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Home > News & Events > Speeches and Testimony
Speeches and Testimony
Donna Tanoue
Federal Deposit Insurance Corporation
H.R. 10, Financial Services Act of 1999
before the
Committee on Banking and Financial Services
United States House of Representatives
10:00 a.m. February 12, 1999
Room 2128, Rayburn House Office Building
Mr. Chairman, Mr. LaFalce, and members of the Committee, I appreciate this opportunity to present the views of the Federal Deposit Insurance Corporation (FDIC) on H.R.10, the Financial Services Act of 1999, and related issues. I commend you, Mr. Chairman, for acting quickly in the 106th Congress and beginning formal deliberations on how best to strengthen and improve the financial services industry. H.R. 10 represents a positive legislative initiative with which to proceed in this important endeavor.
The FDIC has been and remains supportive of efforts to modernize the nation's banking and financial systems. Since its creation under the Banking Act of 1933, the FDIC has worked to ensure the safety and soundness of the banking system and to assure depositors that their insured deposits are safe. Consistent with its broad perspective on public-policy issues, this concern for the safety and soundness of insured depository institutions underscores the FDIC's approach to financial modernization.
The financial markets have changed dramatically since the 1930s when many of our nation's laws governing the financial system were written. Improvements in information technology and innovations in financial markets have rendered the current system increasingly obsolete and unable to provide the full range of financial services required by businesses and individual consumers in today's global economy. Modernization of the financial system is not only desirable, but necessary, to enable the financial services industry to meet the challenges that lie ahead.
The FDIC has long held the view that the maintenance of healthy and viable depository institutions requires that these institutions generate sufficient returns to attract new capital in support of normal growth and expansion into new areas. To achieve these goals, insured depository institutions must have the ability to compete on an equitable basis with other business enterprises, and their products and services must be permitted to evolve with the marketplace in a manner consistent with safety and soundness. Equally important, the legitimate needs of consumers must be addressed. As part of any effort to modernize the financial system, the potential effect on small communities, isolated markets, and customers of insured depository institutions must be considered.
H.R. 10 repeals key Glass-Steagall restrictions and authorizes holding companies and other affiliates of banks to engage in a wider range of securities and insurance activities. These represent important steps toward achieving the goals of financial modernization. In addition, I commend you, Mr. Chairman and the co-sponsors of H.R. 10, for including a repeal of the Savings Association Insurance Fund (SAIF) Special Reserve.
Although H.R. 10 is a significant start toward financial modernization, the FDIC believes it can be improved. First, although H.R. 10 would eliminate the SAIF Special Reserve, it does not mandate a merger of the SAIF and the Bank Insurance Fund (BIF). Second, the proposed legislation unnecessarily favors the holding company affiliate structure over the bank operating subsidiary structure as the means by which banking organizations could expand into new financial products and services. Third, the banking and commerce provisions in the bill do not recognize adequately either the track record of unitary savings-and-loan holding companies in this area or foreign and domestic developments in the financial marketplace. Finally, in implementing a greater degree of functional regulation, the bill reduces the authority of the federal banking regulators to determine the appropriate products and services of banks.
H.R. 10 would eliminate the SAIF Special Reserve, and the FDIC applauds this provision. The Special Reserve was created by the Deposit Insurance Funds Act of 1996 (the Funds Act). Under the Funds Act, on January 1, 1999, the FDIC was required to establish a Special Reserve comprised of SAIF funds above the dollar amount required to meet the 1.25 percent Designated Reserve Ratio (DRR) at year-end 1998. The Special Reserve can only be drawn upon if the reserve ratio of the SAIF is less than 50 percent of the DRR and is expected to remain so for four consecutive quarters.
As required by law, the Special Reserve was established on January 1, 1999. On the basis of September 30, 1998 data, approximately $1 billion was segregated into the Special Reserve, thus lowering the SAIF reserve ratio from 1.39 percent to 1.25 percent. The amount of the SAIF Special Reserve will be adjusted to reflect year-end figures when those figures become available in March 1999.
Ironically, if the SAIF Special Reserve is not eliminated, the Special Reserve could lead to an assessment rate disparity between the BIF and the SAIF, thus recreating the very same circumstances the Funds Act - which levied a $4.5 billion special assessment on SAIF-assessable deposits - was intended to eliminate. As a result of the Special Reserve, unanticipated failures of banks and savings associations, or faster-than-expected growth in insured deposits, could cause the reserve ratio of the SAIF to drop below the DRR. Any drop in the SAIF reserve ratio below the DRR likely would precede the reserve ratio of the BIF falling below 1.25 percent, because the SAIF would be starting at a lower reserve ratio. When a fund's reserve ratio drops below the DRR, the FDIC is required to increase deposit insurance assessments to restore the fund's reserve ratio to the DRR. Thus, the FDIC most likely would be required to raise SAIF assessments before instituting a comparable increase in BIF rates, recreating a rate disparity between the two funds. This disparity in assessment rates could arise even though the actual amount of funds available to support the SAIF, which would include the Special Reserve, might exceed the amount of funds necessary to meet the DRR.
Differences in deposit insurance assessment rates among institutions should reflect differences in risk posed to the insurance funds, not artificial distinctions, such as those that existed before the passage of the Funds Act. Higher assessment rates for SAIF-insured deposits resulted in the shifting of deposits from the SAIF to the BIF and other inefficiencies that were detrimental to virtually all parties. Such market distortions have an economic cost as institutions devote resources to countering artificial statutory distinctions. Thus, the FDIC strongly endorses the elimination of the Special Reserve as outlined in H.R. 10.
Although the Special Reserve is a recent creation, much of H.R. 10 deals with modernizing laws that have become outdated with the passage of time. However, there is one relic of the statutory framework established after the Great Depression that the bill does not address - two separate deposit insurance funds. The arguments for a merger of the BIF and the SAIF are persuasive, the timing is optimal, and the administrative and logical steps required to bring it about are not complicated or difficult.
The FDIC was established in 1933 and the Federal Savings and Loan Insurance Corporation (FSLIC) was established in 1934. Throughout its history, the FDIC always has insured some savings institutions, notably state-chartered savings banks, but for the most part it has insured commercial banks. The FSLIC insured savings-and-loan associations (S&Ls). The SAIF was established in 1989, in the aftermath of the savings-and-loan crisis of the 1980s and the insolvency of the FSLIC, to succeed the FSLIC fund and the FDIC fund was renamed the BIF. Both funds were put under the management of the FDIC.
In the 1930s, there were substantial differences between commercial banks and S&Ls. In general, S&Ls were mutual institutions that primarily offered savings accounts and home mortgages for consumers. Because their charters permitted limited activities, they were not allowed to offer checking accounts, consumer loans, or commercial loans. Indeed, their loans were virtually all long-term fixed-rate residential mortgages. Commercial banks, on the other hand, served mostly commercial customers. More than two-thirds of bank deposits were demand deposits and banks made very few residential mortgages. Thus, there were significant differences in the institutions insured by the FDIC and the FSLIC when the agencies were created.
Over time, the distinctions between banks and thrifts have become blurred. Each has entered what was once the other's domain. On the asset side, the portfolios of all but the largest banks often look very similar to the portfolios of thrift institutions. Both offer essentially an identical array of deposit accounts. From the point of view of the insured depositor, there is virtually no difference between banks and thrifts.
Not only have the banking and thrift industries become more similar over time, but the composition of who holds SAIF-insured deposits has changed as well. The name Savings Association Insurance Fund connotes a fund that insures savings associations. When it was established, this was indeed the case. Virtually all SAIF-insured deposits were held by SAIF-member thrifts. However, over the last decade, this has changed dramatically. As of September 30, 1998, commercial banks (35.1 percent) and BIF-member savings banks (8.1 percent) held over 40 percent of all deposits insured by the SAIF. Indeed, two of the five largest holders of SAIF-insured deposits are First Union National Bank and NationsBank N.A. The name Savings Association Insurance Fund has become a misnomer. The SAIF has become a true hybrid fund.
If the only problem with having two insurance funds is that one is misnamed, there would be little reason to merge the funds. However, there are substantive reasons why the two funds should be merged. First, as I have previously stated, the BIF and the SAIF provide an identical product - deposit insurance. Yet, as long as there are two deposit insurance funds, whose assessment rates are determined independently, the prospect of a premium differential exists. When an identical product is offered at two different prices, consumers - in this case, banks and thrifts that pay deposit insurance assessments - naturally gravitate to the lower price. This phenomenon was observed before the passage of the Funds Act when some SAIF-insured institutions successfully shifted deposits to BIF insurance. Despite moratoriums, entrance and exit fees, and bans on deposit shifting, market forces ultimately prevailed. Inefficiency and waste were introduced as institutions expended time and money trying to circumvent restrictions that prohibited them from purchasing deposit insurance at the lowest price. Although the Funds Act led to the elimination of the premium disparity that then existed between the BIF and the SAIF, a merged fund would guarantee that such a disparity would not recur in the future. It would have a single assessment rate schedule whose rates would be set solely on the basis of the risks that institutions pose to the single fund. The prospect of different prices for identical deposit insurance coverage would be eliminated.
