1.   Both houses use the budget reconciliation process to bolster the thinly capitalized government fund that insures thrift deposits.

2.   Separately, Hawke raised the possibility of a default next year on bonds backed by the fund that insures thrift deposits.

3.   Several Republican leaders have rejected a White House proposal to tap a fund that insures thrift deposits to help cover the increases.

4.   The House and Senate budget packages contain two different plans to rebuild the federal fund that insures thrift deposits.

5.   The fund that insures thrift deposits, called the Savings Association Insurance Fund or SAIF, is seriously undercapitalized just as it has assumed responsibility for future thrift failures.

6.   This would lower the amount they pay for deposit insurance, but it would also threaten the health of the Savings Association Insurance Fund, which backs thrift deposits.