The industry has thus lost almost $14 billion over the last 12 months, as both healthy and sick institutions have been drained of precious resources.

"Such panics can themselves cause a crisis for even healthy institutions."

That is not likely because of the added cost burden it would put on healthy institutions.

Even healthy institutions are losing deposits in many parts of the nation.

"Why should we risk the solvency of the healthy institutions?"

Moreover, the large number of healthy institutions have split the association.

A few private schools could be forced to merge with healthier institutions before the situation improves.

Other critics might be healthier institutions and those already seized.

The need to build healthy institutions comes into play as well.

Some industry executives said the Bush proposal would save money for healthy institutions.