Hartford Courant du lieu suivant : Hartford, Connecticut • Page 23

llarlfoffc glourant '3 -V SECTION SATURDAY JULY 13. 1991 CG RELIGION DaBtary SaMg Loan seized by government practices at the institution. The sources, who asked not to be identified, said the probe was focusing on loans to personal and business associates of Filous. At the same time, Ralph W. Grid-ley, OTS deputy regional director, said his agency would assess whether bank officials had acted improperly or borrowers had defrauded the bank.

If so, he said, civil judgments would be sought against them. "There'll be a variety of post mor-tems, and we will look at all the activities of the bank and its officers The three are the thrift's president iPeter Filous, and two executive vice presidents, who were removed by the federal i regulators. -Filous could not be reached for comment Friday. Robert Haley, an agent for the federal Resolution Trust which oversees federal takeovers of thrifts, said, "It was just determined that their services were not needed by the new institution." The seizure of the institution came as federal law enforcement sources said they are investigating lending mutual savings and loan association, which has seven branches, said it had $278 million in assets as of Marcfi 31. Regulators said that no depositors will lose money and that service will not be interrupted at the thrift," which has branches in Danbury, Newtown, Ridgef ield, New Fairfield and Southbury.

The Office of Thrift Supervision chartered a new institution, calling it Danbury Federal Savings and Loan. All but three of the 85 employees were rehired, at least temporarily. years, had a $13.6 million net loss in 1990 and a $1.66 million loss in the first quarter of 1991. In April, state and federal banking regulators issued a cease-and-desist order in which the thrift was required to review the effectiveness of. its management increase capital, raise loan loss reserves and improve lending practices, said Barbara McGrath, Connecticut's deputy banking commissioner.

As of March 31, the thrift reported Please see Federal, Page C2 and directors and borrowers, and a determination will be made whether we will go against persons associated with the institution," Gridley said. "Danbury's condition is due primarily to high operating expenses, a high level of nonperforming assets, poor loan underwriting, and a substantial concentration of commercial real estate and speculative construction loans originated in a weak real estate market," the OTS said in a statement The 71-year-old thrift, which has faced severe problems in recent By LAWRENCE STRAUSS and DAVID FINK Courant Staff Writers Plagued by heavy losses, millions in bad loans and eroding capital, an insolvent Danbury savings and loan association was taken over by the federal government Friday, the eighth financial institution to fail in Connecticut this year! Federal regulators seized Dan-bury Savings Loan at about noon Friday and said they plan to operate it until they can find a buyer. The Pricejs lales reports raise iioubts about vigor of recovery I -1 I I 4 If jLJP- to revive Marc Yves Regis The Hartford Courant ordered WHCT-TV liquidated to pay more than 1 1 million In debts of its owner, Astroline Communications Co. Ltd. WHCT-TV, Channel 18, broadcast from this building on Garden Street in Hartford until its shutdown in April.

A bankruptcy judge Associated Press WASHINGTON Government reports showing declines in producer prices and retail sales last month raised new concerns on Friday about the health of the economy. "It takes the exclamation mark away from the word 'recovery and replaces it with question mark," said Robert Brusca, an analyst with Nikko Securities )Coi International Inc. in New York I Retail sales dipped 0.2 percent and the prices paid by wholesalers were down a surprising 0.3 percent. Economists said the figures raise questions about the Federal Reserve's decision to hold interest rates steady, rather than lower them further to spur growth. "The Fed is going to be a little less smug about having engineered some kind of recovery," Brusca said.

The seasonally adjusted decrease in the Labor Department's Producer Price Index followed a large increase in May, a modest gain in April and declines in March and February. "If the economy, were stronger you'd see larger increases in the producer index," said economist Cynthia Latta of Data Resources a Lexington, forecasting firm. "Profits are under pressure. A lot of companies would like to raise prices, but they just can't get away with it" The Commerce Department's figures on retail sales, meanwhile, rep-resented the third decline this year and came despite a 1.1 percent advance in automobile sales. Overall sales had risen 0.8 percent in May and declined in April.

