Fed Examiners Sent to Audit Maryland S&L --- Community Savings' Ability To Repay Federal Loans Is Reviewed, Officials Say
WASHINGTON -- The Federal Reserve Board sent examiners to troubled Community Savings & Loan Association of Bethesda, Md., signaling greater problems than were first apparent, federal and state officials said.</br></br>The examiners were checking on the thrift's ability to repay loans from the Fed and stepping up the central bank's role in any rescue plan, regulators said.</br></br>The Fed has provided a "substantial amount" in loans to Community to meet its cash flow needs, a Reagan administration official said. Representatives of the Fed also have been meeting with Maryland officials and others attempting to put together a rescue plan for the thrift and its real estate syndicating unit, Equity Programs Investment Corp., the official said. Earlier this month, Equity Programs missed payments on about $1.4 billion of mortgage-backed securities.</br></br>"The Fed is very involved," the official said. "It's been putting cash into this place, and now fears it will lose its money. It sent its auditors in to see what assets it can claim."</br></br>Separately, trustees for the mortgage-backed securities issued through Equity Programs asked a federal court in Alexandria, Va., to appoint a receiver for the Equity Programs subsidiary responsible for making payments on the obligations.