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Monday, January 26, 2009

First Fed: Layoffs, Cease and Desist Order

by Calculated Risk on 1/26/2009 07:20:00 PM

From First Fed: FirstFed Financial Corp. Announces Workforce Reductions and Issuance of Cease and Desist Orders by the Office of Thrift Supervision

FirstFed Financial Corp. announced today a reduction in the staff of its wholly-owned banking subsidiary, First Federal Bank of California ... by 62 persons, or approximately 10% of the Bank's current workforce. ...

The Company also announced today that the Company and the Bank have each consented to the issuance of an Order to Cease and Desist (the "Company Order" and the "Bank Order," respectively, and together, the "Orders") by the Office of Thrift Supervision (the "OTS"). The Company Order requires that the Company notify, or in certain cases receive the permission of, the OTS prior to, among other things, declaring, making or paying any dividends or other capital distributions on its capital stock; incurring, issuing, renewing, repurchasing or rolling over any debt; increasing any current lines of credit or guaranteeing the debt of any entity; or making payments of any kind on any existing debt, including interest payments. The Company Order also requires that the Company submit to the OTS within fifteen days a detailed capital plan to address how the Bank will remain "well capitalized" at each quarter-end through December 31, 2011.
First Fed also announced they were closing their wholesale lending today via this email:

First Fed Click on graph for larger image in new window.

Email addresses removed.

NOTE the subject line ... they obviously rushed this email out today.