And Phil Gramm still thinks he is right. Nope, nothing wrong with his economic theories or actions at all. Just a stab in the dark here but I'm willing to gamble and say that even if this recession turns out to be the worst since the Great Depression, he still won't admit failure. AP:
Federal regulators on Friday shut down two big thrifts based in Southern California, saying they fell victim to the acute distress in the housing market in that state.
The failures 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.
Also Friday, Georgia regulators shut down The Community Bank, a small bank in Loganville, Ga. The FDIC was made receiver of the bank, which had $681 million in assets and $611.4 million in deposits as of Oct. 17. The FDIC said all the bank's deposits and about $84.4 million of its assets will be acquired by Bank of Essex, of Tappahannock, Va. Its four branches will reopen Monday as offices of Bank of Essex.
The Office of Thrift Supervision, the federal regulator for the two California thrifts, said they both suffered mounting losses since last year. Downey's business focused on nontraditional, high-risk home mortgages such as payment-option and adjustable-rate loans.
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