A former Texas thrift executive has been banned from banking and ordered to pay $1.25 million in restitution in connection with the failure of two thrifts.

John Henderson Jr. was chairman and chief executive officer of Home Savings and Loan Association in Lufkin and Southland Savings Association in Longview when the thrifts collapsed in 1988. He was accused by the Office of Thrift Supervision of unsafe lending practices relating to eight acquisition, development, and construction loans that resulted in losses of about $8 million.

Mr. Henderson has consented to OTS' prohibition order and agreed to pay $150,000 in cash within 10 days, according to the OTS. The remaining $1.1 million will be paid out over the next four years.

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