Bad News Sends HomeFed Stock Down: HomeFedCorp....

Bad News Sends HomeFed Stock Down: HomeFedCorp. stock dropped by $1.375, or 22%, to close at $5 in New York Stock Exchange trading Friday, the day after the savings and loan holding company reported a $176-million fourth-quarter loss and $248-million full-year loss. The company also said it expects its capital to fall below one of the regulatory standards in coming months and that it will have to file a capital plan with regulators. HomeFed disclosed that its problem loans have ballooned to $1.2 billion, or 6.4% of total assets, which led some analysts to expect more losses in 1991. Federal regulators are also conducting audits of HomeFed’s books, which could result in further writedowns. In 1990, the S&L; set aside loan loss provisions totaling $547 million, up from $158 million in 1989. The S&L;, which cut 300 jobs in 1990, also said a new round of layoffs is imminent.