WASHINGTON -- The Federal Deposit Insurance Corp. hopes to sell Brooklyn-based Crossland Federal Savings Bank for $300 million within three weeks, the agency announced Friday.
In a prospectus filed with the Office of Thrift Supervision, the FDIC said it planned to go ahead with previously announced plans to sell the $5.3 billion-asset thrift to institutional investors.
The deal was delayed when Dime Savings Bank of New York expressed interest. A Dime spokesman declined to comment Friday, but a regulatory source said it was still possible Dime could bid.
If the FDIC gets $300 million, Crossland will end up costing the government about $850 million. That's about $ 100 million more than the FDIC staff predicted when Crossland was seized in January 1992.
According to the prospectus, the FDIC for the next five years will assume 80% of the losses on Crossland's portfolio that exceed its $179 million loan-loss reserve.
