Losses at privately run saving and loans more than doubled in the July-September quarter to $631 million, the government said today.
Timothy Ryan, director of the Office of Thrift Supervision, blamed the decline on the real estate slump afflicting both single-family homes and commercial projects.
S&Ls set aside $2.16 billion for sour real estate loans, up by $253 million from the previous quarter.
Third-quarter losses compared with a second-quarter loss of $302 million and a first-quarter loss of $373 million. The deterioration occurred even though the government has been closing down the worst institutions. At the end of September, there were 2,389 privately run S&Ls, 208 fewer than at the start of the year.