22nd US Bank fails

WASHINGTON (AP) — Federal regulators have shut down two big thrifts based in California, saying they fell victim to the acute distress in the housing market in that state.

The failures Friday of Downey Savings and Loan Association, based in Newport Beach, and PFF Bank & Trust of Pomona brought the number of U.S. bank failures this year to 22.

The Federal Deposit Insurance Corp. was appointed receiver of the two thrifts. U.S. Bank, based in Minneapolis, acquired all the deposits of both.

Downey, the 23rd-largest U.S. savings and loan, had assets of $12.8 billion and deposits of $9.7 billion as of Sept. 30. PFF, the 38th-largest, had assets of $3.7 billion and $2.4 billion in deposits.

Courtesy: Dailymirror

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