Trigg Steps Down as Chief of Family S&L; : Yields to Regulators Scrutinizing Acquisition

Oliver A. Trigg Jr. has resigned as chairman and chief executive of Family Savings & Loan, the nation’s second-largest black-owned thrift, under pressure from federal and state thrift regulators, it was learned Thursday.

Trigg’s actions at Family Savings, headquartered in Los Angeles’ Crenshaw district, have come under the scrutiny of regulators during the past several months. In particular, regulators have raised questions about the thrift’s $5-million acquisition of eight acres of undeveloped land in Whittier last July.

Trigg’s lawyer, Arthur H. Barens, said Trigg agreed to step aside, at least temporarily, while the regulators conclude their review. “It was a combination of them suggesting it and our agreeing it was appropriate,” Barens said.

Trigg remains the thrift’s largest shareholder, with 51% of the stock.

Barens said Trigg is negotiating with regulators concerning his future role at Family Savings. The attorney said it is possible that regulators could strip Trigg of the right to vote his shares by placing them in a trust. On the other hand, the lawyer said, Trigg might resolve his differences with the regulators and return to an executive post with the thrift.

No Wrongdoing Charged

Trigg, 37, acquired control of Family Savings last July for $1.24 million and took over as its chief executive at that time. He had been its chairman since May, 1986.

Family Savings’ condition improved, at least initially, under Trigg’s leadership. Its profits improved in 1986, rising to a record $1.5 million. Last year, however, profits slid to $493,000.

Barens said Trigg has not been accused of any wrongdoing. He said Trigg and regulatory officials disagree over “the application of business judgment” on certain property transactions, including the land in Whittier. He said regulators also raised questions about certain “administrative procedures” at the thrift.

William Crawford, a commissioner of the California Department of Savings and Loan, refused to discuss Family Savings in detail, saying only, “I think we’ve solved their problems on an interim basis.” Federal regulators would not comment.

Appraisals of the Whittier land by the Federal Home Loan Bank of San Francisco have fallen short of the $5 million Family Savings paid for it. Barens said the highest of the FHLB’s three appraisals was “in the mid-$4 million.”

Barens said that although regulators have questioned that purchase, two of the 13 parcels of undeveloped land in Whittier that Family Savings bought last July have been sold “at no loss” to the thrift and two more parcels are in escrow. The thrift will not lose money on those sales, either, he said.