A federal judge ruled against Security Pacific...

A federal judge ruled against Security Pacific and the U.S. Comptroller of the Currency in a dispute with securities dealers over the bank company’s sale of mortgage-backed securities. U.S. District Judge Kevin Duffy in New York rejected a comptroller’s decision to allow Los Angeles-based Security Pacific to sell securities backed by its own mortgage loans. A bank official said Security Pacific was considering an appeal. Separately, Security Pacific said it plans to add up to $100 million in bad loans from its Arizona subsidiary to its books in the fourth quarter. But it said that earnings for the quarter should remain at predicted levels.