U.S. BANK BOARD TAKES OVER INSOLVENT THRIFT
The Federal Home Loan Bank Board said
it closed down the insolvent United Federal Savings and Loan
Association of Durant, Okla, and turned its insured deposits
and other assets and liabilities over to a newly created,
federally chartered thrift.
    It said the failed thrift's four offices would reopen
tomorrow under Bank Board management.
    United, with assets of 9.31 mln dlrs, was closed because it
had substantially dissipated its assets and earnings due to
federal law violations and unsafe and unsound practices, the
thrift regulatory agency said.
    The Bank Board faulted the failed thrift for its large
holdings of substandard loans made in 1984-85 due to "imprudent
underwriting policies and controls on loans for construction
and other purposes throughout the United States."
    It also charged the thrift had violated federal rules
governing conflicts of interest, loans to a single borrower and
changes of control.
    The thrift was the 27th federally insured savings and loan
to be closed down by the bank board so far this year.
 Reuter
