Beyond the problems of the savings units, several challenges now face American home builders.

It is now the largest savings unit in Government hands.

So far, banks have been the biggest buyers of savings units.

But the savings unit was also a victim of changes in Government regulations.

In most cases, a failed savings unit's deposits will be transferred to a buyer, he said.

Capital allows a savings unit to expand and make loans to help a local economy grow.

The trouble came when accountants said a savings unit was healthy, only to have it fail a short time later.

The effect of the changes was to mask the growing problems at many savings units.

Some 97 percent of all banks and savings units were profitable in the quarter.

The savings unit's failure is likely to cost taxpayers $1 billion.