"The quality of the banking industry's real estate loans is continuing to decline," said the agency, which insures deposits at the nation's financial institutions.

It also insured deposits of loan and investment companies, which were allowed to make risky loans to businesses.

Congress has pledged to stand behind all insured deposits no matter what happens.

The Senate passed a $7.5 billion package to rescue the fund that insures deposits in thrift institutions.

But why should we insure deposits that are being used for interest rate speculation?

They argue that Federal deposit insurance, which insures deposits up to $100,000, applies only to banks and not to their holding companies.

Only once in 1991, when equity level dipped below 1.23 percent, has the Board charged credit unions a premium to insure deposits.

Insured deposits of €100,000 or less would not be affected.

The agency typically insures deposits of $100,000 or less.

The $17.2 billion unit would switch to the fund that insures deposits at commercial banks.