U.S. Spends $890 Million on S&L; Sold to Perelman Firm

Federal regulators spent an estimated $890 million in taxpayer money to bail out a Texas savings institution in a sale to a thrift holding company controlled by financier Ronald O. Perelman.

Perelman’s holding company, on the other hand, is putting up only $10 million.

The Resolution Trust Corp., created in August to dispose of failed thrifts, sold San Antonio Savings Assn. to First Gibraltar Holdings Inc.

The holding company already owns First Gibraltar Bank, a Dallas-based thrift with assets of more than $9 billion. It was formed in 1988 from five smaller insolvent S&Ls; in a much criticized bailout deal that required $5.1 billion in federal assistance and favorable tax breaks.

The name of the San Antonio S&L; will be changed to First Gibraltar Bank, but it will be maintained as a separate financial institution. Earlier this week, the RTC board voted to allow thrifts created in earlier bailouts to bid on newly failed S&Ls.;

However, because Congress has ordered the RTC to review the old bailouts, the agency is requiring First Gibraltar Holdings to maintain the San Antonio institution as a separately capitalized entity.

The RTC said First Gibraltar’s proposal was the cheapest of seven received. The holding company is taking $1.1 billion of San Antonio’s $2.3 billion in assets. And it agreed to assume responsibility for deposits of $2 billion in 220,000 accounts and other liabilities of $750 million.

In return, the RTC agreed to advance $1.6 billion to First Gibraltar. The agency is keeping about $1.1 billion in sour loans. After those are sold, the RTC expects its expenses will total $890 million.

An investor group--MacAndrews & Forbes Holdings Inc.--controls First Gibraltar Holdings. Its investors include Perelman and Revlon Inc.

Dallas newspapers reported earlier this week that Perelman’s group had emerged as the winner of a bidding war. Others reportedly interested in the San Antonio S&L; were NCNB Texas, Banc One Corp. of Columbus, Ohio, and Security Pacific Corp. of Los Angeles, although Security Pacific denied having submitted a bid.