Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!americast.com!usa-post Newsgroups: usa-today.law From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: law Mon, Jun 29 1992 Date: Mon, 29 Jun 92 05:27:36 EDT Message-ID: 06-29 0000 DECISIONLINE: Business Law USA TODAY Update June 29, 1992 Source: USA TODAY:Gannett National Information Network BIG S&LS NOT JOINING RECOVERY: The savings and loan industry is recovering, but a listing of troubled S&Ls compiled by USA TODAY finds many of the largest thrifts are not part of the recovery. Five of the nation's 10 biggest savings and loans appear on the list of 326 troubled S&Ls. The five S&Ls appeared on the list because their problem assets were bigger than their financial defenses against loan losses. (For more, see special S&Ls package below.) RAIL UNION OFFICIALS UNHAPPY: The nation's trains are moving again, but officials said Sunday it would take through Monday to clear a backlog left by last week's two-day rail shutdown. A bill signed by President Bush early Friday ended the shutdown setting up a 35-day cooling-off period. Union officials reacted angrily: "Workers have one basic right ... to withhold their labor," said John Peterpaul of the machinist union. BOAT'S TRAVEL RESTRICTED: An Iowa riverboat casino's planned launch July 5 may be delayed by a federal judge's order. The judge issued a warrant Saturday restricting travel of the Emerald Lady because the city of Fort Madison claims the boat owes $403,00 in docking fees. The Emerald Lady and sister ship, the Diamond Lady, were to set sail July 5 for Biloxi, Miss. EXECUTIVES ALLOWED TO STAY: The case against alleged mobsters who infiltrated the New York Post's circulation and delivery systems has a twist. Post vice presidents Rick Nasti and Steven Bumbaca, both implicated in the crimes, are still employed and will continue to be, according to a spokesman for Post Publisher Peter Kalikow. The two allegedly colluded with mobsters named last week in a 99-count indictment. JACOBS' DUTIES LIMITED: The Resolution Trust Corp.'s chief attorney has had his duties limited. General Counsel Gerald L. Jacobs has been banned from working on potential lawsuits against former savings and loan officers until his ties with the now-defunct Western Savings and Loan Association in Phoenix, are clarified. RTC recently filed a $1.3 billion racketeering and fraud lawsuit against Western. RJR NABISCO SETTLES FOR $72.5M: RJR Nabisco has reached a $72.5 million settlement with investors who claim a management buyout cheated them of millions of dollars. A bidding war for the company's stock in October 1988 raised the price and ended in a $25 billion sale in February 1989. Related lawsuits say former Nabisco chief executive Ross Johnson planned a buyout before announcing a management takeover attempt. TRUSTEE CLOSES CASCADE STORES: Mounting losses forced federally appointed trustee Kenneth Welt to close retailer Cascade International Inc.'s operations Saturday night. Welt told Bloomberg Business News that he intends to liquidate Cascade's assets at two auctions in mid-July. Cascade, which is under Chapter 11 bankruptcy court protection, is estimated to have a liquidation value of between $250,000 and $350,000. CBS:FOX, MGM SETTLE: The CBS:Fox Co. and Metro-Goldwyn-Mayer Inc. have resolved to their mutual satisfaction the pending litigation brought by CBS:Fox against MGM relating to the distribution of video cassettes, it was announced Friday. The terms of the parties' settlement agreement were not disclosed. DATA BROADCASTING EMERGES: A bankruptcy court reorganization plan for Financial News Network Inc. took effect Friday, resulting in Data Braodcasting Corp. emerging as its successor. DBC issued 15.7 million shares Friday as part of the Chapter 11 plan. Preferred stockholders will get the remaining 9.3 million shares. Each share of FNN common stock will be exchanged for 0.66 share of DBC. SPECIAL PACKAGE ON S&LS: MOST S&LS RECOVERING: The news was basically good for the nation's S&Ls in 1991, according to a study of the industry by USA TODAY. Most S&Ls showed some signs of recovery, but many large thrifts fared poorly. There are 326 S&Ls on a list of troubled thrifts, including five of the nation's 10 largest. The average thrift on the list is nearly twice as big as the average thrift nationwide. CALIFORNIA THRIFTS TROUBLED: Four of the five largest troubled thrifts on the USA TODAY list are in California. The five on the list are HomeFed Bank in San Diego, Dime Savings Bank of New York, California Federal Bank in Los Angeles, First Nationwide Bank in San Francisco, a subsidiary of Ford Motor Co. and Glendale Federal Bank in Glendale, Calif. THRIFTS' FUTURES UNCERTAIN: Being on the list of troubled thrifts does not mean the thrifts will fail. Also, since the list was completed Dec. 31, 1991, the thrifts may have improved enough to be off the list. Dime Savings, for instance, says problem loans are down this year. But HomeFed has not improved and is up for sale by regulators. That sale will likely add to taxpayers' bill for the S&L cleanup. (End of package.) Business Law Editors: Jason P. Smith and Kate Coughlin. (919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. 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