Community Savings to Sell Realty Units: Maryland S&L Will Divest Subsidiaries to Qualify for Federal Deposit Insurance

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NEW YORK -- Community Savings & Loan Association, one of Maryland's privately insured thrifts, said Wednesday that it is selling its Epic real estate companies to meet a regulatory condition for federal deposit insurance.

But there is "no truth" to rumors that either Community or Epic is facing financial trouble, said James Deerin, Community's senior vice president and general counsel.

Rumors had spread among Wall Street traders that a Maryland-based thrift would default on a major deal in mortgage securities. "We also had been hearing rumors here for a couple of days that we were in trouble," said Mr. Deerin.

He said the source probably traces back to …