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Article: Glendale Federal gets concession in case on supervisory goodwill. (Glendale Federal Bank)
- Article from:
- American Banker
- Article date:
- February 11, 1994
- Author:
CopyrightCOPYRIGHT 1994 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- Government lawyers on Thursday backed down from part of their defense against Glendale Federal Bank in a widely watched case on supervisory goodwill.
During oral arguments before a federal appeals court, government lawyers agreed for the first time that the California thrift had a contract with the government over the accounting treatment of supervisory goodwill when Glendale took over an insolvent Florida thrift in 1981.
A Possible Precedent
The case is important because regulators in the early 1980s allowed more than a hundred thrifts to count supervisory goodwill as capital, a practice that Congress barred in 1989. Dozens of ...