2010-18818. Determination of Insufficient Assets To Satisfy Claims Against Financial Institution in Receivership

AGENCY:

Federal Deposit Insurance Corporation (FDIC).

ACTION:

Notice.

SUMMARY:

The FDIC has determined that insufficient assets exist in the receivership of Downey Savings and Loan Association, F.A., Newport Beach, California, to make any distribution to general unsecured claims, and therefore such claims will recover nothing and have no value.

DATES:

The FDIC made its determination on July 26, 2010.

FOR FURTHER INFORMATION CONTACT:

If you have questions regarding this notice, you may contact an FDIC Claims Agent at [phone]. Written correspondence may also be mailed to FDIC as Receiver of Downey Savings and Loan Association, F.A., Attention: Claims Agent, 1601 Bryan Street, Dallas, Texas 75201.

SUPPLEMENTARY INFORMATION:

On November 21, 2008, Downey Savings and Loan Association, F.A., Newport Beach, California (FIN #10023), was closed by the Office of Thrift Supervision and the Federal Deposit Insurance Corporation (“FDIC”) was appointed as its Receiver. In complying with its statutory duty to resolve the institution in the method that is least costly to the deposit insurance fund, see 12 U.S.C. 1823(c)(4), the FDIC facilitated a transaction with U.S. Bank, National Association, Minneapolis, Minnesota, to acquire the deposits and most of the assets of the failed institution. Section 11(d)(11)(A) of the Federal Deposit Insurance Act, 12 U.S.C. 1821(d)(11)(A), sets forth the order of priority for distribution of amounts realized from the liquidation or other resolution of an insured depository institution to pay claims. Under the statutory order of priority, administrative expenses and deposit liabilities must be paid in full before any distribution may be made to general unsecured creditors or any lower priority claims. The FDIC has determined that the assets of Downey Savings and Loan, F.A. are insufficient to make any distribution on general unsecured claims and therefore such claims, asserted or unasserted, will recover nothing and have no value.

Dated: July 27, 2010.

Federal Deposit Insurance Corporation.

Robert E. Feldman,

Executive Secretary.