
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, November 23, 1994                   TAG: 9411230156
SECTION: BUSINESS                    PAGE: C8   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                 LENGTH: Short

NEW RULES ISSUED ON S&L STOCK SALES

Two agencies adopted regulations Tuesday aimed at preventing insiders from reaping windfall profits when depositor-owned savings institutions sell stock to the public.

The Office of Thrift Supervision issued a final rule, effective Jan. 1, on the conversion of savings and loan associations from mutual ownership to stock ownership.

The thrift office retreated from its interim rule requiring that local depositors be given preference in buying the stock of converting institutions. Now such a preference is an option when the stock is oversubscribed.

As before, the rules allow the thrift office to deny institutions permission to convert if they have a less-than-satisfactory record of lending to poor people and minorities.

The Federal Deposit Insurance Corp. issued its own version of the rules applying to savings banks. The FDIC's rule adds new protections on approving a conversion and on how the price of stock is set for the initial offering.

-Associated Press

Memo: longer version ran in the State edition

by CNB