WASHINGTON -- New England Federal Savings Bank of Wellesley, Mass., was placed in receivership on Friday, and the Office of Thrift Supervision chartered a federal mutual institution to take its place.

The new company, New England Federal Savings Association, will operate under a Resolution Trust Corp. conservatorship.

New England Federal had $146.4 million in assets, 14% of them classified as substandard or worse, and tangible capital of only 1.36% of assets. The OTS said it was "operating in an unsafe and unsound condition" and had no prospect of replenishing capital without federal assistance.

The OTS also placed in receivership Liberty Savings Bank of Warrenton, Va., which had $103.3 million in assets and a tangible capital ratio of negative 1.31%. The new RTC institution was named Liberty Federal Savings Bank.

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