WASHINGTON - Two fedaral king agencies are squabbling over whose budget may have to absorb the cost if either has to shut down the nation's fifth-largest savings and loan, California's Glendale Federal Bank.

According to sources, the interagency debate was summarized in blunt terms in a confidential letter sent last month from the Federal Deposit Insurance Corp., which regulates banks and oversees the S&L insurance fund, to the Office of Thrift Supervision, which regulates thrifts.

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