The former chief executive of Crossland Savings Bank - who was asked to stay on after the FDIC took over the failed thrift in 1992, only to be fired by his new FDIC-appointed boss - has dropped a suit against the bank and the agency after receiving payments totaling $689,000.
A lawyer for Frank A. Dellomo, who worked for New York-based Crossland for 42 years and is now 62 years old, said the suit alleged age discrimination and a variety of other complaints stemming from the firing.
Alan Whitney, spokesman for the Federal Deposit Insurance Corp., said its $500,000 payment to Mr. Dellomo involved a special pension deal for top Crossland executives. The FDIC's receiver had initially thrown out the pension arrangement as a "burdensome contract," but agency higher-ups later decided should be honored.
Crossland, which is being acquired by Republic New York Corp., paid its $189,000 share of the settlement last week.
"Christmas came a little early for Frank," said Mr. Dellomo's lawyer, Bruce G. Behrins of the Staten Island, N.Y., firm of Behrins & Behrins.