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Savings Bank in Seal Beach Goes Under

Home Savings of America has been nationalized, which could leave clients with accounts exceeding $250,000 in the lurch.

A small savings bank based in Minnesota with a branch in Seal Beach was seized by a federal government insurance fund at a cost of of $38.8 million, officials said this weekend.

was nationalized and closed when no other bank would purchase its assets and liabilities, according to the Federal Deposit Insurance Corp. This takeover was the first time in 13 months that a bank was liquidated without another bank stepping up to take over its accounts, according to the Orange County Register.

All account holders with less than $250,000 in an individual account will get a full payout from the FDIC. Anyone with more than that amount was asked to contact the FDIC.

Home Savings of America was based in Little Falls, Minn. and had one other branch in the Midwest. Its other two branches were in Laguna Woods and Seal Beach. Home Savings was no relation to the California savings and loan behemoth of earlier decades, which was a major player in Southland home finance.

TELL US WHAT YOU THINK IN THE COMMENTS

Are you affected by this news? Did your bank give adequate warning that something was wrong?

- City News Service

Chris February 26, 2012 at 03:26 PM
I urge you to read fdic website for a better understanding of the limits of coverage ($250,000) and how that amount can or cannot be spread across multiple accts. Read it for yourself...do not trust a poster`s interpretation. Remember - no one cares more about your money than you do...

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