Fremont General Corp. says “it is the expectation of the board of directors” that it will file for voluntary Chapter 11 bankruptcy as the Brea-based subprime lender heads toward complete liquidation.
The parent of Fremont Investment & Loan said it reached an agreement Thursday with Litton Loan Servicing LP, an affiliate of Goldman Sachs & Co., to take over servicing of its $12.2 billion loan portfolio.
In April, Fremont announced a purchase agreement with CapitalSource TRS Inc. to assume ownership of Fremont’s branches and banking operations, a process that is still awaiting regulatory approval.
Fremont said the bankruptcy will not affect the federally-insured deposits of its clients as long as their total accounts are worth less than $100,000.
Click HERE to see the company’s latest filing.
- Fremont to sell bank assets to CapitalSource
- Regulators give Fremont 60 days to raise capital or sell bank
- Fremont General running low on cash, will explore sale
- New Century’s bankruptcy report blames KPMG, executives for misstatements
downey saving may be next…
Best get educated on your FDIC insurance John! Everyone’s entitled to $100K of coverage, but you can have more coverage based on how your accounts are titled. For example, joint account holders are entitled to $100K per owner, and trust accounts are entitled to $100K per qualified beneficiary. Don’t let your apparent lack of knowledge about how FDIC insurance works cause everyone to panic.