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FIRST FEDERAL SAVINGS BANK OF PUERTO RICO REACHES SETTLEMENT WITH INSURANCE COMPANY AND FORMER PRESIDENT

 FIRST FEDERAL SAVINGS BANK OF PUERTO RICO REACHES SETTLEMENT
 WITH INSURANCE COMPANY AND FORMER PRESIDENT
 SAN JUAN, Puerto Rico, July 2 /PRNewswire/ -- First Federal Savings Bank of Puerto Rico (NASDAQ: FFPR) announced today that it has reached a settlement with Reliance Insurance Company ("Reliance") its indemnity bond carrier, and with Mariano J. Mier, its former chairman and chief executive officer.
 The settlement covers all matters relating to Mier's employment by the bank, and the bank's litigation against Mier to recover losses resulting from its dealings during his tenure with Printon Kane & Co., Printon Kane Capital Corp. (later known as Cambrian Capital), certain present and former officers of Printon Kane and Cambrian (the "Printon Kane parties") and Charles Ramos, former president of Cambrian.
 Under the settlements, First Federal will receive $1.9 million from Reliance in settlement of its claims under the indemnity bond in connection with $3.5 million in loan and debenture transactions with Cambrian Capital which it wrote off as a loss in June 1990. The bank will also receive a payment of $90,000 from Mier and will enter into a mutual release of liability with Mier covering all liability arising out of the Printon Kane/Cambrian transactions and Mier's employment agreement with the bank.
 First Federal will continue its lawsuit in Federal District Court in New York in which it alleges common law and federal securities law fraud and federal RICO violations against the Printon Kane parties in connection with the loan and debenture transactions.
 First Federal expressed satisfaction that its dispute with Mier has been resolved amicably without litigation.
 First Federal also reached an agreement with Reliance on the case of its former Branch District Manager, Jose M. Alcocer, whereas the total losses to be reimbursed to the bank by Reliance will not exceed $2.7 million. Under this agreement Reliance will pay $1 million immediately to the bank, and the remaining $1.7 million will be reimbursed as the individual cases are resolved.
 The bank expects no significant impact to its net income as a result of the settlements reached today with Reliance Insurance Company.
 First Federal Savings Bank, with total assets of $1.9 billion as of March 31, 1992, is the largest savings institution in Puerto Rico. It operates 30 branches in Puerto Rico and the U.S. Virgin Islands, in addition to 3 branches in Miami. The branches in Miami are operated through First Florida Savings Bank, wholly owned subsidiary of First Federal. With total capital of $77.35 million, the bank is in full compliance with all capital requirements.
 -0- 7/2/92
 /CONTACT: Annie Astor de Carbonell, executive vice president and chief financial officer of First Federal Savings Bank of Puerto Rico, 809-724-1715/
 (FFPR) CO: First Federal Savings Bank of Puerto Rico ST: IN: FIN SU:


JJ-AW-JB -- FL014 -- 6295 07/02/92 16:02 EDT
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Publication:PR Newswire
Date:Jul 2, 1992
Words:476
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