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GREAT WESTERN SELLS NON-PERFORMING LOANS; BULK SALES WILL REDUCE LEVEL OF NON-PERFORMING ASSETS

 CHATSWORTH, Calif., Dec. 14 /PRNewswire/ -- Great Western Financial Corp. (NYSE: GWF) announced today that it has completed the sale of $122 million of single-family non-performing loans and real estate to an unnamed financial services company and the sale of $173 million of commercial loans to Whitehall Street Real Estate Limited Partnership III, a fund managed by Goldman Sachs & Co. Terms of the agreements were not disclosed.
 A loss provision of $100 million was established in the third quarter of 1993 in anticipation of these bulk sales and one additional bulk sale which is expected to close prior to year-end.
 Including these bulk sales, the pending bulk sale, and as a result of a combination of auctions and retail sales, Great Western will have sold $1.6 billion in distressed assets in 1993. This compares with sales of $239 million in 1992.
 At Sept. 30, 1993, Great Western exceeded all fully phased-in federal capital requirements for well-capitalized institutions. Great Western Bank's leverage capital ratio was 5.67 percent compared with a minimum federal standard for well-capitalized institutions of 5 percent. Risk-adjusted capital was 12.05 percent compared with a minimum federal standard for well-capitalized institutions of 10 percent.
 With assets of $38 billion, Great Western Financial Corp. is a diversified financial services company operating more than 1,100 mortgage lending, retail banking, and consumer finance offices nationwide. The company's principal subsidiary, Great Western Bank, is a mortgage-oriented consumer bank which operates extensive banking branch networks in California and Florida.
 -0- 12/14/93
 /CONTACT: Ian Campbell, 818-775-3773, or (in Florida) Gordon Turner, 407-642-5583/
 (GWF)


CO: Great Western Financial Corp.; Whitehall Street Real Estate Limited
 Partnership III ST: California, Florida IN: FIN SU: TNM


JL-LS -- LA006 -- 3495 12/14/93 09:01 EST
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Publication:PR Newswire
Date:Dec 14, 1993
Words:291
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