SECURITIES AND EXCHANGE COMMISSION

                              WASHINGTON, D.C, 20549

                               ____________________


                                     FORM 8-K

                                  CURRENT REPORT
                      PURSUANT TO SECTION 13 OR 15(d) OF THE
                          SECURITIES EXCHANGE ACT OF 1934



   Date of Report (Date of earliest event reported):           January 21, 1994
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                          GREYHOUND FINANCIAL CORPORATION
              (Exact name of registrant as specified in its charter)



        DELAWARE                        1-7543                       94-1278569
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   (State or Other Jurisdiction       (Commission              (I.R.S. Employer
            Incorporation)            File Number)          Identification No.)



   DIAL TOWER, PHOENIX, ARIZONA                                           85077
   (Address of principal executive offices)                          (Zip Code)

   Registrant's telephone number, including area code:             602/207-6900
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   Item 5.   Other Events.


        Through  a Report  on  Form 8-K,  dated  January 5,  1993,  the Company
   previously reported  litigation titled  Cabana Limited Partnership,  a South
   Carolina Partnership v. Greyhound  Real Estate Finance Company, et  al., and
   related litigation (collectively,  the "Litigation").  On January  21, 1994,
   the  court in the above-named case granted  summary judgment in favor of the
   Company and the other defendants on all counts. On motion of defendants, the
   court dismissed  the  defendants' claims  without  prejudice.   The  parties
   subsequently entered  into a global settlement agreement  whereby all rights
   to  appeal have  been waived  by Plaintiffs.   The  terms of  the settlement
   agreement  are confidential  but involve  the payment  by the  defendants to
   plaintiffs'  counsel  of a  relatively nominal  amount, to  secure finality,
   which the Company  believes will  cover a portion  of plaintiffs'  counsels'
   Litigation costs and  expenses.  The summary  judgment in the  Company's and
   related defendant's favor remains unchanged.

        Greyhound  Real Estate Finance  Company was a  subsidiary of registrant
   Greyhound Financial Corporation.

                                    SIGNATURES


   Pursuant to the  requirements of the  Securities Exchange Act  of 1934,  the
   registrant  has duly caused this  report to be  signed on its  behalf by the
   undersigned thereunto duly authorized.


                          GREYHOUND FINANCIAL CORPORATION

                                   (Registrant)



   Dated:  January 25, 1994     By/s/  Bruno A. Marszowski
                                  ---------------------------------------------
                                Bruno A. Marszowski, Vice President-Controller
                                Principal Financial Officer/Authorized Officer