LOS ANGELES - Glenfed Inc. has been notified that the U.S. government will appeal a July U.S. Claims Court finding that the government breached a contract when it forced Glenfed to change the treatment of goodwill on it books.
Glenfed, which reported this week a $26 million loss for its fiscal fourth quarter and a $120.9 million loss for the year, had been urging the government to reach a settlement rather than pursue potentially time-consuming appeals in federal and possibly state courts.
Glenfed is one of numerous thrifts affected by regulations that required them to accelerate the removal of goodwill from capital.
The government had allowed such accounting as compensation for taking over troubled thrifts.
No Talks Recently
Glendale's challenge focused on its 1981 acquisition of First Federal Savings and Loan Association in Florida.
A spokeswoman for the Glendale, Calif, thrift, which has $17.9 billion in assets, said there have been no recent discussions between Glenfed and government lawyers, but an out-of-court settlement is still desired.
