FDIC seizes escrow from Am. Savings.The FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). has notified American Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. customers with commercial real estate escrow escrow Instrument, such as a deed, money, or property, that constitutes evidence of obligations between two or more parties and is held by a third party. It is delivered by the third party only upon fulfillment of some condition. accounts that if their accounts held more than $100,000, they would only recieve 75 cents on each dollar of the remainder. A spokesperson for the FDIC said they called 72 commercial real estate owners on the evening on June 25 to tell them the news and followed up with a letter sent by an overnight service. These owners are now facing July 1 tax payments with not enough money in the coffers. Jack Weprin, a partner at Goldberg Weprin & Ustin, said of four buildings he owns, the FDIC is "grabbing" $200,000. Speaking with clients and other people he knows, he had accounted for $1 million the Feds were taking. "This is going to be millions of dollars," he said. "It's stealing - it's insane." The FDIC spokesperson said the total loss to 8,600 depositors is $119 million. Money from escrow accounts, sources say, is about $2.23 million. The cost to the bank insurance fund to cover American Savings Bank losses, the spokesperson said, would be $400 million. A New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of State Banking Dept. spokesperson, said "Once we close (the bank) we make the FDIC the reciever. It's deplorable de·plor·a·ble adj. 1. Worthy of severe condemnation or reproach: a deplorable act of violence. 2. ." An FDIC spokesman said, "The bank should have let these people know (when they took out the mortgage) that this was subject to the deposit insurance law. There's nothing we can do about it. It's the law." |
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