La Jolla Bank Customers Puzzled About Takeover
PALM DESERT – The bank formerly known as La Jolla Bank opened its doors early Monday morning to accommodate the stream of panicked customers.
“This is a shock to hear this,” says Charlene C., of Palm Springs. “We’re long time desert residents, and we’re very surprised.”
On Friday the FDICannounced OneWest Bank was taking over La Jolla Bank. La Jolla customers would automatically becomeOneWest customers.
It sounds like a seamless transition so far, but some customers are still feeling leery about the deal.
“Will they [OneWest] be able to take on all the added burdens and not get into trouble themselves?” asked Sue Duffy.
FDIC explained several factors in La Jolla Bank’scollapse: poor credit administration practices; significant losses to the bank’s loan portfolios; weak real estate market; and alleged fraudulent activities.
According toOneWest’s Web site, the financialinstitutionhas approximately $27 billion total assets and $14 billion in deposits. According to the FDIC, La Jolla had $3.6 billion in total assets and $2.8 in deposits, as of December 31,2009.
Ken Dorf arrived to the branch with little worries. He says this is the third collapsed bank he’s had to deal with in his life.
“Washington Mutual, we have money in. We have money in Guaranty Bank. We have money in here. All three have gone. So, what’s unusual?”
Several La Jolla Bank customers tell News Channel 3 the bank managers assured them their money was safe–and so are the bank workers’ jobs.
