WASHINGTON -- Arthur Andersen & Co. has paid the Resolution Trust Corp. $65 million to settle government changes of professional negligence, an agency official said.

The RTC had filed a $400 million suit against the accounting firm accusing it of negligence in its auditing of Houston-based Ben Franklin Savings Association. That thrift collapsed in 1989 at a cost of $1 billion to the government.

The accounting firm reached a global settlement with the RTC.

Separately, the Office of Thrift Supervision announced that Arthur Andersen has agreed to follow certain reporting and other standards in its auditing of thrifts.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.