California Federal Bank's Statement On Supervisory Goodwill Decision.SAN FRANCISCO--(BUSINESS WIRE)--April 18, 1999-- California Federal Bank California Federal Bank, often abbreviated to "Cal Fed", was a savings and loan bank in California. It existed from 1926 until 2002, when its parent company Golden State Bancorp was acquired by Citigroup, resulting in the bank being merged into Citibank. (Cal Fed), a subsidiary of Golden State Bancorp Inc. (NYSE NYSE See: New York Stock Exchange : GSB GSB Graduate School of Business (Stanford) GSB Graduate School of Business (Chicago) GSB Government of the Student Body (Iowa State University, Ames, IA) ), today said it is very disappointed with Friday's decision by the Court of Federal Claims. After preliminary review, Cal Fed said that it believes that the decision is flawed, and that it comports neither with applicable law nor with the extensive evidence and testimony presented at trial. Coming nearly ten years after the government broke its promises to Cal Fed, the $23.3 million award falls far short of Cal Fed's actual damages. Cal Fed intends to pursue appropriate post-trial remedies and will seek a reversal in the Court of Appeals. San Francisco-based Golden State Bancorp, with $55 billion in assets, is the publicly-traded parent company of California Federal Bank. Cal Fed is the second-largest savings and loan savings and loan n. a banking and lending institution, chartered either by a state or the Federal government. Savings and loans only make loans secured by real property from deposits, upon which they pay interest slightly higher than that paid by most banks. in the U.S. in terms of assets, with more than 350 retail deposit branches in California and Nevada. California Federal has issued Contingent Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Recovery Interests (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CALGZ) and Secondary Contingent Litigation Recovery Participation Interests (NASDAQ : CALGL) representing potential interests in a recovery by California Federal in its supervisory goodwill litigation. Independently, on May 7, 1998 Golden State Bancorp issued Litigation Tracking Warrants(TM)(NASDAQ: GSBNZ) to its shareholders, which allow warrant holders to receive GSB common stock equal to 85% of any final damage award paid, net of expenses and taxes, in the separate Glendale Federal supervisory goodwill litigation. |
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