Newspaper article THE JOURNAL RECORD

Feds Take Control of 38 More Thrifts in 8 States

Newspaper article THE JOURNAL RECORD

Feds Take Control of 38 More Thrifts in 8 States

Article excerpt

WASHINGTON (AP) - Federal regulators took over 38 more savings and loan associations in eight states Thursday, bringing the total under government control to 215 in 31 states.

The institutions - in California, Colorado, Iowa, Illinois, Kansas, Missouri, Mississippi and Texas - were the latest to be taken over in a program being administered by the Federal Deposit Insurance Corp.

The FDIC, which regulates commercial banks, is going into the sickest S&Ls with the goal of minimizing losses until Congress appropriates the money to shut them down or sell them to new owners.

The first legislative votes were taken on the S&L bailout legislation on Thursday when members of a House Banking subcommittee began considering 165 proposed amendments.

The FDIC began the takeover program at the direction of President Bush on Feb. 7 and plans to assume control of 17 more institutions within the next few weeks.

In announcing the latest S&L takeovers on Thursday, the FDIC emphasized that the institutions will remain open as usual and that all deposits are guaranteed up to the $100,000 insurance limit.

The FDIC said that the regulatory oversight teams being put into the institutions would work to minimize operating losses and ensure that the institutions were operated in a safe and sound manner.

The largest of the 38 institutions taken over on Thursday was Murray Savings Association of Dallas with assets of $1.44 billion at the end of 1988. Of the institutions handled Thursday, 12 were located in California and 11 in Texas.

The 38 institutions included:

CALIFORNIA: Cabrillo Savings Bank, Hayward; Founders Savings and Loan Association, Los Angeles; Royal Oak Savings and Loan Association, Manteca; Unified Savings Association, Northridge; City Federal Savings and Loan Association, Oakland; First California Federal Savings Association, Orange; Arrowhead Pacific Savings Bank, San Bernardino; Gateway Savings Bank, San Francisco; Perpetual Savings Association, Santa Ana; Washington Savings sand Loan Association, Stockton; Independence Savings and Loan Association, Vallejo; City Savings and Loan Association, Westlake Villa. …

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