Second, a merger of the funds would help mitigate the increased concentrations of risk facing both the SAIF and the BIF. Since its inception, the SAIF has insured far fewer, and more geographically concentrated institutions than the BIF has insured. Consequently, the SAIF has faced greater long-term structural risks and has been subject to proportionately greater losses from the failure of a single member. Although interstate merger activity may have reduced the geographic concentration of SAIF deposits somewhat, recent merger activity has increased the relative size of the largest members of either fund. As of midyear 1990, the three largest holders of SAIF-insured deposits held 8.7 percent of these deposits, and the three largest holders of BIF-insured deposits held 5 percent of these deposits. As of September 30, 1998, that figure was 13.3 percent for the SAIF and 10.1 percent for the BIF. In a combined insurance fund, the three largest institutions would hold 9.3 percent of insured deposits.
Finally, a merger of the funds also would result in lower administrative costs to the FDIC and to approximately 900 institutions that hold both BIF- and SAIF-insured deposits (Oakar deposits) that must be tracked and assessed separately. Although these costs may not be large in absolute dollars, they represent wasted funds.
Instead of providing for a merger of the funds, H.R. 10 would require the FDIC to undertake a study of, and report to the Congress on, the adequacy of the deposit insurance funds in light of ongoing consolidation in the industry and the possible merger of the funds. The study must include the FDIC's plans for merging the BIF and the SAIF, as well as an estimate of the costs of a funds merger and how those costs may be passed on to the industry, particularly SAIF-members. The report to the Congress would be due within nine months of enactment.
FDIC staff has examined whether there are significant obstacles confronting the FDIC in effecting a merger of the BIF and the SAIF. The primary goal was to identify any initiatives that should be undertaken by the FDIC to ensure that a merger could be implemented in a timely manner. After considering the broad range of possible legal, accounting, logistical and technical issues that may arise in implementing a merger of the funds, the staff concluded that there were no major obstacles to a timely merger of the insurance funds. Moreover, as noted above, a merger of the funds would reduce the regulatory burden on institutions that hold both BIF- and SAIF-insured deposits and lower administrative costs to the FDIC.
In addition, the FDIC has begun a study of the effects of industry consolidation and megamergers on the risks to the BIF. The study analyzes the probability of the BIF becoming insolvent under various assumptions about the concentration of the banking industry. It includes an analysis of historical trends in consolidation and a review of the differences (in terms of BIF losses) between large and small banks. The main part of the analysis is a projection of the BIF under various consolidation scenarios, including a future with megabanks. We expect to complete this study by June. However, regardless of its outcome, it is difficult to see how this study could lead one to conclude that the funds should not be merged. Even if the study concludes that megabanks will not appreciably increase the risk to the funds, eliminating the possibility of future premium disparities and eliminating wasteful administrative costs for the FDIC and depository institutions are themselves sufficient reasons to merge the funds. If the study concludes that megabanks have increased risks, that is merely one more reason to merge the funds.
In summary, the BIF and the SAIF both are capitalized fully, with identical assessment rate schedules, and the members of both funds are healthy and profitable. Upon elimination of the SAIF Special Reserve, the reserve ratio of the SAIF would be restored to reflect its true level, and the BIF and the SAIF would have comparable reserve ratios. A merger of the two funds under these circumstances would not result in a material dilution of either fund, and would strengthen the deposit insurance system. This is an excellent time to merge the funds and eliminate a weakness in the federal deposit insurance system. It would be unfortunate if the Congress, while modernizing the rest of our statutes governing the financial services industry, left the anachronism of two deposit insurance funds in place.
H.R. 10 would repeal key Glass-Steagall restrictions that inhibit member-bank affiliations with securities underwriters and would authorize the creation of financial holding companies (FHCs). These holding companies and their nonbank subsidiaries could conduct a wide range of financial activities, including the full range of insurance and securities activities. These expanded activities could not be conducted by the direct subsidiaries of banks. The new test for permissible activities for an FHC would be "financial in nature or incidental to such financial activities." H.R. 10 would modify the Bank Holding Company Act to include a list of activities that would be so classified.
The bill permits FHCs, but not national banks through their direct operating subsidiaries, to offer, on a limited basis, additional services and products that have not yet been found to be financial in nature. However, the FHC must reasonably believe that such activities are financial in nature. Referred to as a "developing basket," these activities may not exceed 5 percent of any of the following: the holding company's gross revenues; the holding company's total assets; and the holding company's total capital.
The bill would expressly authorize a subsidiary of a national bank to engage in any activity classified as financial in nature, in an agency capacity, but not as principal, with the approval of the Comptroller of the Currency, if the bank and any depository institution affiliates are well-capitalized and well-managed. Additionally, at the time the bank first acquires control or an interest in a subsidiary, in order to conduct the new financial agency activity, the bank and any affiliated depository institutions must have a satisfactory Community Reinvestment Act (CRA) rating. The bill also would authorize a well-capitalized national bank to underwrite within the bank or in a direct subsidiary of the bank certain limited obligation or revenue bonds on behalf of states or their political subdivisions, including public agencies or authorities.
The FDIC has gone on record as supporting the repeal of the Glass-Steagall restrictions and the expansion of permissible financial activities, subject to proper safeguards to protect the safety and soundness of insured depository institutions and the federal deposit insurance funds. The FDIC also endorses the developing basket provision of H.R. 10 that would allow FHCs to offer products and services that are financial in nature in the estimation of the holding companies. These provisions advance the goals of financial modernization, consistent with safety and soundness. However, there is no reason to withhold from banks the option of conducting the full range of expanded financial activities, including activities conducted as principal, through bank subsidiaries. H.R. 10 should be revised to permit the greatest flexibility and freedom to financial firms in deciding how best to organize themselves.
The question as to whether new activities for financial institutions should be authorized for direct subsidiaries of banks or be conducted only in nonbank subsidiaries of bank holding companies has emerged as one of the more critical issues to be decided in the current debate over financial modernization. Aside from its competitive implications, the resolution of this issue is particularly important because, to a large extent, it will determine the future legal and operational structure of diversified financial service providers in the United States.
The FDIC has studied this issue closely for a long time and it is our judgment that both national and state-chartered banks should have the freedom to choose the corporate structure that best suits their business needs for conducting activities not directly permissible to the bank itself, provided certain safeguards are in place to protect the bank, the safety and soundness of the banking system, consumers, and the taxpayer. The necessary safeguards include: (1) applying principles such as those contained in Sections 23A and 23B of the Federal Reserve Act to transactions between a bank and its operating subsidiary, with the appropriate principles to be determined by the federal banking agencies; (2) requiring that the bank's investment in the operating subsidiary be deducted from regulatory capital; (3) requiring that after this deduction, the bank be well-capitalized; and (4) requiring that the corporate separateness of the bank be protected. In addition, the adoption of real-time reporting requirements should be considered for intracompany transactions under certain conditions, analogous to SEC requirements. With these safeguards in place, we see no compelling public-policy reason to mandate a particular organizational form.
From a safety-and-soundness perspective, both the bank operating subsidiary and the holding company affiliate structures can provide adequate protection to the insured depository institution from the direct and indirect effects of losses in nonbank subsidiaries or affiliates. Some have argued otherwise - that the bank holding company structure provides greater safety-and-soundness protection than does the operating subsidiary structure. As the deposit insurer, we have examined this issue closely and we disagree. Indeed, from the standpoint of benefits that accrue to the insured depository institution, or to the deposit insurer in the case of a bank failure, there are advantages to a direct subsidiary relationship with the bank. The properly insulated operating subsidiary structure and the holding company structure can provide similar safety-and-soundness protection when the bank is sound and the affiliate/subsidiary is financially troubled. However, when it is the bank that is financially troubled and the affiliate/subsidiary is sound, the value of the subsidiary serves to directly reduce the exposure of the FDIC. If the firm is a nonbank subsidiary of the parent holding company, none of these values is available to insured bank subsidiaries, or to the FDIC if the bank should fail. Thus, the subsidiary structure can provide superior safety-and-soundness protection. Appendix A to this testimony contains an in-depth analysis of this issue.
The FDIC certainly has had experience where the placement of an activity in a holding company affiliate has raised the cost of a resolution. For example, in many instances in the 1980s and early 1990s, data processing activities were conducted in a holding company affiliate. This gave the holding company bankruptcy trustee considerable leverage to extract fees from the bank receivership that the holding company would not have received had the data processing activities been conducted in the bank.
From a public-policy perspective, however, not all decisions should be dictated by savings to the deposit insurance fund at the time of bank failure. For example, there may be legitimate business reasons to place a data processing unit that is serving a number of different sister companies in a separate holding company affiliate. Similarly, it may be cheaper for a holding company to raise capital - thus benefiting insured banks - if nonbank activities are placed in holding company affiliates, rather than in bank subsidiaries where the entire net worth of the subsidiaries would be subordinated to depositors and the insurance fund. Thus, despite the fact that the bank subsidiary mode of organization provides certain advantages at the time of bank failure, we believe it is important that banks have a choice of organizational structure.
In addition to safety-and-soundness issues, some have argued that banks have a lower net marginal cost of funds than nonbanks because of a perceived federal subsidy from deposit insurance and access to the payments system and the Federal Reserve discount window. Further, it is argued that the ability of institutions to pass a net subsidy from the federal safety net is easier under a bank subsidiary structure than under the holding company structure. Thus, the argument continues, activities conducted in bank subsidiaries are subsidized, resulting in an expansion of the federal safety net. For well-capitalized banks, the evidence shows that if a net marginal funding advantage exists at all, it is very small.
