BANKING & FINANCE - Jan. 20, 1993

Glendale Federal Seeks Damages from U.S.: Glendale Federal Bank has submitted a claim for $1.38 billion in damages as part of its suit against the federal government challenging the 1989 law that stopped thrifts from counting goodwill as an asset. Glendale Federal had taken control of an insolvent thrift in 1981 and, with the government’s approval, counted $734 million in goodwill from the failed institution as an asset. With that value wiped out, Glendale Federal has been struggling to find new capital to meet tougher government standards. Glendale Federal won a ruling in July from a federal judge who said the government is liable for damages for wiping out the value of goodwill. The government has appealed that ruling.