DALLAS--First City Bancorporation has agreed to stall its wide-ranging lawsuit against banking regulators, in an attempt to reach a settlement of its claims against the Federal Deposit Insurance Corp. and the Texas Banking Commissioner.

All three parties said Friday they agreed to the moratorium until Dec. 6 to free up negotiators to try and settle the $3 billion lawsuit that First City filed Sept. 24 in federal court.

The suit alleges that regulators illegally seized control of Houston-based First City in October, 1992. Shortly after the failure of the bank, bondholders forced the company into involuntary bankruptcy.

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