Setting aside the issue of whether a marginal safety-net subsidy exists and its magnitude, it is useful to consider the channels through which banks may have an opportunity to transfer a subsidy beyond the parent bank. First, banks could transfer the subsidy through capital infusions to their direct subsidiary, or by routing dividends through their holding company to an affiliate. Second, banks could extend loans or engage in the purchase or sale of assets at terms that favor their subsidiary units. Yet, in practice, regulatory safeguards for operating subsidiaries, such as those discussed above, and existing safeguards for affiliates, such as Sections 23A and 23B of the Federal Reserve Act, would inhibit a bank from passing any net marginal subsidy either to a direct subsidiary or to an affiliate of the holding company.
We also would note that forcing banks to conduct insurance and securities activities through holding company affiliates might be particularly burdensome to small banks that may not have holding companies. These banks would be required to set up a holding company structure in order to conduct new activities, or in some cases to continue to conduct existing activities. With increased competition in the banking industry, we need to be especially cautious about putting unnecessary regulatory burdens and costs on community banks.
The financial modernization debate also encompasses the issue of whether banking organizations should be allowed to affiliate with commercial enterprises. Both the benefits and risks of mixing banking and commerce have been debated for many years. While there is no hard evidence that combinations of banking and commerce are harmful, there is no hard evidence that they are beneficial, either. Nevertheless, foreign and domestic marketplace developments suggest that combinations involving banking and commerce are becoming more numerous. Appendix B to this testimony discusses the mixing of banking and commerce in the United States in more detail.
H.R. 10 allows insurance companies, securities firms, and other firms that currently are not a bank holding company or a foreign bank that owned or controlled entities engaged in nonfinancial activities as of September 30, 1997, and became FHCs after enactment, to retain such ownership or control, subject to a "grandfather" provision that is limited in duration and volume of activities. An FHC could derive up to 15 percent of its annual gross revenues from nonfinancial activities of its own, or of its subsidiaries other than depository institutions, and could not increase such activities through merger or consolidation. The grandfather provision would have a duration of ten years, with possible individual extensions of up to five years.
H.R. 10 grandfathers for perpetuity existing unitary savings-and-loan (S&L) holding companies and those companies that had filed an application to become a unitary S&L holding company as of October 7, 1998. A unitary S&L holding company controls only one savings association subsidiary, which must meet the Qualified Thrift Lender (QTL) test. Unitary S&L holding companies may engage, directly or through their non-thrift subsidiaries, in any activities that do not threaten the safety and soundness of their subsidiary savings association or do not have the effect of enabling a savings association to evade applicable laws or regulations. Beyond these general provisions, there are no limitations on the scope of permissible activities of unitary S&L holding companies. Thus, unitary S&L holding companies generally are permitted to engage in activities closely related to banking, general securities underwriting and dealing, other financial services, real-estate investment and development, and commercial and industrial enterprises.
Under H.R. 10, new unitary S&L holding companies, whose applications were filed after October 7, 1998, could engage in all activities classified as financial in nature, but not in nonfinancial activities. This provision of the bill would place limits on a vehicle that has enhanced financial modernization without causing significant safety-and-soundness problems. Commercial companies historically have not been a source of risk to the thrift industry. For example, in 1995, the Office of Thrift Supervision reported to the Congress that unitary S&L holding companies, rather than causing harm to their subsidiaries, had in fact provided a source of strength to them in times of need. Moreover, the difference in the grandfather provision would create another class of institution that has no basis other than historical accident. Creating differences between otherwise identical institutions on the basis of arbitrary dates does not make economic sense.
Placing activity restrictions on unitary S&L holding companies would ignore recent developments concerning banking and commerce in the global financial marketplace. One such development is the 1998 merger of Daimler-Benz, Germany's biggest industrial group, with Chrysler Corporation to form DaimlerChrysler. Germany's Deutsche Bank owns slightly more than one-fifth of the stock of the former Daimler-Benz and was active in the merger discussions. Soon after the merger was consummated, DaimlerChrysler announced it would combine its global services operations, such as automobile leasing and finance, information technology, real estate, and telecommunications, into one financial services provider called DaimlerChrysler Services AG. According to news reports, this entity, which will be headquartered in Berlin, will be the fourth-largest provider of financial services in the world outside the banking and insurance sectors.
The emergence of domestic and foreign financial powerhouses, such as General Electric's GE Capital Services (see Appendix B) and DaimlerChrysler Services AG, underscores the need for policymakers to fashion and adopt a more realistic approach to the mixing of banking and commerce in the United States. The mixing of banking and commerce under H.R. 10 would be confined to grandfathered entities, as discussed earlier. In practice, this restriction would preclude commercial banks and thrifts from affiliating with commercial enterprises and, in effect, would place a moratorium on the further mixing of banking and commerce in the United States at the federal level. This moratorium would not apply to domestic entities such as captive finance companies or industrial loan companies.
The FDIC supports a cautious easing of the restrictions on the mixing of banking and commerce, consistent with safety-and-soundness considerations. There have been no significant safety-and-soundness problems that have come to light in recent years regarding the mixing of banking and commerce. The provisions of the bill would place U.S. financial organizations at a competitive disadvantage in the global marketplace. Nevertheless, we recognize that U.S. banking organizations have had limited experience in affiliating with commercial enterprises. We believe that commercial activities should be permitted, provided that adequate safeguards exist to ensure safety and soundness. Moreover, we believe that we should proceed cautiously in order to allow banks time to adjust to a new competitive environment and to allow regulators and others to assess the actual benefits and risks of permitting banking and commerce to mix.
Under Section 10(b)(4) of the Federal Deposit Insurance Act, the FDIC has the authority to examine any affiliate of any depository institution as may be necessary to disclose fully: (1) the relationship between such depository institution and any such affiliate; and (2) the effect of any such relationship on the depository institution. The FDIC has used this authority sparingly and only after careful analysis. The very fact the authority exists, however, gives the FDIC the leverage to obtain necessary information that might not otherwise be available or forthcoming. The experiences of the 1980s underscore the importance of the insurer's ability to monitor in a timely and effective manner the relationships a depository institution has with its affiliates, especially during a period of major changes in the marketplace and the law. The current version of H.R. 10 preserves the FDIC's authority to examine any registered investment company for insurance purposes to determine the condition of an affiliated insured depository institution. Preservation of this authority is vitally important to allow the FDIC to discharge its insurance responsibilities and we commend you for including it in this bill.
The FDIC has a concern about the provisions in H.R. 10 that involve possible impediments to the evolution of products and services in the banking industry. H.R. 10 would narrow exemptions that banks have from registering as brokers or dealers under the securities laws. If doubt existed about whether an activity fell within an exemption, the Securities and Exchange Commission (SEC) would make the final regulatory determination and could use its enforcement authority to require registration. Thus, the SEC would have discretion to determine whether a bank needed to register as a broker or dealer and be subject to the regulatory requirements resulting from that status. Moreover, although one of the categories for exemption is effecting transactions in traditional banking products, the bill would authorize the SEC, after consultation with the Federal Reserve Board, to determine whether "new products" were securities, and thus subject to SEC regulation. Consequently, a nonbanking regulator would be given considerable authority over the activities of banks, a situation that could inhibit the evolution of banking products and services.
The last item regarding regulatory authority that concerns the FDIC
involves certain potential disputes between federal banking regulators and
state insurance regulators. For these disputes, H.R. 10 would eliminate the
deference usually accorded federal agencies' interpretations of their
statutes. We question whether this curtailment of the ability of federal
banking regulators to determine the scope of the permissible products and
services of banks is necessary or desirable. The concept of judicial
deference recognizes an agency's expertise in interpreting any vagueness in
federal legislation for which the agency has overall responsibility. We do
not believe it is wise to begin a process that could erode the sound
public-policy reasons for providing deference. Concerning the particular
focus of these provisions of the bill, the elimination of the deference
usually accorded the decisions of the federal banking regulators could, over
time, produce a number of state-by-state differences in the treatment of
the insurance-related activities of banks. Maintaining a degree of national
uniformity in the area of the financial arena where insurance and banking
meet would appear to be the preferable course.
