Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Thu, Apr 30 1992 Date: Thu, 30 Apr 92 05:41:14 EDT Message-ID: 04-30 0000 DECISIONLINE: Business Law USA TODAY Update April 30, 1992 Source: USA TODAY:Gannett National Information Network BUSH EXTENDS MORATORIUM: Saying it saved up to $20 billion in red-tape costs, President Bush Wednesday extended a 90-day regulatory moratorium he announced Jan. 28. Bush announced a four-month extension on the moratorium. Though Bush says "over-regulation costs jobs," critics say the moratorium has derailed dozens of health, safety, consumer and environmental rules. GONZALES PUSHES FUNDING: Housing Banking Committee Chairman Henry Gonzales, D-Texas, who said Wednesday, "The cleanup has to be done," is pushing additional funding for the Resolution Trust Corp. back to the floor of the House. Despite causing $70 million to be added to the cost of the savings-and-loan bailout, Congress has refused provide additional funding to close failed thrifts. RTC STOPS CLOSING THRIFTS: The Resolution Trust Corp. has stopped closing sick thrifts because of lack of money. The RTC closes sick S&Ls and pays off their depositors with taxpayers' money, but Congress has cut off funding. The RTC says every day of delay drives up the bailout's cost $2.5 million because sick thrifts pile up losses as long as they're open. Expected total cost of the bailout: $200 billion. COLLEGE BOUND FILES CHAPT. 11: College Bound, the college-test preparation service that is the subject of an SEC suit, filed for Chapter 11 bankruptcy protection Wednesday. Last week, the SEC filed a lawsuit against College Bound for allegedly overstating its financial results and suspended trading in its stock for 10 days. Tuesday, a federal judge froze the personal assets of its founders, George and Janet Ronkin. BLACK CHOSEN TO MAKE BID: Managers, unions and creditors of New York's Daily News, which has been in Chapter 11 bankruptcy protection since December, have chosen Conrad Black, a Canadian publisher, to get the first crack at coming up with a deal to buy the tabloid. Black, who owns about 200 small dailies and weeklies in the USA as well as London's Daily Telegraph and The Jerusalem Post, has until May 26 to make a deal. CONTRACT TALKS RESUME: The United Steelworkers of America and the Ravenswood Aluminum Corp. resumed contract negotiations Wednesday in an effort to end an 18-month lockout at the company's West Virginia facility. The meeting was the first between the two sides since July 1991, and came a week after former chairman and chief executive officer R. Emmett Boyle was ousted by the company's board of directors. BILL AIMED TO HELP AEROSPACE: Lawmakers, led by House Majority Leader Richard Gephardt, D-Mo., launched a bid Wednesday to pass legislation aimed at stimulating the aerospace industry, which has been hurt by the recession, cuts in defense spending and rising foreign competition. The proposed legislation, estimated to cost more than $1 billion, involves a five-step approach to reinvigorate the industry. CIGARETTE TAX JUMPS: The cigarette tax in Wisconsin will jump 30 cents a pack Friday, under a budget adjustment bill signed Wednesday by Gov. Tommy Thompson. In the bill, 161 items were vetoed, including $2 million for pedestrian and bike projects. Restored: $800,000 for new testing system for public schoolchildren. NYC TRANSIT STRIKE AVOIDED: In New York City, the transit workers' union reached a tentative pact Wednesday with the MTA, averting a strike by 32,000 bus and subway workers. The union president said he'll urge workers to the 38-month contract, which includes a $5 million advance for its health and benefit fund. COSENTINO PLEADS GUILTY: Ex-Illinois Treasurer Jerome Cosentino pleaded guilty Wednesday to masterminding a million dollar bank fraud scheme to keep his troubled trucking business afloat. He acknowledged shifting over $1 million between bank accounts in 1988 and 1989 to make it appear the business had more cash than it actually had. SANTA CRUZ LAW TO TAKE EFFECT: In California, Santa Cruz's new "looks law" is set to take effect. The law prohibits employment or housing discrimination based on height, weight, sexual orientation or physical characteristics. Twenty-two churches oppose the part of the law regarding homosexuals. STATE TO STUDY INSURANCE: A bill in Colorado setting up a study of health insurance for all state residents was approved Wednesday by Gov. Roy Romer. The goal of the study is to set up universal health care with policies that move with people from job to job and are administered by private insurance firms. Target date for coverage is Jan. 1, 1995. ZONING CHANGES NULLIFIED: In Hilo, Hawaii, a judge Wednesday nullified zoning changes that would have allowed Hamakua Sugar Company to sell 3,000 acres of Waipio Valley land to help pay $100 million in debts, saying public wasn't duly notified of their application. Company President Francis Morgan said they plan to refile. Business Law Editor: Jason P. Smith. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. 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