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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Maxxam May Face Charges In S&L; Case

From Staff And Wire Reports

A Texas company whose predecessor and chairman were part owners of the failed United Savings of Texas may face charges for its part in the thrift’s demise.

Maxxam Inc., a Houston-based aluminum, forest products and real estate company, was notified by the Office of Thrift Supervision on Nov. 1 that the agency plans to issue a “notice of charges and hearings” within 30 days.

The OTS said it may claim Maxxam had a duty to maintain the net worth of United Savings, whose failure cost taxpayers about $1.6 billion.

The agency also claimed Maxxam is liable for the possible unsound practices of others at the savings and loan.

Maxxam denied the charges. Spokesman Bob Irelan said, “It is our contention we did not have the duty” to maintain the net worth of United, “being a shareholder but not having controlling interest.”