Another Bank Bites It: First Federal Of Santa Monica To Be Taken Over | The Informer | Los Angeles | Los Angeles News and Events | LA Weekly
Loading...
City News

Another Bank Bites It: First Federal Of Santa Monica To Be Taken Over

Comments (0)

By

Fri, Dec 18, 2009 at 5:48 PM

click to enlarge logo_firstfederal_ca.gif
The UCLA Anderson Forecast, the president and the stock market (on some days) say the recession is over, but banks keep going bust. The latest victim was Santa Monica-based First Federal Bank, which was closed Friday by the federal Office of Thrift Supervision.

Pasadena-based OneWest Bank announced that it would take over First Federal, however, and likely keep all branches open. In fact, it boasts, the acquisition will create one of Southern California's largest banks. "This transaction is consistent with our strategy to expand the OneWest footprint in our home market of Southern California," stated OneWest Bank's Chairman Steven Mnuchin

The Los Angeles Business Journal describes 80-year-old First Federal as "one of L.A.'s oldest and largest financial institutions," but reports that the bank, like most of the 139 others that failed in the nation this year, was weighed down with billions of dollars worth of bad home loans and "was the longest surviving lender of risky option adjustable-rate mortgage loans."

First Fed opened in 1929 and survived the Great Depression.

Related Content

Now Trending

  • Dorian Nakamoto Is Crowdfunding His Fight Over Newsweek's Bitcoin Article

    Almost as soon as it appeared, a March Newsweek article that called L.A's own Dorian "Satoshi" Nakamoto "The Face Behind Bitcoin," faced questions about its veracity. See also: Language Doesn't Point to L.A.'s Satoshi Nakamoto as Bitcoin Inventor Chief among the critics was Nakamoto, who said the piece was downright wrong:...
  • LAPD Moves to Fire Frank Lyga Following Racially Charged Remarks

    Controversial Los Angeles Police Department Det. Frank Lyga, whose racially charged comments to a police training class prompted his bosses to send him home with pay, was recommended for termination by the LAPD's Board of Rights this week, a police official said. The ball is now in the court of...
    5
  • DUI Checkpoints Come to Hollywood, Echo Park This Weekend

    Fall DUI checkpoints have returned to Los Angeles with a vengeance. With Halloween approaching, don't get spooked by that black-and-white in your rear-view. You better drive sober, or not at all, the Los Angeles Police Department warns. To that end, the LAPD wants you to know that its officers will...
Los Angeles Concert Tickets