Getty Trust Official Settles Thrift Regulatory Charges

Barry A. Munitz, president of the J. Paul Getty Trust, and four other former savings and loan officials have agreed to pay $1 million to settle charges stemming from the $1.6-billion failure of United Savings Assn. of Texas.

The five--Munitz, Jenard M. Gross, Arthur S. Berner, Ronald Huebsch and Michael Crow--settled the case without admitting or denying charges brought by the federal Office of Thrift Supervision that they violated minimum capital requirements, engaged in unsound real estate lending and pay practices and made false statements to regulators.

Munitz, who said in a statement that he agreed to the settlement to avoid future litigation costs, was a director of the Houston-based thrift before it failed in 1988, and vice chairman of its parent company, Maxxam Inc. The OTS investigation began in 1996, when Munitz was chancellor of California State University.

As a condition of the settlement, Munitz is prohibited from making any decisions involving compensation of employees or officials of a financial institution. He also is restricted from making investment decisions for a financial institution or from filing an application with a federal regulator. Munitz said the restriction, part of a short-term cease-and-desist order that expires in three years, will not affect his duties at the trust. Munitz said he is not personally responsible for paying any of the settlement; he has said in the past that he would be indemnified by Maxxam.

Regulators are continuing to pursue charges against Maxxam Chairman Charles Hurwitz. Administrative hearings ended last month, but a decision is not expected until later this year.