RESCUING THE S&Ls; : Bass’ Plan : After Years of Unrest, American Returns to Roots in Home Loans

American Savings, a fixture in the California home loan business since it was founded in 1885, looks as if it may end the 1980s the way it began the decade: as a traditional mortgage lender.

But the in-between years have been a tumultuous time during which the Stockton-based savings and loan has gone through dramatic changes.

Since 1980, American Savings has gone from the conservative management style of financier S. Mark Taper to the high-roller era of Charles W. Knapp to the wounded-giant days of William J. Popejoy.

Now, under new ownership of Texas billionaire Robert M. Bass, American Savings plans to return to the mold of its powerful California competitors--such as Great Western Bank and Home Savings of America--which have found profitable niches churning out billions of dollars of adjustable-rate mortgage loans every year.

One of Bass’ first major moves was to hire Mario J. Antoci, Home Savings’ No. 2 man, to run American Savings. In a recent interview, Antoci vowed to turn American Savings’ offices into “lending machines” cranking out adjustable-rate mortgage loans.

Though he maintains a low profile, Antoci carries considerable respect on Wall Street from his years at Home Savings. “The selection of Antoci is a signal of the company’s commitment to quit smoking and start running three miles a day,” said Jonathan Gray, thrift industry analyst for Sanford C. Bernstein & Co. in New York.

American Savings began the decade with the aging Taper as chairman and controlling shareholder. The American Savings of those days was an uncomplicated concern that tried to make money (not always successfully) by making mortgage loans and holding down costs.

Knapp changed that strategy abruptly in 1983 when he acquired control of American Savings from Taper in a deal valued at $734 million. American Savings were merged with Knapp’s State Savings & Loan and the combined companies kept the American Savings name, with Knapp’s Financial Corp. of America as the parent company.

FCA and American Savings under Knapp became a go-go place, characterized by generous compensation and perks, breathtaking growth and high-pressure sales personnel who raised deposits on the telephone by offering very high rates of interest.

But Knapp was undone in 1984 after the Securities and Exchange Commission forced FCA to restate its six-month profits to show a large loss instead of an ample profit. The restatement accelerated an already alarming deposit outflow and led to Knapp’s resignation.

Popejoy replaced Knapp as head of FCA and American Savings in August, 1984, but, despite 4 1/2 years of effort, never came close to restoring the financial institution to full financial health. Popejoy initially concentrated on making fixed-rate home loans and buying mortgage-backed securities, but the strategy was eventually undermined by huge losses on Knapp-era development loans and rising interest rates that cut into profit margins. Popejoy resigned as chief executive but will stay with American Savings as a director.

By early 1987, the Federal Home Loan Bank Board started looking for a buyer for American Savings--a move that eventually left the financial institution twisting in the wind as the search dragged on for more than a year.

An attempt to sell American Savings to Ford Motor Co. fell through at the 11th hour early this year, while later talks with Bass veered between hope of a deal and near collapse over various stumbling blocks.

But Bass eventually succeeded after more than eight months of negotiations, and he has pledged through associates that his American Savings will operate traditionally and efficiently.

“There will always be a place for a well-managed thrift institution--one that effectively serves the needs of home buyers and depositors,” Bass aide Bernard J. Carl said. “American is prepared to concentrate its attention on that traditional role.”

THE NEW STRUCTURE OF AMERICAN S & L NEW AMERICAN HOLDINGS INC. Privately owned corporation formed by Robert M. Bass as parent firm for American Savings’ present operations. NEW AMERICAN CAPITAL A corporation set up as a money-raising arm of the parent company. NEW WEST FEDERAL SAVINGS & LOAN The so-called “bad bank” that will keep troubled assets on its books and arrange for their liquidation.

NEW AMERICAN CAPITAL HOLDINGS A company that holds the good assets of American Savings. The Federal Savings & Loan Insurance Corp. has a 30% interest through stock warrants. AMERICAN REAL ESTATE CORP A liquidation arm that will manage and sell off American Savings’ troubled loans. AMERICAN SAVINGS BANK The so-called “good bank” and successor to American Savings & Loan. It has nearly $16 billion in assets. STOCKTON CAPITAL FUND A subsidiary that may invest up to 3% of American Savings Bank’s assets in direct investments.