Troubled Huntington Beach-based Mercury Savings and Loan Assn., hit last month with severe operating restrictions, said today it has cut its staff by 10%, laying off about 70 people.
Mercury, which lost $13.8 million in 1988 and $5.4 million in the first nine months of last year, said most of the staff cuts were in lending operations. Federal regulators on Jan. 19 ordered the firm to halt all lending and investment activities.
The thrift said the cuts also included staffers from other areas and several executives, including Ronald Hansen, its chief financial officer since 1983.
The thrift does not meet any of the capital requirements that went into effect for thrifts in December. It became technically insolvent last month with a net negative equity of slightly less than $100,000 when it devalued $60.7 million in loans outstanding to the owners of the Irvine Marriott and Tulsa Marriott hotels.