Parent Firm to Bolster Republic Federal Funding

Republic Federal Savings & Loan said its parent company, Weyerhaeuser Co., has agreed to inject $35 million into the Woodland Hills thrift to help Republic meet new federal capital requirements.

The rules, which took effect Dec. 7, are aimed at bolstering S&L; capital levels so they have a greater cushion against losses from bad loans. Weyerhaeuser, based in Tacoma, Wash., is primarily a major paper products concern.

Republic also said it has been shedding assets and cutting costs to improve its capital base. The thrift has sold $400 million of loans in recent months, and its assets as of Nov. 30 totaled $1.7 billion.