Federal Authorities Seize Newport Beach-Based Downey Savings and Loan

Downey Savings and Loan finally drew it’s last, painful breath, then released it in a sigh of utter relief as one of the longest, most painful bank insolvencies to date.

The body has been claimed by US Bank, which means if they don’t get killed by the same disease Downey did, they may end up owning as many homes in SoCal as people in SoCal do.

I think that US Bank is assuming we will all pull out of this economic tailspin soon, but it’s a still a hell of a long ways down, and the new pilot is just another Goldman Sachs – Council on Foreign Relations – IMF guy, and those are the guys that got us into this in the first place.

This from the OC Register, which has had to watch the Downey death throes up close for too long:

“Federal authorities seized Newport Beach-based Downey Savings and Loan as the thrift fell below capital requirements to stay in business, authorities said late Friday.”

“The Federal Deposit Insurance Corp. announced it was turning over management of the 51-year-old thrift to Minneapolis-based U.S. Bank. As part of the same action, the FDIC also turned over Pomona-based PFF Bank & Trust to U.S. Bank.”

“Depositors will automatically become depositors of U.S. Bank. Deposits will continue to be insured by the FDIC, so there is no need for customers to change their banking relationship to retain their deposit insurance coverage,” the announcement said.”

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One Response to “Federal Authorities Seize Newport Beach-Based Downey Savings and Loan”

  1. Eric Ogunbase Says:

    You know, I closed an account at Downey Savings this year, and then found out they’d reported me to ChexSystems for some 9 dollar fee I was never notified of. I wonder if now would be the time to dispute that fee…

    I wish all these banks would fail. I mean, if we (as individuals) spend more money than we make, we financially fail.

    I’m glad they failed. Only one bank has drawn more of my ire than Downey, and that is B of A.

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