Savings And Loans: Soft Landing for a High Flyer

When Charles Knapp bailed out last month as chairman of struggling Financial Corp. of America, a soft landing seemed likely. Last week it was learned that Knapp, whose high-risk growth strategy for the California-based savings and loan left the thrift holding too many unprofitable fixed-rate loans, had managed to secure a golden parachute from Financial Corp.'s board of directors in the form of a severance payment worth $2 million.

Federal regulators, who have been forced to pump loans worth more than $2 billion into F.C.A. since July to offset withdrawals by jittery...

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