Last Updated 06/25/99


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Space Quest III: The Pirates of Pestulon - Walkthrough/FAQ
_____ _____ _____ ______ ____ _ _ ______ _____ _______ / ____| __ \ /\ / ____| ____| / __ \| | | | ____|/ ____|__ __| | (___ | |__) / \ | | | |__ | | | | | | | |__ | (___ | | \___ \| ___/ /\ \| | | __| | | | | | | | __| \___ \ | | ____) | | / ____ \ |____| |____ | |__| | |__| | |____ ____) | | | |_____/|_| /_/ \_\_____|______| \___\_\\____/|______|_____/ |_| _____ _____ _____ |_ _|_ _|_ _| | | | | | | | | | | | | _| |_ _| |_ _| |_ |_____|_____|_____| Space Quest III for the PC FAQ/Walkthrough Copyright 2003 Michael Tyler Created by: Reptile E-mail: firstname.lastname@example.com Created on: 12/24/02 Version: 1.1 =================================================================== |--- TABLE OF CONTENTS --- | =================================================================== I......................................................Introduction II.................................................The Story So Far III....................................................The Controls IV..................................................The Walkthrough .A...............................Escape from the Garbage Freighter. .B..................................The Sandy Surface of Phleebhut. .C...................................A Stop at the Monolith Burger. .D..............................................The Raid on Ortega. .E..........................................Sneaking into ScumSoft. .F...........................................Fighting Your Way Out. V....................................................The Point List VI..............................................The Easter Egg List VII..................................................Special Thanks VIII.....................................................In Closing IX......................................................FAQ History X.............................................Copyright Information ======================================================================= |-I.------------------------ INTRODUCTION ----------------------------| ======================================================================= This document is a complete walkthrough for the game "Space Quest III: The Pirates of Pestulon". I will tell you each and every step you need to take to complete this game from start to finish. My instructions are pretty easy to understand, when I say "go up one screen", you should walk straight up until the background screen changes. When I say, "go right one screen", walk the character right until the background screen changes. Easy. When you get to the actual walkthrough, anything you read in parenthesis () is not a command, it is just what you will see happening on screen after you did the last command. Anything that is not in parenthesis is a command, and is something you must do. Anything you see in all capitals is what you have to type into the computer. Example: Walk up to giant head and type ENTER HEAD. That means you have to type those words exactly into the game. Although this game understands a lot of words, sometimes you can type in the simplest thing and the game has no idea what you are talking about. So follow each instruction exactly as you read it. When I use the term "near side", I mean stuff in the foreground. When I say "far side of the screen", I mean stuff in the background. You'll play this game as Roger Wilco, an adventurer/janitor (is there any other kind?). You walk around, usually with no idea why you are there or what you should be doing. You will pick up items, and use them in a different area. You type in commands to interact with objects and other characters. ======================================================================= |-II.---------------------- THE STORY SO FAR -------------------------| ======================================================================= It has been an indeterminate amount of time since Roger Wilco rocketed away from Vohaul's burning space fortress. Time stands still for our hero in suspended animation. Its engines long spent, the small escape pod drifts aimlessly through unfamiliar star fields, its course altered many times by small asteroids and space debris. Inside, Roger lies undisturbed in his sleep chamber... but not for long. The pod, considered to be nothing more than another piece of scrap, it taken aboard a robot commanded garbage freighter. Unfortunately these robots have no regard for organics. The small pod is jarred by a sudden shock, which triggers the Sleep Chamber's Revive Mode. As the glass shroud slides back, Roger slowly begins to regain consciousness. Roger's first words are a confused "Where Am I" ======================================================================= |-III.----------------------- THE CONTROLS ---------------------------| ======================================================================= This game, like the first two Space Quest games, uses a "parser interface". That means you have to tell it what to do. When you hit any letter of the alphabet, a small white box will appear on screen. In that box you type what you want the character to do. If you want to look around, you type LOOK and press enter. You can move around using one of two ways. 1. The Mouse 2. The arrow keys on the keypad When you use the mouse, you just click the cursor on the exact point you want Roger (the character) to walk to. Moving around with the mouse can be awkward, so I suggest you use the arrow keys. Moving with the arrow keys is pretty self-explanatory but just incase, =-Right Direction Key-= Starts Roger walking toward the right side of the screen. =-Left Direction Key-= Starts Roger walking toward the left side of the screen. =-Up Direction Key Starts Roger walking toward the top of the screen. =-Down Direction Key-= Starts Roger walking toward the bottom of the screen. To stop walking, just press the key direction key again. Here are some more commands you'll need to know: =-ESC-= Brings up the menu bar at the top of the screen. =-F2-= Brings up the sound controls =-F3-= Brings up the last thing you typed in a white text box =-F5-= Brings up the Save Game menu =-F7-= Brings up the Restore Game menu =-F9-= Brings up the Restart Game menu =-Control Q-= Quits the game =-Control P-= Pauses the game =-Control I-= Brings up your current inventory =-Control S-= Brings up the Game Speed controls =-Control V-= Brings up the Sound Volume controls ======================================================================= |-IV.---------------------- THE WALKTHROUGH --------------------------| ======================================================================= Remember, save early and save often... =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= 1.Escape from the Garbage Freighter =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= (You see yourself hop out of your escape pod and on to the soft ground. Under closer inspection, you realize the floor is just a big pile of junk. Your escape pod winds down to a quite silence. It looks like you'll need a new ship if you're going to make it out of this place.) Walk right two screens. Type TAKE WIRE Walk left two screens, then right one screen. Stand right in front of the garbage mover. It is the tall, blue and purple structure on the far right of the screen. You can see the scoops of this device moving upward. (After a few seconds, you'll be pulled up into the garbage mover, then dropped on a conveyer belt leading to a trash thrasher) As soon as you can, type STAND Type JUMP (You just climbed up on the blue railing overhead) Walk left three screens. Stand directly over the small dark green circle you see a few steps in front of you. Type CLIMB DOWN (You will climb into a small cart that rides the blue rail you stood on a few seconds ago. It has a button that allows you to lower a retrieval claw below you.) Move the Cart right four screens. (On the fourth screen, the cart will take a sharp turn and move to the far side of the screen.) After you move to the far side, go left three screens. This next step takes a little imagination. First, mentally draw a vertical line down the middle of the screen. Now, try to position the cart in the midpoint between your imaginary line and the right side of the screen. Type PRESS BUTTON (The claw should lower to the ground and pick up a round, blue and red object. If you missed it, just move around a little and try again.) Go right three screens and around that sharp turn that will put you and your cart on the near side of the screen. Position the cart as far to the right as you can get and still remain on the near side of the screen. Type PRESS BUTTON (You should have just lowered the warp motivator into the back of a small space shuttle below. If you placed it correctly, it should fall in the square black hole and disappear. This is the ship you will escape this place in. Take the cart left four screens. In the fourth room, position the car in the middle of the screen, just over the long blue panel. Type CLIMB OUT (You will climb out of the cart and walk onto the blue panel) Walk straight toward the bottom of the screen. (You will fall down a garbage chute into a small garbage pile.) Walk all the way to the left side of the screen, and stand where the long red wire disappears off screen. Type TAKE REACTOR (You just took a small power reactor. You'll use this to give power to your ship) Walk over to the upper-right corner of the screen. Type CLIMB LADDER (Now you're back up on the surface of the trash heap) Type TAKE LADDER Go up one screen. Go right two screens. (In this room you'll be attacked by a rat. This little guy will rob you of your reactor and your wire. This just means you have to go and get them back.) Go left two screens. Go down one screen. Walk to the lower left corner of the screen, near the large purple crate. Type USE LADDER Type CLIMB DOWN LADDER Walk over to the far left. Type TAKE REACTOR Type TAKE WIRE (Don't worry, they won't be stolen again.) Walk over to the ladder. Type CLIMB LADDER Type TAKE LADDER Go up one screen. Go right three screens. There is a large robot's head in the lower-right corner of the screen. Walk up next to the robots cracked eye. Be careful not to fall off the cliff's edge at the bottom of the screen. Type CLIMB INTO THE EYE (You'll climb into another section of the garbage dump.) Walk around to the near side of the space ship. Type USE LADDER Type CLIMB LADDER Stand on the small circle on the top of the ship. Type OPEN HATCH (You just climbed into your ship. This is the ship you will travel around in for the rest of the game.) Type PLACE RECATOR Type SPLICE WIRE (You'll use the wire to connect the small reactor to the ship's engine. Now the ship has a power ship.) Type SIT Type LOOK AT SCREEN Click "1. Engines" and wait for it to say, "adequate thrust achieved" Click "7. Radar" Click "8. Weapons System" Click "Front" under the shields Press the spacebar to fire off a shot (That shot will blow a hole in the side of the garbage freighter and the sudden pressure change will suck you out.) Type LOOK AT SCREEN Click "2. Navigation System" Click "1. Scan" until a purple planet called Phleebhut is on screen. Click "2. Set Course" Click "5. Light Speed" (You shoot off into light-speed. Just when you are out of sight, a ship turns off its cloaking device. Apparently you're being followed. Do you remember that item you bought in Space Quest II and never paid for? Well the company you bought it from sure does, and they've sent someone out to collect the bill.) (You will exit hyperspace orbiting the planet of Phleebhut. -------------------------------------------------------------------- =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= 2.The Sandy Surface of Phleebhut =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= Click "3. Land" (You land with a thud on the planet Phleebhut. This is a dry, sandy planet. There are a lot of dangers on this planet, but lucky for Roger you have a walkthrough. So you don't have to worry.) Type STAND UP Type PRESS BUTTON (The ramp will open and you'll stroll right out. At the same time, your pursuer's craft lands nearby. You soon realize two things: 1.That company takes debt collecting very seriously. 