S&L; Cuts Capital Needs: Glenfed Inc., the...
From Times Staff and Wire Reports
S&L; Cuts Capital Needs: Glenfed Inc., the parent of Glendale Federal Bank, said it improved its capital position by paying another party to cover potential losses on $1 billion worth of home loans that it sold to investors. As a result of the move, Glenfed said it now needs about $24 million less capital to meet tougher new federal standards for S&Ls.; The capital standards are designed to force S&Ls; to have a cushion against losses. Glenfed declined to reveal the terms of the deal or name the other party. Glenfed had assets of $25.26 billion as of Dec. 31.
