Regulators Put Five Large S&Ls on Auction Block
WASHINGTON (AP) _ Federal regulators announced Wednesday they were selling five of the largest failed savings institutions under their control, including a Texas thrift once owned by the former owner of the Dallas Cowboys.
David C. Cooke, director of the Resolution Trust Corp., the new agency created earlier this month to dispose of bankrupt S&Ls, said the five, with assets totaling $10.8 billion, will be the first major institutions returned to private ownership.
-Bright Banc Savings Association, Dallas, with $4 billion in assets, formerly owned by H.R. ″Bum″ Bright, once one of the nation’s 50th wealthiest men and the former owner of the Dallas Cowboys of the National Football League.
-San Antonio Savings Association, San Antonio, with assets of $2.5 billion.
-Baltimore Federal Financial, Baltimore, with $1.6 billion in assets. It was one of the first three S&Ls seized by the government on Feb. 7, the day after President Bush announced his S&L proposal.
-Broadview Federal Savings Bank, Independence, Ohio, with $1.6 billion in assets.
-Skokie Federal Savings and Loan Association, Skokie, Ill., with assets of $961 million.
Together, the institutions serve 954,000 depositors. They are the first transferred to the RTC’s major transactions division, which will begin meeting with potential buyers.
Cooke said the institutions already have ″attracted considerable investor interest nationwide.″
Cooke’s announcement came one day after his agency’s overseers cleared the RTC to get started on large, complex deals. The RTC is run by the Federal Deposit Insurance Corp., the independent regulatory agency, but the $50 billion in bailout spending authorized in this month’s S&L bill is controlled by an administration oversight panel headed by Treasury Secretary Nicholas F. Brady.
The regulators and the administration overseers had been squabbling over the RTC’s autonomy. Regulators had saidthey were ready to get to work, but could not because the oversight board had forbid the RTC from tackling any complex deals until the panel could settle on policies governing the transactions.
In a directive issued late Tuesday, the oversight board told the RTC it could get started, but the panel said it must be consulted before completion of transactions involving financing or loss guarantees.
Since it began operating on Aug. 9, the RTC has closed 11 small S&Ls, transferring their deposits to other institutions or paying off customers directly.
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