2. This guy's ship is not the only thing with the power to disappear.) Go right two screens. Go up two screens. (If you spot a scorpion, just walk off the screen the same direction you came in, then walk back in. He'll be gone.) Walk into the "World O' Wonders" Type SHOW ORIUM (A text boxes pops up as he offers you money for it.) Click "No" to his first and second offers. Click "Yes" to his offer of 450 buckazoids. (You just sold you rock of Orium for 450 buckazoids, good for you!) Type BUY UNDERWEAR (You just bought a pair of thermal underwear, they keep you cool no matter what the temperature. Trust me, you'll need them later) Type LEAVE STORE (Suddenly, the robot that's been in your pursuit makes his presence known to Roger. It doesn't take him long to tell you what's up. Thankfully, he gives you a small lead, then disappears. It's impossible to get to your ship in time, so don't even bother trying. Only one of you is going to make if off this planet alive, and I'll make sure it's you.) Quickly, go left one screen. Walk right into the doorway to the large blue foot. Stand on the gray square that sits on the floor in the middle of this tall, vertical shaft. Type PRESS BUTTON (You'll go for a little elevator ride) Walk up the red staircase you see to the right. Stand to the left of the hook you see on the near side of the screen. (There is a large spinning gear system in the middle of the room.) Wait for the robot to be on the near side of the gear system. Type PUSH PULLEY (You'll knock the robot into the gear system and tear him apart. He won't give you any more trouble.) Walk back down the red staircase and over to the light-blue pile of metal that was once Arnoid the robot. Type TAKE BELT (You just picked up the device that Arnoid was using to stay out of sight) After your little conversation with Fester, walk into the elevator with him. (You'll reappear just outside the large blue foot.) Go right one screen. Go down two screens. Walk to the near side of this screen. Go left two screens. Walk up the ramp into your ship. Type SIT Type LOOK AT SCREEN Click "1. Engines" to start her up. Click "3. Takeoff" to lift off from this planet. Click "2. Navigation System" Click "1. Scan" Keep scanning the map until you see the Monolith Burger. Click "2. Set Course" Click "5. Light Speed" (You blast off into an explosion of color. It's been Lord knows how long since your last meal, so you hope the food at this place will be worth the trip) -------------------------------------------------------------------- =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= 3.A Stop at the Monolith Burger =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= (This establishment is a fast-food hangout known as the Monolith Burger. Several aliens stand in line for their helping of what they affectionately call food. There is no line, however, on the left half of the screen.) Walk left one screen. Step up to the yellow ordering counter. (You get an up-close view of one of the employees. A little too close actually.) Type LOOK AT MENU Click "7. Monolith Fun Meal" Press "Q" on your keyboard to leave the menu. Since you don't have a choice, click "Yes" to his series of question. Type PAY HIM THE MONEY Walk right into the table that is second from the left. Type EAT FOOD (During the course of your meal you'll find a secret decoder ring.) Type STAND UP Walk over to the Arcade Machine to the left of the ordering counter. Type PLAY GAME Click "Insert Buckazoid!" to start playing. (This is probably the most frustrating part of the whole game, and sadly, there's not much I can do to help you. The best strategy is to try and have the chicken leave the screen at the middle top. He should come straight down to the landing pad. When you when, the game will put up an encoded message. Luckily, you have a secret decoder ring. You can use the ring to understand the secret message. Here is what it really says...) _____________________________________________________________________ | | | Help us! We are being held captive by ScumSoft on the small moon of | | Pestulon. An impenetrable force field surrounds the moon. It must | | first be deactivated. Its origin is unknown to us. ScumSoft | | security is armed with jello pistols. We're counting on you whoever | | you are. | | Two Guys in Trouble | |_____________________________________________________________________| Go right one screen. Walk into the doorway that is marked with a large yellow "M". Type GET IN SHIP (You'll climb inside your ship and cruise away from the Monolith Burger.) Type LOOK AT SCREEN Click "1. Engines" Click "2. Navigation System" Click "1. Scan" until you see the planet Ortega. Click "2. Set Course" Click "5. Light Speed" (Your light-speed engine takes you just outside the planet of Ortega.) -------------------------------------------------------------------- =-=-=-=-=-=-=-=-=-=-=-= 4.The Raid on Ortega =-=-=-=-=-=-=-=-=-=-=-= (You are approaching the volcano-ridden planet of Ortega. This is one of the hottest planets in this region. A planet like this is normally uninhabitable, lucky for Roger he bought that pair of Thermal Underwear. You won't have any problem beating the heat here!) Click "3. Land" Type STAND UP Type PUT ON UNDERWEAR Type PUSH BUTTON (You'll walk out of the ship and onto the rocky surface of Ortega.) Go down one screen. Go left one screen. Carefully walk across the loose rock bridge and go down one screen. (Stay right where you are, and wait for the men to fly off in their ship. It should only take about 25 seconds.) Once they're gone, walk over to the pole on the right side of the screen. Type TAKE POLE Walk over to the small green box. Type TAKE DETONATOR Go right two screens. Go up tow screens. Walk down the stairs directly to your left. (You now see a much smaller you on screen.) Go right one screen. Walk up to the tall red ladder that leads off the top of the screen. Type CLIMB LADDER Walk right up to the edge of the large black hole. Type DROP DETONATOR (You just dropped the explosive device into the generator. Congrats, you just destroyed the force field that was stopping you from landing on Pestulon. Unfortunately, your explosion has made Ortega a not so safe place to be. We better get moving.) Walk back over to the top of the red ladder. Type CLIMB DOWN When you get to the bottom, go left one screen. Go down three screens. Go left two screens. Go up one screen. Walk up to the cliff's edge. Type USE POLE (You will pole-vault over the lave filled chasm) Go right one screen. Go up one screen. Walk up the ramp and into your ship. Type SIT Type LOOK AT SCREEN Click "1. Engines" Click "3. Take Off" Type LOOK AT SCREEN. Click "2. Navigation System" Click "1. Scan" and keep scanning the map until you see the small moon of Pestulon. Click "2. Set Course" Click "5. Light Speed" (Off you go. You have created safe passage to the moon of Pestulon. On this moon you hope to find the guys who left you the mysterious message on the Astro Chicken game. After a very short trip, you arrive orbiting the moon of Pestulon.) -------------------------------------------------------------------- =-=-=-=-=-=-=-=-=-=-=-=-=-= 5.Sneaking into ScumSoft =-=-=-=-=-=-=-=-=-=-=-=-=-= Click "3. Land" (Here you are, the surface of Pestulon. Sadly you won't see much of its terrain because your focus is not the moon itself, but the building that sits on the moon. On this moon is the headquarters of ScumSoft, one of the largest and most notorious software developers in the galaxy. It's gonna be tricky rescuing the two guys, but hey, if it was easy then this wouldn't be an adventure game.) Type STAND UP Type PRESS BUTTON (You climb out onto the surface of Pestulon.) Walk any direction you want to, they will all lead you to the exact same place. (You are now looking at the main entrance to ScumSoft.) Type PUT ON BELT Type TURN THE BELT ON (You are now temporarily invisible. After a few seconds, the game will ask you for your next move) Click "Enter ScumSoft" Walk down the stairs in the middle of the screen. (Just as you reach the bottom, the belt shuts off. You have used the last of its power) Walk up to the panel on the left of the large red door. Type PRESS BUTTON (You walk right thorough the door and into a hallway.) Start walking toward the bottom of the screen. Walk into the first door you come to on the left. Type TAKE OVERALLS (You put on a set of janitor's clothes and dump your entire inventory in the process. All you posses now are a garbage vaporizer and the overalls you are now wearing.) Walk right to exit the closet Start walking toward the bottom of the screen. Go into the first door on the right. (You see before you a maze of cubicles. Next to some of the desks you will see small black cylinders filled with paper, these things are trashcans. Since you are trying to pose as a janitor, you need to do some cleaning. Each time you come to one of these trashcans, walk right up on it and type ZAP GARBAGE. If you miss a can, one of the employees will call for security to stop you. So make sure you don't miss a single one.) Go left one screen using the bottom-most pathway. Walk up to the picture on the wall. Type TAKE PICTURE Walk over to the white machine siting on the gray cabinet just to the left of where you are now. Type COPY PICTURE Walk over to where you stole the original picture. Go right one screen. Go left one screen using the second pathway from the bottom. Go right one using the first pathway from the top. Go up one screen. Go right one screen. Go left one screen. (I had you step out of the room for a second so Elmo would leave his desk) Walk up to Elmo's desk and stand next to the small white object on the lower right corner of his desk. Type TAKE CARD (You just picked up Elmo's electronic keycard.) Go down one screen. Go left one screen. Go right one screen using the pathway third from the top. Go down one screen. (You are back in the hallway.) Start walking toward the bottom of the screen. Walk up to the first door you come to on the right. Type USE KEYCARD Type HOLD UP PICTURE Walk right in the door. Walk over to the left side of the platform. Type PRESS BUTTON Walk across the newly created bridge and right up to the two men trapped in the jello squares. Type ZAP (The garbage zapper will destroy the jello and free the two guys, but you haven't won yet. Elmo Pug has caught on to your little plan, and it becomes clear to Roger that his escape will not be easy.) -------------------------------------------------------------------- =-=-=-=-=-=-=-=-=-=-=-=-=-= 6.Fighting Your Way