Magazine article American Banker

Getty's Lawyer Poised to File Lawsuit in Effort to Block Citicorp's Thrift Bid

Magazine article American Banker

Getty's Lawyer Poised to File Lawsuit in Effort to Block Citicorp's Thrift Bid

Article excerpt

Getty's Lawyer Poised to File Lawsuit In Effort to Block Citicorp's Thrift Bid

A lawyer representing oil billionaire Gordon Getty said Friday afternoon he was "within 15 minutes' of filing a suit in a federal appeals court asking that Citicorp's bid for an ailing Washington, D.C., thrift be set aside.

"We're asking the court to instruct the Federal Home Loan Bank Board to permit Mr. Getty to submit a new bid' for National Permanent Bank, said Roger Mehle, Mr. Getty's lawyer. In addition, he said, the U.S. Circuit Court of Appeals in Washington would be asked to stay the Bank Board's earlier decision awarding National Permanent to New York-based Citicorp.

Mr. Mehle will contend that because his client is an individual, rather than a financial institution based in another state, he is entitled to an opportunity to resubmit his bid under provisions of the Garn-St Germain Act of 1982.

The act provides that if bids fall within 15% of each other in terms of their cost to the Bank Board's insurance fund, and if the lower bid is from an out-of-state institution or an institution other than a thrift, the other bidders are permitted an opportunity to match the low bid.

Although Mr. Getty is not a resident of Washington and although the act does not specify how individuals are to be treated, Mr. Mehle pointed out that Bank Board officials said during the bidders' conference that individuals would be treated as local institutions.

Citicorp's bid, he said, would cost the Bank Board $51.8 million, and Mr. Getty's bid would require $54 million of assistance. …

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