BANKING & FINANCE - Sept. 1, 1993
From Times Staff and Wire Reports
Great Western Financial Completes Bad-Loan Sale: The parent of Great Western Bank said it completed the sale of about $200 million of bad single-family mortgage loans to a subsidiary of Bear Stearns Cos., a transaction that will result in an additional third-quarter provision for losses of about $50 million. However, the sale does not significantly reduce Great Western’s total non-performing assets, which now stand at $1.7 billion, or 4.50% of total assets, a relatively high figure. H.F. Ahmanson, Shawmut Bank and other lenders have also sold off bad mortgage loans in bulk. So far this year, Great Western has sold off about $643 million of troubled assets, compared to $144 million in the same period of 1992.
