WASHINGTON - Thrifts selling stock for the first time may not favor local depositors who subscribe to buy stock over out-of-town depositors, at least for now, a court has ruled.

The U.S. District Court for the District of Columbia ruled last week that the Office of Thrift Supervision had not followed proper procedures in adopting a provision of its new rule on mutual thrift conversions. That provision required mutual thrifts converting to stock ownership to sell shares first to depositors within a 100-mile radius of the institution.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.