along
with recommendations made by UNL vice chancel- r
lors in developing the chancellor's final recommen-
dations for the lleclnlccrrus. Tliei?'recommenrEr
' ;- dations will be sent toth2;lU Board cf , PegentsMrE:
' - ; The cemmittesrepcrtaSsasd fcyUNL cfSeiab-
l!ssday, dtvr suppsrt fr rri'arproram'misl6n35;: ;
' &A b w vV&Vvi t J V4 ll ill VV A
t TI'.2 AFC repert ni;!: c'dnst consolidating the . ,
'. transferrfcl the Department cf Constrcction Man-
content to tl;e Collet ci Aneuiture," cmtnating ;
the Bureau cf Business Ecsearch and Chddon film
Tl:eatreJ.ccnsslliatir.g the Departments cf Classics : ;- d
and Mc-iern Languages, eliminating the" Analytical'
Service Lroratery, replacing elective laboratory
experiences Li e rieulture and changing the report-
- ing structure fcr the Nebraslai Forest Service.
It al:o advi:3 Cat there be f :t! r ttty before
- - arri c:;:r3 rz -".:.;Ht re""" f f -f rz
- The HC report advises against proposab for..
eliminating petitions in counseling and personnel
and risk management; opposes transfer of three
full-time advising positions to Intercollegiate Pro-
calls for future study of a student develop-
if center 'and recommends cgainsf proposed
iterations in maintenance, custodial and physical
', plant cervices, rr z;:9r:r.-:
, "-The HC report also vfs'egainsfproislsfbfr
. eliminating pcsitiorJnjcojlmseli
"EsdAmasagemcstB?PPPses2tr
Z grama; caTj-forfaturestudycf a:Etudentdevlcp-Y-
mehf 'center :and "-recommends . against -.proposed
alterations in maintenance, custcdialand phjtical
plast servtees.-' - -s -: Z".:".:.zir?rzr
.The CSC report' also advises" ag.ainsf -proposti
changed in' funding for greek affairs and interna-jr
tional educational servtees.
fat ti0 '
A complete listing of the committees recommen-
53 appears on page 5,. zEr:-rz
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portion cf their deposits, and would be a relatively
brief process.--"" V '
But the problem of constitutional barriers and
political opposition might make such a solution
impossible to achieve, Domina said
The second proposal the "deposit maintenance"
plan, was termed the most realistic by Domina and
Miller. It would Involve a private entity infusing a
significant amount of capital into the bank, while its
assets are partially liquidated The state would1
invest funds to guarantee a certain base level of
deposits, and the new banking Institution would
re-open fully Insured
Drawbacks of the plan Include public scepticism
about the motives of the private buyer, and the
probability that depositors , would net be fully
reimbursed to the level of their deposits. H :
The third option would involve simply liquidiHg
Commonwealth's assets, principally Its real estate
holdings. Thb would be a "worst case" scenario
where the state as Commonwealth's receiver would
do nothing more than sell Its assets at a market
value, severely depressing the local real estate
market for an Indeterminable amount of time.
Domina terms the proposal "abominable."
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? Mere, than people-gathered tlczlrj
; rdlt at rers!dng Aadltcriam far a pallia
3 forum cn tiie recranlzatisa and sale cltem
ctfyes cf CcmmcnTraal2ii Carlzgs Co
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Limiting the number of polling places for.
ASUN elections sparks controversy among
student leaders ... ... . ..... . . ..... .Pa; 3 0
A 2-year-old Infant that died last weak
N2C's "Overnight" is eulogized by Jeff Wil
cox . . . . ; .-i "1 . . ;i .. . . . ...... Pg3 13
.;: Member -bf'-thd Smith 10 flag iootball
team discuss . their upcoming trip to New
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