Second-Largest Washington S&L Headed for Receivership
Jul. 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.