Progressive S&L; settled its investor dispute.

The Alhambra-based savings institution said it has agreed to allow a New York investment firm, Greenfield Partners, to proceed with its previously announced $10-million recapitalization plan that will give Greenfield 60% ownership in the savings and loan. The agreement pushes aside a competing bid from Orange County investor James Carter. The agreement still must be approved by regulators and Progressive Savings shareholders.