P.M. BRIEFING : Losses at Privately Run S&Ls; Doubled in July-Sept. Quarter
Losses at privately run saving and loans more than doubled in the July-September quarter to $631 million, the government said today.
Timothy Ryan, director of the Office of Thrift Supervision, blamed the decline on the real estate slump afflicting both single-family homes and commercial projects.
Third-quarter losses compared to a second-quarter loss of $302 million and a first-quarter loss of $373 million. The deterioration occurred even though the government has been closing down the worst institutions. At the end of September, there were 2,389 privately run S&Ls;, 208 fewer than at the start of the year.
Twenty-three percent of the private thrifts lost money, while 77% reported profits. S&Ls; in 25 states and the District of Columbia earned profits, while 25 states reported losses.
The biggest loss--$269 million--came in California.