SECURITIES AND EXCHANGE COMMISSION
                             Washington, DC  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)
                                    May 7, 1996




                          DAMEN FINANCIAL CORPORATION
- -------------------------------------------------------------------------------
              (Exact name of Registrant as specified in its
Charter)



                                                        
         Delaware                 0-26574                 
36-4029638  
- -------------------------------------------------------------------------------
      (State or other        (Commission File No.)         (IRS
Employer
      jurisdiction of                                    
Identification
      incorporation)                                         
Number)




   200 West Higgins Road, Schaumburg, Illinois                 
60195   
- -------------------------------------------------------------------------------
     (Address of principal executive offices)                
(Zip Code)



Registrant's telephone number, including area code:   (708)
882-5320
                                                    
- ------------------


                                        N/A
- -------------------------------------------------------------------------------
        (Former name or former address, if changed since last
report)



Item 5.   Other Events
          ------------

      On May 7, 1996, the Registrant issued the attached press
release
announcing its intent to file a private letter ruling request
with the IRS for
a partial return of capital to shareholders.

Item 7.   Financial Statements and Exhibits
          ---------------------------------

          (a)   Exhibits

                99  Press release, dated May 7, 1996.



                                    SIGNATURE

      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.

                                        DAMEN FINANCIAL
CORPORATION




Date:    May 8, 1996               By:  /s/ Gerald R. Gartner     
         
       ----------------               
- ----------------------------------------
                                       Gerald R. Gartner,
Treasurer, Chief      
                                       Financial Officer
(Principal
                                       Financial and Accounting
Officer)



                                  Index to Exhibits



                                                                 
Sequentially  
                                                                 
Numbered Page 
                                                                
Where Attached
Exhibit                                                           
 Exhibits    
Number                                                           
are Located 
- -------                                                         
- --------------

                                                          

  99                 Press Release dated May 7, 1996              
    5