After the 80-year-old Los Angeles savings and loan holding company was closed last month by bank regulators, the parent company of FirstFed Financial Corp. has filed for Chapter 11 bankruptcy.
In its bankruptcy filing, the former parent of First Federal Bank of California listed assets of $4.47 million and liabilities of almost $160 million.
As home prices in the Los Angeles area began to plummet over the last two years, mostly due to adjustable rate mortgages resetting, FirstFed started accumulating losses.
In December, the Federal Deposit Insurance Corp. (FDIC) announced that 39 of FirstFed’s branches and their deposits would be acquired by OneWest Bank FSB, a Pasadena bank that was created from the remaining assets of the now-closed IndyMac Bancorp.
FirstFed was one of Los Angeles’ longest standing banks, and at one point was the sixth largest depository institution in the country. In fact, just as recently as the end of September the company had billions in assets and deposits.
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