FirstFed Financial Corp., the Los Angeles savings and loan holding company whose operations were closed last month by bank regulators, has filed for Chapter 11 bankruptcy protection.
The former parent of First Federal Bank of California listed assets of $4.47 million and liabilities of nearly $160 million in its filing this week in U.S. Bankruptcy Court in Woodland Hills. FirstFed racked up losses over the past two years as plunging home prices resulted in adjustable-rate mortgages resetting at higher rates than borrowers could afford.
The Federal Deposit Insurance Corp. on Dec. 18 announced that First Federal’s 39 branches and their deposits were being acquired by OneWest Bank FSB, the Pasadena bank created from the assets of failed IndyMac Bancorp. First Federal had about $6.1 billion in assets and $4.5 billion in deposits as of Sept. 30.
The 80-year-old FirstFed was one of Los Angeles County’s oldest banks and the sixth largest depository institution in the county.
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