Hawaii Insurance

William E. Simon, 59 years in its control and tumble of the harsh world of James Bond trading houses, which served as treasury and als”Energie”Zar Secretary, led the USA Olympic committees and got a reputation as one of the investors During Wall Street.

William E. Simon, 59 years in its control and tumble of the harsh world of James Bond trading houses, which served as treasury and als”Energie”Zar Secretary, led the USA Olympic committees and got a reputation as one of the investors During Wall Street.

The project, which focuses now may be equally difficult. Mr. Simon and a group contains a number of high-powered partners, began setting up an international financing services and investment conglomerate based on a chain savings and loan associations and the spread of other areas.

The vision of this empire was inspired by Mr. Simon’s faith in the Pacific Rim, as an engine of economic growth in the 21st century. The move in four areas

A year and a half in the Venture, Mr. Simon has opened doors sufficiently attracted enough talent management, the project credibility and remarkable dynamism. Already in the group has signed, as members of these Preston Martin, former vice-chairman of the Federal Reserve Board, has developed close relations with foreign investors, and earned a toehold in real estate, commercial banks , Venture capital and Merchant Banking.

”We are gathering steam,’’said Simon in a telephone interview last week in Indianapolis, where he is the Pan American Games.

The group has so far focused on what some in the Financial Community, a tactic dangerous and difficult fishing on values in the waters of the troubled savings and loan industry. The only parts of the Pacific Rim has been affected so far, California and Hawaii.

Mr. Simon is betting that his group may be profitable to save companies from cups of insolvent savings institutions, on the west coast and throughout the nation, and to acquire healthy bodies. It would be a basis for building an empire.

Although the group has made some initial successes, a turning point for combat savings and loan association, the record is far from exhaustive. Indeed, some analysts, success is not the attribute of the infusion of talent from the music group, but on the ability of the group to get interested particularly well from the Confederation of regulatory authorities do not sell, savings and credit institutions. A secret of success

The acquisition of the strategy is simple, at least in theory, if the goal is a healthy body or need an additional capital: deep, with a value of the potential target of real estate assets and loan portfolio, and to impose sophisticated financial management in which are recorded. Where the device is not attractive to acquire, only the best real estate establishments.

”I think that prices there in S. & L. World, Sir,’’said Simon. ”If ever an industry, the capital, it is this, and we can provide capital.”

Thrift leaders welcomed the new competitors for its ability to help troubled institutions on board, as well as for its competence and optimism amid the gloom. ”You have all the ingredients for success,’’said William D. Nichol, Chief Financial Officer of Federal Home Loan Savings and San Diego.

The Group already holds three of savings institutions. One, Southern California savings, lost $ 1 million per month, it was purchased before, another Federal Republic of savings Honolulu, Hawaii more than $ 1.8 billion in assets, has fought. The third, West Coast savings from Beverly Hills, has been largely on the principles and now has assets of $ 100 million. An offer for F.C.A. The group of more daring, currently offer a bid for the tottering Financial Corporation of America, parent company of the nation’s largest rigour, ad acta, while the Federal Home Loan Bank Board decides how to deal with problems of TCF.

”We want a big presence on savings institutions in major markets across the country,’’said Martin, currently saving units for the group.

At one time, the Confederation of market regulators to fight for the loss of industry in the economy under control, Simon-working group has a value of raw materials - to provide new capital. But some industry leaders wondering whether the government is not too far to give in relations with the group. For example, they call the $ 217 million capital that the Federal Savings and Loan Insurance Corporation agreed, Southern California savings as part of that quantity. The Simon Group $ 40 million of his own money in the institution. 2 views of the Gruppe”Die positive in the industry is that the value of an eye,’’said Jonathan E. Gray, an industrial economy, an analyst at Sanford C. Bernstein & Company. The cynique”estime they can not wait, the more the government.”

Said L. Gerald Parsky, a former assistant Treasury Secretary Mr. Simon in mid-1970 and now its main partner in the new ventures,”The fact is that we have put $ 100 million to the industry.”

In Honolulu Confederation, the group has not received any financial assistance. The unit savings has been profitable for several years and, as problem loans increased stock of the situation has been eliminated. Mr. Simon and its partners, the institution has acquired late last year in return for an injection of $ 17 million of their own money and the organization of a private placement of $ 40 million in subordinated bonds increased by writing and $ 100 million of bad assets. Although some observers, it has a price, since real estate values, remained stable.

Companies in real estate loans of nature, have difficulties in the Federal Republic of Honolulu has been reduced, “said Martin, and operating expenses were balanced by the closure of certain locations and times of travel for others. A team of financial M. Martin to level the holding company - including John Harding, a former official of the Republic Federal National Mortgage Association, and Terry Crowe, ex-Asset Liability specialist at Kidder, Peabody & Company - was awarded to the institution to monitor the work Investments.

Accordingly, Honolulu Federal earned $ 11.6 million over the first half of the year, Mr. Martin said, as far as he had expected to win for the whole year. The group hopes over the same in Southern California, acquired earlier this year. Not in search of “Quick Buck ‘

Finally, Mr. Simon said that some institutions may transfer of shares to the public. ”But it would not be Bill Simon’s profits,”he said. ”We would be for him to return to the institution.”

As it has not been the case in the past, as Simon handles Leveraged Buy-Out and IPO Gibson Greetings Inc., the last category appears to be for long-term investment. ”We are not in it for the speed of Buck, Sir,’’said Simon.

While financial institutions have most of the attention and capital of the group, it starts to move in other areas.

With next month, it has invested nearly $ 50 million in many manufacturing and housing projects and one-Venture Capital Fund will soon start with a first group of $ 100 million.

In commercial banks, the group has 7 million, 60 per cent participation in the World Trade Bancorp of Los Angeles and $ 10 million, 28 per cent participation in the parent company of First Interstate Bank of Hawaii.