Government To Aid More Than a Dozen Ailing Institutions
WASHINGTON (AP) _ Savings and loan regulators are preparing to commit billions of dollars in federal assistance over the next 10 days to sell or merge more than a dozen ailing institutions, a federal regulatory official said late Tuesday.
Karl Hoyle, a spokesman for the Federal Home Loan Bank Board, said the oard was working on several deals, but cautioned that none have received final approval.
He declined to say where the institutions were located, but recent speculation has centered on Oklahoma as the next area ripe for major bank board action.
In recent weeks, the bank board has announced it was spending more than $8 billion to assist ailing S&Ls, including a major deal in Texas, which like Oklahoma has been hard hit by the depression in the oil drilling industry.
Hoyle was responding to a report in Wednesday editions of The Washington Post that the bank board was preparing this week to spend an additional $1.2 billion to sell or merge ″a dozen or so″ institutions in the Southwest.
Hoyle said that if all goes according to plan over the next week and a half, the bank board will spend substantially more than that in several large transactions in a number of states.
On another front, the bank board was facing a self-imposed deadline to wrap up negotiations with the Fort Worth, Texas-based Robert M. Bass Group to acquire American Savings and Loan Assocation of Stockton, Calif., one of the nation’s largest S&Ls.
The bank board began negotiating with the Bass Group exclusively on April 21 and has twice extended the deadline, with the most recent extension expiring Thursday.
Hoyle said the bank board would have an announcement regarding American by Thursday.