Friday, November 21, 2008

Downey Savings Finally Fails

Downey Savings and Loan, an infamous California risky loan provider, has finally been taken over by the FDIC.

On November 21, 2008, the banking operations of Downey Savings and Loan Association, F.A. - Newport Beach, CA was sold in a transaction facilitated by the Office of Thrift Supervision (OTS) and the Federal Deposit Insurance Corporation (FDIC). 

The FDIC has assembled useful information regarding your relationship with this institution.  Besides a checking account, you may have Certificates of Deposit, a car loan, a business checking account, a commercial loan, a Social Security direct deposit, and other relationships with the institution.  The FDIC has compiled the following information which should answer many of your questions.

…All deposit accounts and all loans have been transferred to U.S. Bank, National Association, Cincinnati, OH.  All former Downey Savings banks will reopen for normal business hours as branches of U.S. Bank.

Your transferred deposits will be separately insured from any accounts you may already have at U.S. Bank for six months after the sale of Downey Savings. Checks that were drawn on Downey Savings that did not clear before the institution closed will be honored as long as there are sufficient funds in the account.  You may speak to an FDIC representative regarding this transaction by calling the FDIC Call Center.  EDIE the Estimator can calculate your FDIC insurance coverage for each FDIC-insured bank where you have deposit accounts. EDIE lets you know in a printable report for each bank whether your deposits are within or exceed coverage limits.