Out =-=-=-=-=-=-=-=-=-=-=-=-=-= (You will be taken to inside a huge robot. Apparently Elmo has at least given you a chance to escape, so all is not lost. Man to man, janitor to huge software developer. Good Luck.) You now have to fight Elmo Pug in a game called "Nukem Dukem Robots". The best strategy is to hold your ground, and attack using a two-punch system. If you land one, land another one as soon as possible. Remember that any punch he blocks doesn't hurt him. Each time you attack and it is either blocked or you miss, it will drain some of your energy. When your energy is completely gone, you just lost. Here are the controls: =-J-= Punches =-M-= Blocks a punch =-Right Direction Key-= Moves your robot toward Elmo's robot =-Left Direction Key-= Moves your robot away from Elmo's robot (When you completely deplete Elmo's energy, you will jump out of your robot and run out of the newly created hole. You and the two guys will jump in your ship and lift off from Pestulon. Just one more fight and you've won the game.) (You now see Roger and the two guys sitting in your ship. The two guys will ramble on about stuff for a few minutes. You will soon get a message on the screen that says a group of skull fighters are pursuing you. Apparently Elmo is a sore loser, and sent 5 fighters to finish the job he couldn't do.) Type LOOK AT SCREEN Click "6. Attack Speed" Click "8. Weapons System" Keep an eye on your "Target" display. When it says "In Rear", focus the shields on the back of the ship. When it says "In Front", focus the shield power on the front of the ship. Right after the skull fighters fly in from the rear, you'll get your chance to fight back. Just keep clicking the cursor on the moving ship that is now in view. When it reads "Locked On", press the spacebar. Kill all 5 ships and you're done. Congratulations, the hard parts over! Click "Off" Press F6 (One of the guys will start messing around in a panel of the ship and fix your broken hyperdrive. Unfortunately, you didn't select a course. You shoot into light-speed, hurtling aimlessly through space. You come out of lights-peed near some planet Earth. You land, hoping that this planet is at least inhabitable. Roger and the two guys climb out, and are met by the head of Sierra. The two guys make it to their date with destiny, sadly this date doesn't involve you. Looks like you're all alone again Roger, Sierra isn't in need of a janitor. You lift off from this odd planet, and shoot off into unknown regions of space.) ======================================================================= |-V.------------------------ THE POINT LIST --------------------------| ======================================================================= There are a total of 738 points to get in this game and this list tells you how to get every last one of them. In the walkthrough above, I just gave you the instructions you need to win the game. There are a few things you need to do differently if you want to get all the points possible. =-The Garbage Freighter-= Pick up the wire - 5 points Climb on the trash mover - 5 points Jump up to the blue railing - 10 points Pick up the warp motivator - 15 points Lower the warp motivator into ship - 15 points Fall down the blue garbage chute - 5 points Pick up the reactor a second time - 15 points Take the white ladder - 10 points Climb into the large robot head - 5 points Use ladder on the ship - 5 points Open the top hatch of the ship - 10 points Hook up the reactor - 5 points Splice the wire - 5 points Search the pilot's seat - 10 points Escape from the garbage freighter - 25 points ---------------------------------------- =-The Planet Phleebhut-= Sell the Orium for 425 buckazoids - 8 points Buy the Astro-Chicken hat - 5 points Buy the Orat-on-a-Stick - 5 points But the thermal underwear - 5 points Have Arnoid walk under the pods - 45 points Pick up the invisibility belt - 35 points ---------------------------------------- =-The Monolith Burger-= Pay for the Monolith Fun Meal - 10 points Eat the Monolith Fun Meal - 10 points Win Astro Chicken game - 50 points Use the ring on encoded message - 70 points ---------------------------------------- =-The Planet Ortega-= Put on the thermal underwear - 10 points Look through the telescope - 10 points Pick up the pole - 10 points Pick up a detonator - 10 points Drop detonator into field generator - 20 points Pole-vault over lava chasm - 20 points ---------------------------------------- =-The Moon Of Pestulon-= Walk into ScumSoft - 25 points Pick up the janitor's uniform - 5 points Copy the photo of Elmo - 5 points Steal Elmo's keycard - 5 points Find the two guys - 20 points Use trash zapper on the two guys - 10 points Defeat Elmo Pug in Nuk'em Duk'em robots - 100 points Destroy the skull fighters - 100 points ---------------------------------------- ======================================================================= |-VI.-------------------- THE EASTER EGG LIST ------------------------| ======================================================================= An easter egg, in this case, is something funny that is put in a game, movie, or TV show purposely to be found by the viewer. It could be an inside joke that you may have missed, or something you would only see if you knew exactly what you were looking for. Got it? Good, then here they are... 1.In the intro to the game, you can see the signature of Mark Crowe in the right corner of the screen. 2.On the garbage ship, in the area your new ship sits, you can see Legos and other children's toys around. 3.In that same area, you can see the pod from the movie "2002: A Space Odyssey. 4.In the garbage dump, you can see a Tie-Fighter from the Star Wars movies. It makes mention of it being a "bow-tie fighter from the "cologne-wars". It is talking about the "Clone Wars." 5.In that same area, you can see the ship Jupiter II, from the TV show "Lost in Space." 6.The "Arnoid the Annihilator Android" is made to look like Arnold Schwarzenegger, from the Terminator movies. 7.When you first pull up to the Monolith Burger, you can see the Enterprise from the TV show "Star Trek." 8.One of the aliens at the Monolith Burger looks like Jabba the Hutt from Star Wars. 9.The name or Roger's ship, The Aluminum Mallard, sounds just like The Millenium Falcon from Star Wars. 10.After you save the two guys; Scott will turn to the screen and ask how you are enjoying the game. 11.The "Nuke'em Duke'em Robots" sound just like the child's toy "Rock'em Sock'em Robots". 12.Next to Elmo's office in you can see a couple of guys walking over some desks and whipping the employees. Those two guys are Ken Williams (founder of Sierra On-Line) and Rick Cavin (who was at the time head of production.) 13.The "World O' Wonders" has many postcards for sale. One of them is from the planet Arrakis. This is the planet in the movie "Dune." 14.The game's subtitle, "The Pirates of Pestulon", could be a twist of the musical "The Pirates of Penzance". ======================================================================= |-VII.---------------------- SPECIAL THANKS --------------------------| ======================================================================= Thank you http://www.geocities.com/SiliconValley/Lakes/3853/sieregg/sqjokes.html for #12 on the Easter Egg List. Thank you http://www.geocities.com/sierra-a-rama/sq/sqegg.html for #13 & 14 on the Easter Egg List. Thank you Sierra for creating this and all the other Space Quest games. Thank you IGN for posting this on your website www.IGN.com Thank you CjayC and your website www.GameFAQs.com for posting this, and all my other FAQs, guides, and codes. Thank YOU for reading this FAQ, I hope it helped you out. ======================================================================= |-VIII.----------------------- IN CLOSING ----------------------------| ======================================================================= My e-mail address is at the top of this document, please e-mail me if there are any corrections that need to be made or any missing information that I need to fill in. If you found this guide useful, you may also want to check out my FAQ for Space Quest (VGA). Also, don't forget to voice your opinion of this FAQ by using the GameFAQs.com FAQ-rating system ======================================================================= |-IX.------------------------ FAQ HISTORY ----------------------------| ======================================================================= 12/20/02: Today I start work on my FAQ/walkthrough for Space Quest III. 12/24/02: I finally finished typing it up, and it's all ready to be sent in to GameFAQS. I will work on "The Point List" and have it ready for the next update. For now though, this is FAQ version 1.0 12/25/02: As promised, I got the point list up, and it looks pretty good. Aside from possible additions to the Easter Egg List, there isn't really anything to add to this FAQ. There probably won't be anymore updates. Anyway, I call this FAQ version 1.1 12/30/02: Gave this FAQ a new table of contents. Nothing major, so I'm not going to bother with changing the version number. This is still FAQ version 1.1 1/20/03: With advice from "phoenix 1911", I made yet another format change. This is still FAQ version 1.1 2/28/03: I added some nice ASCII art at the top. Enjoy! 5/6/2003: I cleaned this guide up a little, as well as adding my writing signature at the bottom. I'm still gonna consider this one FAQ version 1.1 6/12/2003: IGN may now post this guide on their website ======================================================================= |-X.-------------------- COPYRIGHT INFORMATION -----------------------| ======================================================================= Since I, Michael Tyler (Reptile) wrote this document, it is protected by copyright law. I do not allow anyone else to distribute this for any reason. As of now, I allow only www.GameFAQs.com and www.IGN.com to publicly display this document on their websites. If you want to put this on your site, you must ask me first. There will be a penalty if I find someone using this document without my written permission. This document was written for personal\private use only. Copyright 2003 Michael Tyler -----From The Twisted Mind Of----- __________ __ .__.__ \______ \ ____ _______/ |_|__| | ____ | _// __ \\____ \_ __\ | | _/ __ \ | | \ ___/| |_\ | | | | |_\ ___/ |____|_ /\___ \| __/|__| |__|____/\___ \ \/ \/|__| \/

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Fashion's Mother Supreme
We are, in a way, the latest tribe of people who have re-discovered luxury in modernity. First, it was the Europeans, then the Americans, the Russians and now the Asians, particularly the Chinese. Is the concept of luxury now being defined by Asian consumers?
I don't think you can say "Luxury means X" because it means different things to different people. I would say that for people who have just started to consume luxury, they tend not to think this is about some great pleasure for themselves, rather, they'd think, "I have managed to get a luxury bag with a logo (or whatever it is)", and that's that.
So it's purely material, not conceptual?
It's not about the money, it's about the person who buys it and how he feels about it. I mean, why should we criticise such people, if it gives them tremendous pleasure to have a bag with a lot of logos on it?
Does fashion have a way to explain such consumer behaviour then?
