WASHINGTON - The Washington Metropolitan Area Transit Authority and a Belgian bank failed to reach an agreement yesterday that would unwind a leaseback deal in exchange for a $17 million payment from the transit agency, but the parties will return to federal court for a third day this morning to continue negotiations.

Judge Rosemary M. Collyer of the U.S. District Court for the District of Columbia had pushed the parties to consider a compromise Wednesday. That came at the end of a hearing in which WMATA sought an injunction to stop KBC Bank NV of Belgium's demand for a $43 million termination payment on the deal, which was in technical default after its guarantor, American International Group Inc., lost its triple-A ratings. While no agreement was reached yesterday, talks will continue at 11 a.m. today.

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