Question and Answer Guide
Downey Savings and Loan Association, F.A., Newport Beach, CA
FDIC Call Center
Hours of Operation - Pacific Time
Friday, November 21, 2008: Until 9:00 p.m.
Saturday, November 22, 2008: 8:00 a.m. - 6:00 p.m.
Sunday, November 23, 2008: Noon - 6:00 p.m.
Thereafter: 8:00 a.m. - 8:00 p.m.
- Account(s)What about my account(s) with Downey Savings?
- ATM/debit card and/or Billpay What about my ATM/debit and/or Billpay with Downey Savings?
- Brokered Deposits I am a deposit broker or have brokered deposits. What do I do?
- Direct Deposits - Government Deposits Will my direct deposits continue?
- Existing Deposits at U.S. Bank I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?
- Interest Rates, Early Withdrawal Penalty Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
- Loans/mortgages What about my loan or mortgage with Downey Savings?
- Loans in Process What if I had a loan in process that had not closed or a line of credit not fully funded?
- Media I represent a media outlet and would like some information.
- Outstanding Checks What about checks that have not yet cleared my account?
- Safe Deposit Boxes How can I claim the contents of my safe deposit box?
- Shareholders What about my shares of stocks, notes or subordinated notes that I own in Downey Savings?
- Transaction Types Why do all deposits, insured or not, pass in some transactions but not in others?
1. What about my account(s) with Downey Savings?
All deposit accounts, which include Checking, Savings, Money Market, CDs and Retirements accounts have been transferred to U.S. Bank National Association, Cincinnati, OH, regardless of the dollar amount. No one lost any money on deposit in Downey Savings.
If you had an account with Downey Savings, you now have an account with U.S.
Please be advised you will not receive any email notification to claim/unlock/unsuspend your account or to provide any private information. Please be aware of any scams to obtain information from you.
2. What about my ATM/debit card and/or bill paying with Downey Savings?
Your ATM/debit card will continue to work, and bill paying will work as it has in the past.
3. I am a deposit broker or have brokered deposits. What do I do?
As an All-Deposit Transfer transaction, the total of all deposit accounts, including brokered deposits, have been assumed by U.S. Bank.
4. Will my direct deposits continue?
Direct Deposits will continue as normal, including Social Security checks.
5. I already have other deposit accounts with the new bank. When combined with balances at this bank, my deposits exceed $250,000. Are all funds insured?
The accounts transferred to U.S. Bank will be separately insured for
at least six months after the merger. This grace period gives a depositor
the opportunity to restructure the accounts, if necessary.
CDs from the failed bank are separately insured until the earliest maturity date after the end of the six-month grace period.
CDs that mature during the six-month period and are renewed for the same term and in the same dollar amount (either with or without accrued interest) continue to be separately insured until the first maturity date after the six-month period.
If a CD matures during the six-month grace period and is renewed on any other basis, it would be separately insured only until the end of the six-month grace period.
6. Will I continue to earn interest at the same rate? Will I be charged an early withdrawal penalty?
U.S. Bank will be honoring all existing CD rates.
You may withdraw funds from any transferred account without an early withdrawal penalty until you enter into a new deposit agreement with your new bank. Entering into a new deposit agreement can be done by either renewing your CD or making a deposit to, or a withdrawal from, your account.
7. What about my loan or mortgage with Downey Savings?
All mortgages and loans have been assumed by U.S. Bank. Your payment amount and due date are the same. If you are having your payment deducted from your account, it will continue as it has in the past. You should continue to make your checks payable to Downey Savings and send your payments to the same address.
8. What happens if I had a loan in process that had not closed or a line of credit not fully funded?
You should contact your loan officer. All prior contacts remain the same.
9. I represent a TV/Newspaper/Radio and would like some information.
10. What about checks that have not yet cleared my account?
Your checks will clear up to the available balance in your account. You can continue to use your existing checks.
11. How can I claim the contents of my safe deposit box?
It is business as usual. You can go to your local branch and access your safe deposit box; however, no action on your part is required because of this transaction.
12. What about my shares of stock, notes or subordinated notes that I own in Downey Savings?
On November 21, 2008, Downey Savings and Loan Association, F.A. was closed by the Office of Thrift Supervision. The Federal Deposit Insurance Corporation (FDIC) was then named Receiver. Subsequent to the closure, U.S. Bank acquired the assets and most of the liabilities of Downey Savings from the FDIC as Receiver for Downey Savings. Any claims by equity holders were not acquired.
There was no publicly owned stock in Downey Savings. If you are an equity shareholder, your shares are in Downey Financial Corporation, Newport Beach, CA, the holding company for Downey Savings, and not the institution. Downey Financial Corporation and the interests of equity, debt holders or other creditors of Downey Financial Corporation are not included in the closure or receivership of the institution. Please contact Downey Financial Corporation directly for information:
3501 Jamboree Rd
All claims against Downey Savings, together with proof of the claims, must be submitted in writing to the Receiver at the following address:
FDIC as Receiver of Downey Savings
1601 Bryan Street
Dallas, TX 75201
Attention: Claim Agent
13. Why do all deposits, insured or not, pass in some transactions but not in others?
The FDIC is required by law to employ the least-cost resolution measure for each failed financial institution. The most frequent result is for the FDIC to transfer only the insured deposits in a merger transaction. The FDIC has been able to transfer all deposits in about 25% of the failures over the past 15 years.
For more information: www.fdic.gov/bank/individual/failed/downey.html