It has always struck me that the rise of the logo happened right about after the last of the tribal clothes faded away. After all, people for a very long time have been wearing clothes that delineate their tribes, whether they may be from the farthest coast of Indonesia or the highlands of Scotland with their kilts. These, in the past, have been identifying them as belonging to particular parts of a society.
The rise of the logo certainly comes from people seeking an identity and it doesn't surprise me that the Chinese, who've had their identity snatched away from them — unless you count the Mao suits — should be the first to buy brands because it helps them recreate an identity.
What a refreshing perspective on this logo-obsession phenomenon.
Oh well, or I could well be completely wrong about this.
In 1966, you were hired as a junior fashion reporter for The Times of London and only in 1988 did you become the fashion critic at International Herald Tribune. That's an ascent that's taken 22 years. Things don't happen the same way now, does it?
No, everything was much slower then. You might say the same to Giorgio Armani and say pretty much the same thing: What took you so long, 18 years really, to put your name above the door?
But the point is, fashion writers now want to be fashion editors tomorrow and bloggers think they can become publishers in the next hour. Can authority be assumed despite not having earned enough experience through the years to internalise information and learn the ropes through stages and processes?
Sometimes it's fresher to hear comments from someone who has never seen a fashion show before or is seeing something for the very first time, rather than someone who has seen it many times and who may sound a bit jaded about it. It's not necessary that just because you've spent a long time looking at things that it makes you a better or worse person.
Oscar de la Renta once said you don't base your reviews on what you like. Many critics cannot divorce themselves from what their own biases. How are you able to keep that healthy detachment?
I was kind of trained that way. I've got this mantra I say to my assistants: It's not good because you like it, you like it because it's good. You wouldn't ask the same question of an art critic, ie how could you write something positive about it if you wouldn't even hang it on your own wall. Not that fashion is art, but it's sort of the same thing.
In an old story in The New Yorker, your interviewer John Seabrook likened you to a proud mother to a lot of designers, one who wants you to succeed and takes it personally when you don't. Has fashion always been so personal for you?
I remember that article because that was when Kate Moss called me a mad aunty. She's right there: I'd rather be a crazy aunty than a kind mother. No, I would be obviously disappointed when somebody whom I think is a really strong designer puts out a weak collection — anybody would be really. But I don't take fashion that personally. It's not the basis of my life, much as I love fashion, I have my own family and friends who've got nothing to do with the business.
Speaking of family, you have three sons. Are they into fashion?
It's interesting. All three sons were brought up identically and yet they dress in different ways — it just shows how fashion is something you can't really implant: You either have it or you don't. My eldest son Gideon, who's in business, always looks very smartly dressed. My second son Joshua works at Google and I would say, if I was trying to be kind, that he dresses in an American style (I'm not against American fashion, I'm just trying to put this politely — like any Google employee, they just seem to throw their clothes on). My youngest son Samson is always very very...not label-conscious...but he always naturally puts the right thing with the right thing.
Are they amused that your entire career is about looking at clothes?
I don't know. I've never asked them that question — I mean, well, they've had to put up with it for so long!
People read your reviews with a different mindset, that they are actually viewed as very intelligent writing, which doesn't happen so often now in fashion journalism.
You always want to feel if there is some kind of social movement behind it. I guess what you are trying to say is that I try to put fashion in a context, so they know where it stands in the world and what it means.
As one of the most seminal voices in fashion, what are the other voices you respect in fashion criticism?
Sarah Mower (American and British Vogue), Francesco Scozzani (Vogue Italia), Jefferson Hack (AnOther Magazine) and Tim Blanks (Style.com).
Oft-times, people regard you as a fashion intellectual. Would you have it any other way?
I'm just trying to write something intelligent, not intellectualising fashion. Fashion is fashion and in the end, we're really talking about clothes here. I don't think we should give it any more meaning than it has. But still, when you see what rituals have been attached to clothes and jewellery, you'll realise that there is a certain depth there.


text:
Authentic Content Marketing
When I [am forced to] watch a traditional corporate marketing video, ion rays fly out of the screen and penetrate my soul stealing my dreams and replacing them with feelings of regret and shame, like when I reach that weird part of YouTube.
I'll get right to it. One, we built the new website for About Face Media and two, and more importantly, if you are a brand that cares about storytelling and differentiation, you should get to know them.
We aren't a content development company. Of course we spend considerable time understanding a client's current content strategy for all of their audiences, brands and platforms and sometimes we help them plan a new strategy but we don't necessarily develop the content. About Face does, and in one of the most approachable, authentic ways.
About Face uses a national (and sometimes global) team of award-winning, independent documentary film makers to make videos for brands and then optimize them for viewing on the social web.
It works. I've seen it. You probably need it. Trust me.
Now, there are lots of video production studios that do great work. There are just as many that wagonjacked (oh yes I did) the documentry style bandwagon and claim to be 'storytellers'. However there are far fewer that have an award winning documentary film background and are immersed in this and only this all day, like About Face.
They are specialized and it shows in their work. Good shops need to stick together and we can think of few better to attach our name to than About Face.
Like us, a small percentage of their work is with Milwaukee clients but that isn't to say they aren't committed to developing the creative community here. If you have been attending the Milwaukee Film festival over the past 10 days, no doubt you've seen their logo in the sponsor trailer and heard the name of About Face's CEO, Barry Poltermann dropped a few dozen times. Their roots are in independent film and they have a vested interest in fostering emerging talent in the industry.
I recently asked Barry about his experience with our site build. "Northern Ground is smart and nimble - the right combination in a world that moves this fast. Aside from what the do best, they understand the value of marketing to social channels with good content. They earn real trust with clients so when they recommend About Face, their customers take that seriously. That's far too rare."
I've had the pleasure of partnering with About Face on several client projects and the results have always been exceptional. I recommend them without hesitation.
To help them tell their story, we built their new website on Umbraco's CMS platform allowing the AF team to control content and site optimization on their terms. The site layout and architecture was somewhat predetermined but Jay took it the rest of the way through smart choices in usability, typefaces and color treatments. Overall, he made a conscious effort to get out of the way and let their video content tell their story.
Watch for future client announcements with About Face and the launch of a new video collaboration platform we are currently designing together. The End


text:
VIENNA (Aug. 27)
Anti-liberal elements in Czechoslovakia as early as last spring were using an alleged "Zionist plot" in attempts to discredit the reform regime of Communist Party First Secretary Alexander Dubcek, it was disclosed yesterday by Simon Wiesenthal, head of the Jewish Documentation Center here. Mr. Wiesenthal, who gained international prominence by his efforts to track down Nazi war criminals, including the late Adolf Eichmann, said the leaflets circulated in Prague early last May warned against a take-over by "Zionists" and singled out Prof. Eduard Goldstuecker, rector of Charles University in Prague, and head of the Czech Writers Union and a supporter of Mr. Dubcek, as one of the plotters.
The disclosure by Mr. Wiesenthal followed reports yesterday that both Poland and East Germany were trying to justify their participation in the Soviet-led invasion of Czechoslovakia by alleging that "Zionist forces" had taken over the party leadership in Czechoslovakia and were subverting Socialism there. Mr. Wiesenthal said it was never established who printed and distributed the leaflets in Prague but they are believed to have been the work of supporters of ousted President Antonin Novotny. A week later, he said, a number of Jewish and non-Jewish public figures in Prague received letters forged on stationery of the Documentation Center which expressed deep satisfaction with the liberalization measures as being good for Jews and for Israel. The letters, ostensibly signed by Mr. Wiesenthal, were described by him yesterday as clumsy fakes.
Mr. Wiesenthal said that the use of an alleged "Zionist" threat by the opponents of liberalization in Czechoslovakia was intended to appeal to latent anti-Semitism in Eastern Europe. Prof. Goldstuecker, the single Jew in the clandestine party leadership to which he was elected after the Soviet invasion last week, was himself the target of viciously anti-Semitic letters several months ago. Some of the letters were published in the Czech Communist Party newspaper Rude Pravo along with an article by Dr. Goldstuecker decrying anti-Semitism. His position was endorsed in scores of letters to the newspaper from Czechs in all walks of life. Mr. Wiesenthal noted yesterday that only 14,000 Jews remain among Czechoslovakia's 14 million people and only 4,000 of them practice their religion. He said the Jews remained in Czechoslovakia because of strong bonds with their country.


text:
From: "Joe N." <jnardone at gmail dot com>
> Frederick Page wrote:
>> Indeed that raises the question: why not melt the m0n0wall into the
>> pfSense project and work together? Instead of copying pfSense?
> My biggest problem with pfSense is footprint. I want to be able to run
> this in RAM and not need a hard disk or large solid-state storage to hold
> it. I wouldn't mind a merged project, but only if there was a "slim"
> version that was essentially the core M0n0wall functionality.
The small footprint and running in ram is a deal breaker for me. I have a
mix of HD and CF, but my largest CF is 16mb, and some are 8mb. (ram is
128-256) The fact that a running firewall will not die from an HD failure
is important. It also aids in troubleshooting. Sudden flake without a save
flash or reboot? It HAS to be cpu or ram. Runs fine, but dies on a save,
flash or reboot? HD/Cf died... Runs for a while and crashes regular? Heat
problem or power supply. You have to love that. With appropriate spares,
and a library of config files, I can have a downed box up in the time it
takes to get there.
