RTC Sues Drexel: The Resolution Trust Corp.,...
From Times Staff and Wire Reports
RTC Sues Drexel: The Resolution Trust Corp., the federal agency in charge of the thrift bailout, has filed suit against a unit of Drexel Burnham Lambert on behalf of Western Empire Federal Savings in Irvine. The suit contends that the Drexel unit improperly held $16.5 million in mortgage-backed securities pledged by Western Empire as collateral for interest rate swap transactions. Drexel’s bankruptcy filing in February caused those swap agreements to default.
