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FIRST CITY BANCORPORATION OF TEXAS, INC. PROTESTS FDIC SEIZURE OF BANKS

 HOUSTON, Feb. 16 /PRNewswire/ -- Management of First City Bancorporation of Texas, Inc. ("First City") announced today it has formally protested the FDIC's seizure of the 18 banks that were seized by regulators under the so-called cross-guarantee provisions of Financial Institutions Reform, Recovery and Enforcement Act of 1989. The banks were placed under FDIC receivership on Oct. 30, 1992 when the FDIC claimed that it would suffer losses of approximately $500 million.
 First City's protest of the FDIC's seizure of the 18 banks was made in light of the FDIC's disclosure on Jan. 27, 1993 that it had accepted purchase offers to buy most of the assets of the First City banking system for a $434 million premium. The FDIC further stated that as a result of the impending sale it now expects that there will be no loss to the Bank Insurance Fund. First City has been advised by its counsel that in light of this new information, federal law requires the FDIC to revise the loss estimate it made when it seized the banks.
 The FDIC, which is in control of the liquidation process, has not discussed with First City's management the terms of the proposed sales of the seized First City Bank assets or the timing of payment of any amounts owed to First City. As a result, First City management is not able to verify how much it may receive or when any such payment may be made. The amount First City ultimately receives will depend on a multitude of factors, primarily the ability to efficiently dispose of remaining receivership assets at fair prices. First City management currently has no control over this process.
 -0- 2/16/93
 /CONTACT: Robert Brown, executive vice president of First City Bancorporation of Texas, Inc., 713-228-1309/


CO: First City Bancorporation of Texas, Inc. ST: Texas IN: FIN SU:

WB -- NY119 -- 6934 02/16/93 16:12 EST
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Publication:PR Newswire
Date:Feb 16, 1993
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