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Second-Largest Washington S&L Headed for Receivership

July 18, 1991

WASHINGTON (AP) _ The financially troubled Perpetual Savings Bank, second largest S&L in the Washington area, has agreed to be put into receivership and sold with federal government assistance, it was announced Thursday.

The announcement came a day after the government’s Office of Thrift Supervision rejected the bank’s plan to restore finances drained by loan losses stemming from the weak Washington-area real estate market.

The announcement said the bank is discussing a sale with Mellon Bank Corp. of Pittsburgh and other financial institutions.

Any sale would be by competitive bid and Mellon, admitting interest in a purchase, said it could not be sure it would get Perpetual.

Perpetual, with $3.7 billion in assets, reported a net loss of $94.9 million during the six months that ended June 30. It has 61 branches in the District of Columbia, Maryland and Virginia.

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