Regulators Seize Kansas S&L;: Federal regulators seized...
From Times Staff and Wire Service Reports
Regulators Seize Kansas S&L;: Federal regulators seized the largest thrift in Kansas, Franklin Savings Assn. of Ottawa, accusing it of “operating in an unsafe and unsound condition.” The Resolution Trust Corp. said the thrift, with $11.4 billion in assets, will now operate under government control. Regulators said that all nine Franklin branches will remain open and that all deposit accounts are protected up to the $100,000 federal insurance limit. Franklin specialized in a complex financial strategy in which it accepted high-rate deposits from Wall Street brokers, investing them in mortgage-backed securities and using futures contracts to protect itself from interest-rate swings.
