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.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- FirstFed Fails; Among L.A.’s Oldest and Biggest Lenders
- Fremont Files For Chapter 11 Protection
- Fremont to Sell Banking Business
- Local Firm Chips In for Denver Savings and Loan
- OneWest Buys Another Failed Bank
- U.S., China Team Up Over Troubled Institutions
- FDIC Asks Court to Stop Concerto Condo Sales
- FirstFed’s Fault Lines