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Cal America Savings Placed in Receivership

September 20, 1986|From a Times Staff Writer

The Federal Home Loan Bank Board placed Cal America Savings & Loan of Walnut Creek in receivership on Friday because it believed the S&L to be in "unsafe and unsound condition to transact business."

Cal America Savings has $414 million in assets, five branches in the San Francisco Bay Area and one loan production office in Anaheim. It will remain open with a new federal charter and new management provided by Bay View Federal Savings & Loan in San Mateo, regulators said.

According to a statement from the bank board, Cal America used high-cost savings, known as brokered deposits, to fund loans "characterized by imprudent lending practices and deficient appraisals."

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