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GLENDALE FEDERAL BANK ANNOUNCES OUTCOME OF SECOND STATUS CONFERENCE WITH GOVERNMENT ON GOODWILL LAWSUIT

 WASHINGTON, Feb. 18 /PRNewswire/ -- At the urging of Glendale Federal Bank and over the opposition of government attorneys, Chief Judge Loren A. Smith of the United States Court of Federal Claims again ordered the government and the bank to explore areas of potential agreement on Glendale Federal's damages claims in a pending supervisory goodwill lawsuit.
 Smith acted at a status conference held Feb. 17, to review the parties' progress in complying with the court's Feb. 4 order, which instructed the parties to seek means to avoid what the court has termed "an historic legal irony of unparalleled cost and waste."
 Joe Hollingsworth, attorney for Glendale Federal, said, "We believe that the process established by the court to narrow differences and resolve issues can work if the government moves ahead with good faith, common sense and a willingness to follow the court's instructions."
 Government attorneys argued that the court should abandon its efforts to identify means for simplifying resolution of the damages issues until the government's appeal of the court's July 1992 judgment in favor of Glendale Federal has been finally resolved.
 The court ordered Glendale Federal to furnish the government by March 5 a list of legal issues and factual stipulations regarding the bank's damages claims. The court directed the government to identify those stipulations to which it would agree and explain the basis for any disagreements by April 2. The court scheduled a status conference for April 14.
 In July 1992 the Court of Federal Claims ruled that the government was liable to Glendale Federal for damages suffered as a result of the government's breach of contract. The government appealed the ruling and an appellate court opinion is expected in the next several months.
 In separate statements, Glendale Federal has urged that the government settle its claims, noting that the public policy dilemma facing the government is a choice between incurring a resolution cost of $3 billion-4 billion, while still facing the potential liability of the full claim for recovery of damages, and a settlement with the bank for approximately half of the $1.4 billion claim for damages alone, an action that would restore Glendale Federal to full capital compliance.
 Glendale Federal Bank is the primary subsidiary of GLENFED Inc. (NYSE: GLN) the nation's fifth largest savings bank. It provides community banking services through 215 banking offices in California, Florida and Washington state.
 -0- 2/18/93
 /CONTACT: Joe Hollingsworth for GLENFED, 202-898-5800/
 (GLN)


CO: GLENFED Inc.; Glendale Federal Bank ST: California IN: FIN SU:

KJ -- LA027 -- 7822 02/18/93 11:10 EST
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Date:Feb 18, 1993
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