Tennessee S&L; Closed: Federal regulators closed insolvent...

Tennessee S&L; Closed: Federal regulators closed insolvent Valley Federal Savings Bank of Dayton, Tenn., Friday, and the Federal Savings and Loan Insurance Corp. said it would begin a direct payment of $12.9 million to insured depositors. The Federal Home Loan Bank Board directed FSLIC to begin the payment of insured funds because a merger or an acquisition could not be arranged. As of Dec. 31, Valley had $11.9 million in assets, $15.7 million in liabilities, $12.9 million in deposits and negative regulatory capital of $3.5 million.