Probe of Rhode Island Crisis Urged
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PROVIDENCE, R.I. — Rhode Island Republicans are urging Gov. Bruce Sundlun to let the federal government conduct an independent investigation of the statewide banking crisis.
Rep. Ronald K. Machtley (R-R.I.) has asked U.S. Atty. General Dick Thornburgh to contact Sundlun and offer to form a federal task force to look into the crisis.
Sundlun closed 45 credit unions, loan and investment firms and banks on Jan. 1, the day of his inauguration, in response to the collapse of the Rhode Island Share & Deposit Indemnity Corp., a private company that insured the 45 institutions.
The closures prevented runs on the institutions, but also froze 300,000 accounts totaling $1.7 billion, leaving Rhode Islanders without access to their money.
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