All that said, a little melting would be a good thing. In some cases a
bigger platform with easy plugins would be helpful. Perhaps a bidirectional
config file upgrade tool would be made. I am all for having lots of tools
in a toolbox, and one that is familiar is better. But don't take away my
> ps: and no, given a choice of Windows, I still would have picked FreeBSD
> because that's the lowest risk AND greatest reward platform for most of
> the requirements gathered during Manuel's poll.
One of the benefits to me was that it is NOT a common platform. Popular
platforms are the first ones hacked.


text:
Bible Study: Chapter 3
Eph 1:18,19 I pray also that the eyes of your heart may be enlightened in order that you may know the hope to which he has called you, the riches of his glorious inheritance in the saints, and his incomparably great power for us who believe.
So far we looked at the cycle of sin that
repeats itself throughout the book of Judges, and we have had a general look at
the enemies which
3:7-8 'The Israelites did evil in the eyes of the LORD; they forgot the LORD their God and served the Baals
and the Asherahs. The anger of the LORD burned against
So the passage starts with a very
surprising turn of events…
Now, this is the first nation that would
take charge over
Cushan-Rishathaim means 'doubly-wicked
blackness'. A lovely name don't you think? It's quite surprising that is
hasn't caught on very well! Obviously a very nice man to be around! This man is said to have been the King of
Now, why do you think self-exaltation and pride would be called 'double-wickedness'? It is double wickedness because there is nothing God can do with a man who does not see his need of God. God resists the proud because the proud resist Him. There is a very real sense in which pride and independence (and it's 'spiritual' form through legalism) are worse than normal outward sins because at the very least the person who gets tripped up into sin still sees their own weakness, their need of Jesus' work on the cross, and His power in their life now. The person proud of his own achievements and independence does not see the importance of God's work on behalf of mankind…So Israel forgot the Lord, and in turning from Him the Lord allowed them to be dominated by that which their own hearts leans towards – prideful independence in the form of the King of Aram.
Judges 3:9-11 'But when they cried out to the LORD, he raised up for them a deliverer…'
Before we get onto the
deliverer that God raised up, let's just quickly see what was needed on
3:9-10 But when they cried out to the LORD, he raised up for them a deliverer, Othniel son of Kenaz,
Caleb's younger brother, who saved them. The Spirit of the LORD came upon him, so that he became
The first judge was Othniel. He came from good stock this man for he was Caleb's nephew. The name Othniel means the 'power of God' but we will get back to this later. If you have been reading the book of Judges for yourself you would, I'm sure, remember Othniel from chapter one. He was the one who fought valiantly in capturing Kiriath-sepher[4] at the request of Caleb (-12)
From the passage above we see that Othniel
So let's
get back to Othniel himself. We read that 'the Spirit of the Lord came upon
Him' and he went out and defeated that doubly-wicked black Cushan! When
Now, none of this should be new to us. The writers of the New Testament (especially Paul) were constantly trying to focus our attention on the fact that knowing God's life and power is critical if we are to be effective in our Christian life. Listen to some of their pleas…
The Old Testament is likewise filled with examples that say this very thing. The Psalms alone are filled with verses empathising the need to know, trust in, and proclaim the mighty power of God. (See Psalm 20:6-7, 68:34-35, 71:18, 78:4). In fact, the Psalms also show that Israel's moaning, unbelief and rebellion in the wilderness were due to the fact that they 'did not remember His power'. (Psalm 78:40-42).
May we learn from the
lessons presented to us here in the book of Judges. Be careful of him who was the
first enemy to completely conquer
|Bible Studies in the Book of Judges Series
[1] Instead of
[2] Jesus has already exalted us to the highest possible place – 'seated with Him in the Heavenly places.' (Eph 2:6) Don't you think it's a shame that people are not happy with such exaltation and have to exalt themselves? Even for our normal lives the Bible says that God is the one who exalts one person and brings another down – See Psalm 75:4-7. Our good friend Nebuchadnezzar found this out the hard way! He had barely finished admiring… himself… when God humbled him in an extremely unique way! Read the fascinating account in Daniel 4:28-37. At the end of it however he had come to his senses and he spoke these wise words 'Now I, Nebuchadnezzar, praise and exalt and glorify the King of heaven, because everything he does is right and all his ways are just. And those who walk in pride he is able to humble.'
[3] In his book 'Beware the new prophets', Pastor Bill Randles has an interesting chapter entitled 'The Two Mysteries' which seems appropriate for what we are currently talking about. Here are some direct quotes – 'Though indeed there are so many spiritualities flourishing in the world today, there are in essence only two religions underlying them. All religious expression or experience can biblically be put into only two categories, two spiritual principles or mysteries as the Bible calls them. They are the Mystery of Iniquity and the Mystery of Godliness. As far back as the garden of Eden (and even before that) these two spiritualities have coexisted.' And here is a non-direct loose wrap-up of these two mysteries. The mystery of Iniquity (2 Thes 2:7) has its heart in Satan's prideful desire to become something great. 'I will exalt my throne above the stars of God… I will ascend above the heights of the clouds; I will be like the most High.' This was the promise that was given to Adam and Eve that they would be 'like God'. This exalting of our self has its roots in the nature of Satan and is the Mystery of Iniquity. The mystery of godliness (1 Tim ) is totally different! It doesn't emphasise our exaltation, but that Jesus descended for us! God's life living out through a man is the nature of the mystery. So which do you emphasise? Do you major on what we have to do to become 'more like God' or do you emphasise who Jesus is in and through you?
[4] There is a great little picture in this once you know the meanings of the place names. Kiriath-sepher means 'the city of the book'. Othniel (the 'power of God') captured this place and it is renamed Debir which means an 'oracle – the living word of God'. It is the power of God that can transform the Bible from just being a 'book' to what is really is – the living word of God for you. This doesn't replace our need to really read it and study it, and then read it again. Oh yeah, and then study more!. (Prov 25:2) It just shows our need and reliance upon the Holy Spirit to grant us insight and understanding of His word. (1 Cor 2:6-16)
[5] Ok, personal confession time! This is what I mean by self judgement, especially in regards to pride and exalting ourselves. I speak quite regularly in the church that I attend. There have been a few times that I can remember were the following has happened… Before the sermon I'll be praying 'Lord, speak through me, speak to peoples hearts, it's not me but only you that can do this!' I then give the sermon and afterwards, occasionally, ok very occasionally, someone will tell me that I did really well and that I am a good speaker blah blah. And sure enough, I begin believing my own press! Pride is always at the door, be sure of that. It can't be just me I hope, you've got the same nature too! Now it is right at this point that self judgement is needed. Are you going run with these prideful feelings or admit them to the Lord as a further evidence of your need of Him?
[6] Judging yourself is only difficult if you don't understand grace. But once you know grace and have come to know yourself it becomes so much easier. Pride is all that people in the world have so they often find it hard to admit they are wrong. Christians who know grace know that God fully accepts them despite the range of responses of their twisted old nature. It just comes down to examining your own heart and being honest with God about it. And like I said, grace makes all of this possible because your standing is not based on your own works but on Jesus gift of righteousness to you!


text:
Maserati is aiming to be a true global player in the years to come. In order to achieve its goal, the company is making its preparations as early as now. Maserati has a new vehicle offering that shows its geared up for growth, the new 2013 Quattroporte!
So whats this new model like? The 2012 Maserati Quattroporte is actually a high-performance sports luxury sedan that epitomizes the brands harmony of shapes, dynamism of lines and pure Italian elegance. In front of the car are xenon headlights with LED accents, three fender-mounted air inlets, and the triangular C pillar.
The interior is elegant yet simple-looking with the functional elements set in the soft quality surfaces of wood and refined leather.
As for the engine, the actual specs arent clear as of now. It will likely have a turbocharged V-8 engine that will be complemented by a supercharged V-6. Automatic transmission will most likely be installed in this beautiful vehicle.
The new 2013 Maserati Quattroporte will make its debut at the Detroit Auto Show. Expect to be amazed!


text:
|linux-kernel@xxxxxxxxxxxxxxx, xfs@xxxxxxxxxxx
|XFS status update for January 2010
|Christoph Hellwig <hch@xxxxxxxxxxxxx>
|Wed, 10 Feb 2010 13:08:51 -0500
|Mutt/1.5.19 (2009-01-05)
January saw additional release candidates of the Linux 2.6.33 kernel, including a couple of bug fixes for XFS. In the meantime the XFS tree has been growing a large number of patches destined for the Linux 2.6.34 merge window: a large rework of the handling of per-AG data, support for the quota netlink interface, and better power saving behavior of the XFS kernel threads, and of course various cleanups. A large patch series to replace the current asynchronous inode writeback with a new scheme that uses the delayed write buffers was posted to the list. The new scheme, which allows archive better I/O locality by dispatching meta-data I/O from a single place has been discussed extensively and is expected to be merged in February. On the userspace side January saw the 3.1.0 and 3.1.1 releases of xfsprogs, as well as the 3.0.4 release of xfsdump. The biggest changes in xfsprogs 3.1.0 were optimizations in xfs_repair that lead to a much lower memory usage, and optional use of the blkid library for filesystem detection and retrieving storage topology information. The 3.1.1 release contained various important bug fixes for these changes and a various improvements to the build system. The major feature of xfsdump 3.0.4 were fixes for time stamp handling on 64-bit systems. The xfstests package also lots of activity including various new testcases and an improved build system.
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