Exhibit 99.2




FOR:      FOG CUTTER CAPITAL GROUP INC.

CONTACT:  Fog Cutter Capital Group Inc.
          (503) 721-6500             Andrew A. Wiederhorn, Chairman and CEO
          (503) 721-6500             Lawrence A. Mendelsohn, President, or
          (503) 721-6500             R. Scott Stevenson, Chief Financial Officer


FOR IMMEDIATE RELEASE

      FOG CUTTER CAPITAL GROUP INC. ANNOUNCES CHANGES TO BOARD OF DIRECTORS

PORTLAND, Ore.--October 30, 2001- Fog Cutter Capital Group Inc. (Nasdaq: FCCG),
an opportunistic investment group specializing in mortgage and real estate
related assets, has announced the appointment of three new directors, Don H.
Coleman, David Dale-Johnson and K. Kenneth Kotler. The appointments were made
to expand the size of the Board and to fill vacancies created by the
resignation of director Pat Terrell and the earlier resignation of director
David Egelhoff. Both Mr. Egelhoff and Mr. Terrell had served as directors for
more than three years, and resigned for personal and business reasons.
Mr. Terrell and his family remain significant shareholders.

Fog Cutter Capital Group Inc. wishes to thank Messrs. Terrell and Egelhoff for
the years of service they have devoted to the Company. Their active board
participation and business experience helped Fog Cutter survive during a period
of difficult economic circumstances within its industry. The former directors
were instrumental in developing the Company's strategic plan, which was
unanimously approved and adopted by the Board earlier this year and which the
Board is now poised to implement. The Company wishes them well as they pursue
their other business interests.

The new directors will join Andrew Wiederhorn, Lawrence Mendelsohn and Jordan
Schnitzer on the Board.

Don H. Coleman is a partner and Vice President of International Communication
Technologies Inc. ("ICT Group"), which invests in private telephone service
provider companies in foreign countries. Mr. Coleman is also Chief Operating
Officer of Eagle Telephonic Inc. ("Eagle"), a designer and manufacturer of
telephonic switches. ICT Group is a significant investor in Eagle. Mr. Coleman
is also a director of Fabricated Metals, Inc. and has previously served as a
director of Aster Telesolutions, Inc., Wilshire Financial Services Group Inc.
and First Bank of Beverly Hills, FSB.

David Dale-Johnson is a professor and the Director of the Program in Real Estate
at the Marshall School of Business of the University of Southern California. Mr.
Dale-Johnson also currently serves as a director of LECG, Inc., a litigation
consulting firm, and is a



former director of Wilshire Financial Services Group Inc. and First Bank of
Beverly Hills.

K. Kenneth Kotler is an attorney, specializing in commercial debt collection
matters. He has been a sole practitioner since 1991. He has previously served as
a director of Girard Savings Bank, FSB and First Bank of Beverly Hills, FSB.


Fog Cutter Capital Group Inc. focuses on the acquisition of assets where its
expertise in intensive asset management, mortgage and real estate credit
analysis and financial structuring can create value. The Company invests
primarily in the following types of assets:

       o      mortgage-backed securities,

       o      mortgage loans,

       o      equity and debt of real estate companies, and

       o      other real estate-related investments.


FORWARD LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements so long as those statements are identified as
forward-looking and are accompanied by meaningful cautionary statements
identifying important factors that could cause actual results to differ
materially from those projected in such statements. All of the statements
contained in this release, which are not identified as historical, should be
considered forward-looking. In connection with certain forward-looking
statements contained in this release and those that may be made in the future by
or on behalf of the company which are identified as forward-looking, the company
notes that there are various factors that could cause actual results to differ
materially from those set forth in any such forward-looking statements. Such
factors include but are not limited to, the real estate market, the availability
of real estate assets at acceptable prices, the availability of financing,
interest rates, and European markets. Accordingly, there can be no assurance
that the forward-looking statements contained in this release will be realized
or that actual results will not be significantly higher or lower. The
forward-looking statements have not been audited by, examined by, or subjected
to agreed-upon procedures by independent accountants, and no third party has
independently verified or reviewed such statements. Readers of this release
should consider these facts in



evaluating the information contained herein. The inclusion of the
forward-looking statements contained in this release should not be regarded as a
representation by the company or any other person that the forward-looking
statements contained in this release will be achieved. In light of the
foregoing, readers of this release are cautioned not to place undue reliance on
the forward-looking statements contained herein.