The Federal Home Loan Bank Board yesterday denied the request of oil billionaire Gordon Getty to reverse the agency's decision to sell ailing National Permanent Bank to Citicorp.
Getty's lawyers said they will file suit today to stop Citicorp from taking over National Permanent, the District's second-largest thrift.
Getty also will ask the U.S. Court of Appeals for the District of Columbia to require the bank board to accept another bid for National Permanent.
Citicorp and Getty were rival bidders for National Permanent. The bank board, which regulates the thrift industry, put National Permanent up for sale in January to try to restore the sick institution's financial health.
Last week, the bank board chose Citicorp, the nation's largest bank company, to take over the thrift, which has $1.1 billion in assets, but also has a deficit of $80 million. Citicorp had lobbied hard for 18 months to get into the District through the acquisition of a financial institution. The bank board agreed to pay Citicorp $51.8 million in return for the banking giant's taking the ailing thrift off the government's hands.
A few days later, Getty asked the board to reverse its decision, saying that he could make a competitive offer that, under the board's bidding rules, the agency would be required to accept.
Although the bank board made its decision last week, Citicorp cannot officially take over National Permanent until the Federal Reserve Board approves the deal, which would not occur before mid-July.