Metropolitan To Get Payout
MINNEAPOLIS - Metropolitan Financial Corp. said it had been told to expect prepayment from the Resolution Trust Corp. and Federal Deposit Insurance Corp. of $365 million in notes acquired with its 1988 deals for seven insolvent thrifts in Minnesota and Iowa.
A formal notice from the federal agencies said the payment would be made on Sept. 30. The notice complied with the 1988 agreements, which required word 30 days in advance, Metropolitan Financial said.
Paul A. Lipetzky, president and chief operating officer of the Minneapolis-based thrift company, said the notice and expected prepayment "are part of the process of effectively settling the assistance agreements" of 1988.
A Choice of Uses
"This payment of the principal amount of the notes will allow us the flexibility to use the proceeds to either prepay wholesale borrowing or reinvest at current taxable yields, enhancing net interest income," Mr. Lipetzky said.
"Additionally, we immediately begin to generate taxable income, enabling us to utilize our large federal income tax operating-loss carryforwards."
Metropolitan Financial Corp. is a multistate holding company anchored by the $4.5 billion-asset Metropolitan Federal Bank, Fargo, N.D., and Edina Realty, a Minneapolis-area real estate broker.