RTC Sues Directors of Arizona Bank: The...

RTC Sues Directors of Arizona Bank: The Resolution Trust Corp. said it has asked a federal district court in Arizona to order 20 former directors and officers of MeraBank Federal Savings Bank of Phoenix to repay damages of more than $270 million. RTC, the agency established by Congress to managed failed savings and loans, charged in a complaint that the defendants were grossly negligent and breached their employment agreements and fiduciary duties. MeraBank, a subsidiary of Pinnacle West Capital Group, failed in January, 1990, and its assets were sold off by the RTC in October at an ultimate cost to taxpayers of about $1 billion.