GLENDALE, Calif - Glendale Federal Bank said it has asked the U.S. Court of Appeals for the Federal Circuit to reconsider its 2-to-1 ruling that overturned a lower court's finding of breach of contract by the government against the thrift.
In asking for a hearing before the full court, the troubled thrift said the ruling has "far-reaching implications" because it "authorizes the government to directly abrogate any government contract right, without liability, simply by enacting contrary legislation or regulations."
Glendale fell out of capital compliance after the government revoked a previous agreement permitting it to count acquisition-related goodwill as part of its capital.
Glendale Federal owns 215 bank offices in California, Florida, and Washington State. It said the court asked the government to respond to the rehearing request by Friday.