City Federal is the second-largest lender taken over, behind Gibraltar Savings of Los Angeles.

As of March 31, Gibraltar Savings had regulatory capital of $326.4 million and assets of $12.1 billion.

Most of the money came from Gibraltar Savings, a large Texas savings institution.

Gibraltar Savings and a sister institution, First Texas Savings, were declared insolvent by the Government in 1988.

The regulators, who are operating Gibraltar Savings under a conservatorship, prevented the parent company from receiving the money in May.

Securities held by Gibraltar Savings will be sold by the Government-appointed managers of the California institution.

Gibraltar Savings and Loan Association was a bank operating in California, Washington, and Florida.

Gibraltar Savings in Washington has assets of $1.7 billion.

She said Gibraltar Savings of California was the largest institution ever to be placed in a conservatorship directly under the management of Federal officials.

Most of the financing for Stonebridge, between $300 million and $330 million from 1983 to 1988, was advanced by Gibraltar Savings.