Royal Trustco Cuts Glenfed Stake

Royal Trustco Ltd., the Toronto financial services firm that bought the failed Pacific Savings Bank in Costa Mesa, has cut its stake in Glenfed Inc. from 9.44% to 6.7%, or 2.04 million common shares.

Royal Trustco must cut its stake in Glenfed, a savings and loan holding company, because federal regulation prohibits the owner of one federally insured S&L; from holding more than 5% of an S&L; that it does not control, according to a filing with the Securities and Exchange Commission.

Royal Trustco also owns Pacific First Financial Corp. in Seattle, a savings and loan holding company that is managing Pacific Savings, now called Pacific First Bank.

Glenfed is the Glendale holding company for Glendale Federal Bank.

Royal Trustco sold 836,400 Glenfed shares between Jan. 19 and Jan. 26 for $13.02 to $17.02 a share. It plans to sell enough Glenfed shares to reduce its stake to below 5%.