High Court Enters S&L; Fray: The Supreme...

High Court Enters S&L; Fray: The Supreme Court has agreed to decide whether financial institutions can deduct millions of dollars as losses by essentially swapping mortgage loans of near identical value. The decision could affect at least five cases currently before the court and dozens of other savings and loans nationwide. The nation’s thrifts have millions of dollars riding on the court’s interpretation of a 1980 memorandum by the Federal Home Loan Bank Board, which appeared to legalize the mortgage loan exchanges as a cost-cutting step available for financially ailing thrifts.