November 16, 1991

Two studies commissioned by the Government say the Federal Deposit Insurance Corporation, now the world's largest employer of private lawyers, has been wasting a significant portion of its outside legal expenses, which are expected to reach $700 million this year. The studies found, among other things, that the F.D.I.C. and its affiliated agency, the Resolution Trust Corporation, failed to use competitive bidding or to negotiate steep-enough discounts or fixed fees when hiring lawyers, even though many lawyers are eager for the work. The lawyers were hired to help the Government clean up the problems caused by the failure of banks and savings and loan institutions. Once on the job, lawyers earning $100 an hour or more were allowed to perform routine work, like reviewing bills, that could have been done by clerks, the studies say. The reports did not name specific law firms in these instances.

International 2-5 HOPE FOR SOLUTION IN HAITI Haitian lawmakers and a delegation from the Organization of American States have agreed on steps toward restoring constitutional government. Officials said the process might pave the way for the return of Haiti's deposed President. Page 3

The Cajun music still rockets through the night in clubs from Bourbon Street to Breaux Bridge, but there's no big fun on the bayou these days in Louisiana. One day before Saturday's runoff for governor between former Gov. Edwin W. Edwards and State Representative David Duke, a former Ku Klux Klan leader and neo-Nazi, this is a state full of rage, fear and frustration. Instead of politics as loopy theater, it's politics as primal scream.

After weeks of criticism that it had been slow to move against the Bank of Credit and Commerce International, the Justice Department today announced the indictment of two bank officials and a major shareholder on fraud and racketeering charges. A Federal grand jury here indicted Aga Hassan Abedi, 68 years old, a resident of Pakistan who was the bank's principal founder and president; Swaleh Naqvi, 57, the bank's acting president who is believed to be in Abu Dhabi, and Ghaith R. Pharaon, 50, a Saudi Arabian who was a large shareholder in the bank. If found guilty, each of the men could receive a maximum penalty of 30 years in prison and a $750,000 fine.

Credit-Card Interest Debate Although the move to cap interest rates on credit cards is sweeping through Congress, it looks as if the measure will not be enacted. Page 33. Step Toward Haitian Solution Haitian lawmakers and an outside diplomatic delegation have agreed on a process to restore constitutional government to Haiti. Page 3. Decision on Police Raises An arbitration panel rules that New York City police officers will have to accept contract concessions to help pay for wage increases. Page 21.