American Savings and Loan Association in New York City failed this week - the second thrift to go under in 1995.
American Savings' $55 million of deposits were split among Interbank of New York, Apple Bank for Savings, and Broadway National Bank.
The government was stuck with $67 million of the failed thrift's assets.
The Office of Thrift Supervision said a concentration of troubled multifamily housing loans brought down American Savings.
"American's condition stemmed primarily from a strategy of high-yield, high-risk lending initiated in the late 1980s," the OTS said. "The high level of problem assets resulted from poor underwriting and deficient internal controls under prior management, coupled with a soft real estate market in the New York City metropolitan area."