Percent change in producer price index, seasonally adjusted -10 ASONDJ FMAMJ SOURCE: Bureau of Labor Statistics 1.51 1 t--T Down 0.3 Channel 18 might be difficult Shurberg challenged the policy all the way to the U.S. Supreme Court. The high court in 1990 upheld the policy. Astroline got preference under the policy because its managing general partner, Richard Ramirez, is Hispanic. BSage Broadcasting of Stamford, which operates several radio stations.

A group headed by Lynette Ellerston. HA group headed by Gloria W. Stanford. Ellerston and Stanford have applied to the FCC to get the Channel 18 broadcast license. But an FCC official did not know where in Connecticut they were from and could not immediately By STEPHEN M.

WILLIAMS Courant Staff Writer WHCT-TV, Channel 18, is on the sales block in U.S. Bankruptcy Court, and at least four Connecticut groups are interested in its broadcast license. But industry experts say getting the now-defunct station back on the air will be difficult in a competitive television market where the recession has curbed advertising revenues. Also complicating matters are complex Federal Communications Commision licensing regulations, under which a buyer could get Channel 18's broadcast license but lose it less than a year later. Channel 18 went off the air in April, after U.S.

Bankruptcy Judge Robert L. Krechevsy in Hartford ordered it liquidated to pay off more than $11 million in debts of its owner, Astroline Communications Co. Ltd. Martin W. Hoffman, the court-appointed trustee overseeing the liquidation, said he has been in negotiations with several possible buyers but has received no firm offers.

Others have taken a separate route, applying directly to the FCC for the broadcast license. Among Connecticut groups interested in the Hartford station are: Shurberg Broadcasting of Hartford, which has been trying to acquire the station for eight years. After the FCC awarded the station to Astro-line under its "minority preference policy," Retail sales, which represent half of consumer spending, totaled $151.9 billion in June, down from $152.2 billion in May, according to the Commerce Department report And the 0.8 percent May advance was weaker than the 1.0 percent in the department's first estimate. "This has been a consumer-led recession, and the numbers do not suggest consumers are exuberant about buying," said economist Stephen S. Roach of Morgan Stanley Co.

"They're waiting to get some money in their pockets before buying and for many that's down the road." However, Treasury Secretary Nicholas F. Brady cautioned report-; ers against reading too much into a monthly fluctuation. "Conversations I've had with industrialists in this country indicate that June was a better month than May," Brady said. The economy, he said, "seems to have certainly bottomed out and is on its way up. I'm particularly pleased that the producer price figures indicate that inflation is at a much more controllable rate." Most economists had expected the producer index to show flat or'mod-estly increasing prices.

But both energy and food prices fell significantly in June. So-called core prices, excluding the volatile food and energy sectors, were unchanged after a two-year string of monthly increases. They are regarded as a good gauge of underlying inflationary pressure before it reaches the consumer level. Please see Price, Page C2 Retail sales Monthly change, adjusted for seasonal, trading day variation ASOND JFMAMJ SOURCE Census Bureau Knlght-Rldder Tribune News Citing Mutual Benefit's real estate losses, A.M. Best Co.

downgraded its rating from superior to excellent Monday. The company's ratings were downgraded in May by Standard Poor's and Moody's. In addition, the company an-nounced Monday that it will lay off 430 of more than 1,400 workers at its Newark headquarters. Mutual Benefit has 400,000 policyholders, including nearly 45,000 in New Jersey. It has more' than $14 billion in assets.

The company's total capital at the end of 1990 was $561 million, down from $576 million the previous year. Under the plan outlined by the state official, the board Of directors of Mutual Benefit would formally request the state to place the company into conservator- ship on Monday. The state would then appoint a conservator who would take control of company operations and answer to New Jersey Insurance Commissioner Samuel Fortunate The state action would not affect policyholders who are collecting on benefits, the official said. 1 Down 02 1 -2J 1 New York probes unpaid insurance discounts companies, including Travelers Corp. and Aetna Life Casualty have been approached as part of the investigation.

