SAN DIEGO — Sun Savings & Loan Assn., buffeted by two years of red ink and bitter squabbles, was shut down by federal regulators late Friday.
Sun's five branches--four in San Diego and one in Mission Viejo--will reopen Monday as outlets of the newly formed Flagship Federal Savings & Loan Assn. and will be operated under a management contract by Great Western Savings of Beverly Hills.
Flagship's five-member board will be chaired by Los Angeles financial consultant Jay Janis, a former chairman of the Federal Home Loan Bank Board.
Six-year-old Sun Savings, with $374 million in assets, has operated under severely restrictive federal guidelines for the past four months and had a $2.4-million negative net worth at the end of the first quarter.