BANKING & FINANCE - July 24, 1991

B of A Negotiating for Hawaii Thrift: Banking sources said they expect the San Francisco bank to buy the Honolulu-based Honfed, owned by a partnership that includes former Treasury Secretary William E. Simon and Los Angeles lawyer Gerald Parsky. Honfed, considered a profitable and well-capitalized institution, has confirmed that it is in discussions with an unnamed suitor, but said no deal has been struck. Sources in Hawaii said they expect a deal for up to $200 million, which would give the Simon and Parsky group a hefty profit. Simon and Parsky own two thrifts in the Los Angeles area, Southern California Savings and Western Federal Savings, that are both low on capital and not faring as well as Honfed.