Although all of the companies have responded, Calagna would not say which appear to be violating the law. One company under investigation, State Farm Mutual Insurance, announced Friday that 2.5 million of its customers across the country would be getting refunds if their cars have air bags or automatic safety belts. State Farm learned through "internal audits" after a consumer' complaint that the refunds were not being given, said Dan Doran, compa New Jersey life insurer may seek state takeover counts for autos equipped with air bags, automatic safety belts, anti- lock brakes or anti-theft devices. The discounts average about $25 for the passive restraints and $50 for the anti-theft devices, Abrams said. So far New York is the only state investigating the insurers, Abrams' office said.

"Based on the information we have so far, a vast majority of New Yorkers who should have gotten these discounts are not getting them," said John Calagna, spokesman for the state Insurance Department. Seventeen of the largest insurance 30-ycarT-bsnds The rate on 30-year Treasury bonds was 8.43 percent as of 4:30 p.m. Friday. Please see Returning, Page C2 ny spokesman. The refunds, which will range from $10 to $15 for most customers, will cost the company $35 million, he said.

"Our customers don't need to do anything to get the refund," Doran said. "If they're entitled to a refund, it will be sent to them automatically." Another company, Travelers, said some customers who should have received discounts have not this year. Phyllis Benton, company spokeswoman, said she didn't know how many customers didn't receive Please see New York, Page C2 percent to 15 percent of Stanley stock. The filing meant that Newell could not move to buy any Stanley stock for 30 days. That waiting period lapsed Friday.

Stanley's principal spokesman Ronald F. Gilrain, said he did not know whether Newell had moved: Friday to acquire Stanley stock. "I'm not sure that I'd comment if I did," he said. William Allredge, Newell's desig- Please see Stanley, Page C2 Robert Weisman, whose column usually appears on Saturday, is on special assignment. Stanley Works stock price gains nearly $2 in 2 days Associated Press ALBANY, N.Y.

New York state is investigating the failure of some auto insurance companies to give required discounts to consumers who have safety and anti-theft devices on their cars, officials said Friday. Attorney General Robert Abrams said car owners have been cheated out of as much as $30 million in New York, and more nationally, by insurance companies that advertise discounts and then don't give them. New York, Calif ornia and several other states require insurance dis Today's data EDOW JONES AVERAGE (Friday's close) 30 Industrials 2,880.77 Up 21.02 W-BILLS 12-month 6.40 (average) 6-month 5.71 3-month 5.58 MORTGAGES (Average, based on local survey) Adjustable, 1 9.22 Fixed, 30 9.87 lnsld Pan Ant's last treasure A dying Pan Am tries to sell its last treasure: the airline's Latin American routes. Page C2. Saftey violations aliased A Groton aerospace firm is accused of 70 violations of federal job-safety rules.

Page C2. MM Associated Press TRENTON; N. J. The nation's 18th largest health and life insurer is expected to ask New Jersey officials Monday to take control of the financially troubled company, a source said Friday. Earlier Friday, Gov.

Jim Flo-rio hinted that a state takeover of the Mutual Benefit Life Insurance Co. of Newark was imminent 'y'-' Three rating companies have downgraded Mutual Benefit's rating a measure of the insurer's ability to pay claims. Analysts are worried about the company's real estate losses. "The purpose of the state moving on a company that is still solvent is to keep that company solvent" said the source, a state official who spoke on the condition of anonymity. Mary Ann Green, spokeswoman for Mutual Benefit did not return telephone requests for comment from The Associated Press on Friday.

Green told The Record of Kackensack on Thursday that a state takeover was not imminent and that the company is in strong financial shape. IN PERCENT 8.55 8.50 I 1 pis rn ill Hl r- The price of Stanley Works stock increased by nearly $2 a share over the past two days, and volume Friday surged to 131,200 shares more than the amount traded on Wednesday and Thursday combined. Stanley stock closed Friday up 87 cents, at $40.87, not far from the 52-week high of $41.50. The price was up Thursday by $1. The last time the company's stock fluctuated markedly was early last month, when it became known that Illinois-based Newell Co.

was seeking a substantial stake in Stanley stock a move that Stanley termed hostile and said was intended to force a merger. Newell competes with Stanley in several hardware and housewares product lines. Newell said in a report filed with federal authorities in mid-June that it was seeking to acquire from 1 28 1 2 3 5 8 9 10 11 12.