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Struggling Standard Federal sues over loan-servicing deal
Fighting for its fiscal life, Standard Federal Savings Bank F.S.B. is suing a California thrift in a move to stem losses from a 1988 loan-servicing deal.
Standard Federal, Maryland's third largest thrift, could face up to $1.2 million in losses in the coming year unless a federal court nullifies its loan-service agreement with First Nationwide Bank F.S.B., attorneys said.
The Gaithersburg-based savings bank already has been forced to cover $729,000 in red ink from the deal. And thrift executives are concerned that further losses could erode the thrift's capital level, which is below federal …