Insolvent American Savings, plagued by a continuing...

Insolvent American Savings, plagued by a continuing outflow of savings, is planning to sell up to $2.5 billion in certificates of deposit, the company said. The savings certificates will be marketed through a group of Wall Street brokers, including Merrill Lynch & Co., and will contain assurances from the Federal Savings & Loan Insurance Corp. that buyers will be paid on schedule if the government puts the thrift into receivership, a company spokeswoman said. The spokeswoman said the sale had been planned and is not a direct response to recent problems. American Savings, the principal unit of Financial Corp. of America with 185 retail branch offices in California, has lost about $1.3 billion in deposits since the start of the year.