Fremont General files for bankruptcy
June 19th, 2008, 10:30 am · 3 Comments · posted by Andrew Galvin
Fremont General Corp., the Brea-based parent of the bank (and former subprime lender) Fremont Investment & Loan, said yesterday that it filed for Chapter 11 bankruptcy, something it had predicted last month.
The filing came a day after CapitalSource Inc., an investor and lender, said federal regulators approved its planned purchase of $5 billion in deposits and 22 branches of Fremont Investment & Loan.
Fremont General said in May it likely would file for bankruptcy to facilitate the sale of its deposits, if the sale was approved by the Federal Deposit Insurance Corp. One reason to file bankruptcy: Fremont doesn’t believe it could put together all the documents necessary to solicit shareholder votes on a sale.
Fremont General said Wednesday that the bankruptcy filing was made “in connection with such regulatory approvals” and that “the Company intends to promptly file a motion with the Bankruptcy Court for its approval to complete the acquisition of FIL’s assets and deposits by CapitalSource in accordance with federal bankruptcy laws.”
“For the avoidance of any doubt, the company wishes to make clear that Fremont Investment & Loan has NOT filed for bankruptcy and was not included as part of the bankruptcy filing by the Company. The Bank will continue to operate its business in the normal course. The bankruptcy filing by Fremont General does not and will not impact the operation of the Bank or affect its FDIC insurance of deposit accounts, which will continue to the fullest extend provided by law.”
In other words, if you’ve got less than $100,000 in your account at Fremont Investment & Loan, you have nothing to worry about.
- FDIC approves sale of Brea bank’s assets
- Fremont expects to file for bankruptcy
- Regulators give Fremont 60 days to raise capital or sell bank
- Fremont’s woes mount
- It still pays to be a mortgage executive
- That didn’t take long
- O.C. foreclosures hit new record in May, break 1,000 in a month for first time
- 1st drop in ‘08 for O.C. distressed homes for sale
- Orange County’s mortgage market distress could soon top the U.S.
June 19th, 2008 at 11:25 am
Unless they’re paying 10% interest on my checking account, why would I want to keep my money there at all?
June 23rd, 2008 at 8:45 pm
But it’s the same people running Fremont General who are running Fremont Investment & Loan.
Caveat emptor.
July 22nd, 2008 at 3:24 am
Heck, isn’t it the same people who were running Fremont Compensation Insurance a few years ago who took that bankrupt as well? It seems like a business model they use over and over: Like the cartoon: “Just remember, it’s _first_ rape, _then_ pillage, and only _after_that_ burn …”