CALFED INC. RECEIVES OTS LETTER
CALFED INC. RECEIVES OTS LETTER LOS ANGELES, Nov. 14 /PRNewswire/ -- CalFed Inc. (NYSE: CAL),
whose principal subsidiary is California Federal Bank, announced today that, as expected, it had been notified by the Office of Thrift Supervision (OTS) of the regulator's intention to call upon CalFed Inc. for a capital contribution in the event the bank does not meet certain proposed individual minimum capital requirements if they are imposed.
The regulatory letter follows by a week the OTS proposal that California Federal Bank add $375 million to its equity capital. The bank indicated in its Nov. 6 announcement of the proposal that it expected the OTS to seek to require CalFed Inc. to contribute capital to the bank in the event the proposal became effective. The letter notified CalFed Inc. that the OTS intends to submit a claim to CalFed Inc. for a contribution to the bank's capital pursuant to various net worth maintenance stipulations previously furnished by CalFed Inc. The letter requests that CalFed Inc. preserve its assets and make such assets available to the bank upon demand of the OTS. The letter purports to direct CalFed Inc. not to transfer any of its assets except for the performance of contractual obligations, the payment of normal business expenses, and actions taken in the ordinary course of business. CalFed Inc. said that it will respond to the OTS both with regard to the proposed increased capital requirement, which the company has termed excessive, and to the regulatory letter. -0- 11/14/91 /CONTACT: James F. Hurley, 213-930-9750 or Rhanda Kahawaii Dunn 213-932-2283, both of CalFed Inc./ (CAL) CO: CalFed Inc. ST: California IN: FIN SU: SE -- LA006 -- 4245 11/14/91 08:15 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Nov 14, 1991|
|Previous Article:||LARSON-DAVIS INFORMATION SYSTEMS ESTABLISHES RELATIONSHIP|
|Next Article:||SOUTHERN NATIONAL, WORKMEN'S BANCORP AGREE TO MERGE|