WASHINGTON -- The Office of Thrift Supervision is seeking $119 million in restitution and $3 million in penalties from Cityfed Financial Corp. and its directors, the agency announced Friday.

That Nantucket, Mass., holding company was the parent of Bedminster, N.J.-based City Federal Savings Bank until December, 1989, when the the $10.4 billion-asset thrift failed. The OTS charged that the holding company and directors violated a net worth agreement.

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