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CALIFORNIA FEDERAL BANK SUBMITS CAPITAL PLAN, FILES SUIT TO RECOVER GOODWILL

 CALIFORNIA FEDERAL BANK SUBMITS CAPITAL PLAN,
 FILES SUIT TO RECOVER GOODWILL
 LOS ANGELES, March 2 /PRNewswire/ -- California Federal Bank, F.S.B., the principal subsidiary of CalFed Inc. (NYSE: CAL), said today that it had submitted a proposed capital plan to the Office of Thrift Supervision (OTS).
 The proposed plan was requested by the OTS as a consequence of the phaseout of approximately $86.6 million of qualifying supervisory goodwill from the bank's regulatory capital on Jan. 1, 1992, as required by the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). The proposed plan is subject to review and approval by the OTS.
 In a separate action, California Federal Bank commenced litigation against the United States in the U.S. Court of Claims in Washington, D.C. seeking to recover the value of the bank's supervisory goodwill. Under FIRREA, such goodwill may not, following Jan. 1, 1995, be treated as a capital asset.
 The lawsuit alleges that the treatment of supervisory goodwill mandated by FIRREA constitutes a breach of contracts between the bank and the United States and an unlawful taking of property by the United States without just compensation or due process in violation of the U.S. Constitution.
 The bank's supervisory goodwill arose in the early 1980s when the bank agreed to acquire six failing savings and loan institutions under the auspices of the federal government. At the time the transactions were completed, supervisory goodwill totaled more than $600 million.
 California Federal Bank provides retail banking services and home mortgage loans through 183 branches in California, Florida, Nevada and Georgia.
 -0- 3/2/92
 /CONTACT: James F. Hurley, 213-930-9750, or Rhanda K. Dunn, 213-932-2283, both of CalFed/
 (CAL) CO: CalFed Inc.; California Federal Bank ST: California IN: FIN SU:


KJ-JL -- LA007 -- 3734 03/02/92 08:03 EST
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Date:Mar 2, 1992
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