Banking Industry Maryland

The prominent Baltimore law firm of Venable, Baetjer & Howard agreed to pay the state of Maryland for its role in the 1985 near-collapse of the state's savings and loan industry. The state filed a $450-million suit against the law firm in July, charging that poor legal advice that the firm allegedly gave to the state's quasi-public thrift institution insurer plunged the savings and loan industry into a crisis. In agreeing to the settlement, Venable specifically denied any wrongdoing.

NationsBank Making $200 Million Investment in MNC: NationsBank Corp. said that in addition to the strategic investment in Baltimore Md.-based MNC Financial Inc., it has an option to buy the ailing Baltimore-based banking company outright during the next five years. The No. 4 ranked U.S. bank described the investment as a capital infusion that would help MNC combat financial difficulties posed by problem real estate loans.

A jury on Tuesday fined three former directors of First Maryland Savings & Loan $100 million each for mismanagement and fraud that helped cause the thrift's collapse in 1985. The award plus additional amounts bringing the total to $387 million culminated a 4 1/2-month civil trial in Montgomery County Circuit Court, and lawyers called the award the largest ever in Maryland.

A jury on Tuesday fined three former directors of First Maryland Savings & Loan $100 million each for mismanagement and fraud that helped cause the thrift's collapse in 1985. The award plus additional amounts bringing the total to $387 million culminated a 4 1/2-month civil trial in Montgomery County Circuit Court, and lawyers called the award the largest ever in Maryland.

NationsBank Making $200 Million Investment in MNC: NationsBank Corp. said that in addition to the strategic investment in Baltimore Md.-based MNC Financial Inc., it has an option to buy the ailing Baltimore-based banking company outright during the next five years. The No. 4 ranked U.S. bank described the investment as a capital infusion that would help MNC combat financial difficulties posed by problem real estate loans.

The prominent Baltimore law firm of Venable, Baetjer & Howard agreed to pay the state of Maryland for its role in the 1985 near-collapse of the state's savings and loan industry. The state filed a $450-million suit against the law firm in July, charging that poor legal advice that the firm allegedly gave to the state's quasi-public thrift institution insurer plunged the savings and loan industry into a crisis. In agreeing to the settlement, Venable specifically denied any wrongdoing.