FDIC APPROVES ASSUMPTION OF INSURED DEPOSITS OF LOS ANGELES THRIFT AND LOAN COMPANY, LOS ANGELES, CALIFORNIA
FOR IMMEDIATE RELEASE
Andrew Porterfield (714) 442-1131
The Board of Directors of the Federal Deposit Insurance
Corporation has approved the assumption of insured deposits of Los
Angeles Thrift and Loan Company, Los Angeles, California, by
California Federal Bank, FSB, Los Angeles, California. Los Angeles
Thrift and Loan, with total assets of $24.9 million, was closed by
Gregory S. Mendoza, State Commissioner of Corporations, on Friday,
March 31, 1995, and the FDIC was named receiver.
The failed bank's sole office will not reopen, but customers
can access their accounts at California Federal's Mount Vernon
office at 270 N. Vermont Ave., Los Angeles, beginning Monday, April
3. The failed bank's depositors will automatically become
depositors of the assuming bank.
California Federal will assume about $21.9 million in 451
deposit accounts. At the time the bank failed, about $821,000 in
11 accounts exceeded the federal insurance limit of $100,000, and
will not be assumed by California Federal.
The FDIC Board of Directors also voted to make a prompt
advance payment to uninsured depositors equal to 50 percent of
uninsured claims following the determination of the uninsured
status of each claim. Customers with questions can call an FDIC
staff member at (213) 936-0936 beginning Monday, April 3, to arrange payment.
The assuming bank will pay a premium of $67,000 for the right
to receive the failed bank's deposits and will purchase $3.9
million in cash and cash deposits at other banks.
The FDIC notes that its claim on recoveries from the sale of
the failed bank's assets will have priority over non-depositor
creditors of the failed bank.