A judge in Washington ruled Friday that Glendale Federal Bank is entitled to $909 million because of changes in accounting treatment that the government required for regulatory goodwill.
The award is the first in a goodwill case, compensating the California thrift for a 1989 change in policy that affected acquirers of ailing thrifts.
Still pending are about 100 similar claims, collectively seeking more than $20 billion in damages. Glendale merged last year with California Federal Bank and operates under that name. Its parent is San Francisco- based Golden State Bancorp.
The Justice Department is expected to appeal the federal claims court ruling, which was released after the markets closed. For updated coverage, visit www.americanbanker.com.