MINNEAPOLIS — Federal regulators today took over the operations of Midwest Federal Savings & Loan Assn. and announced the resignation of the thrift's chairman, who is among the targets of an FBI fraud probe.
The Federal Home Loan Bank of Des Moines said it had declared Midwest Federal insolvent and appointed the Federal Deposit Insurance Corp. conservator under a program announced by President Bush last week.
In the same statement, the home loan bank said Midwest Federal Chairman Harold Greenwood Jr. and the thrift's managing officer, Charlotte Massica, resigned. U.S. Atty. Jerome Arnold of Minneapolis last week said Greenwood and Massica were among the targets of an FBI investigation into possible fraud at Midwest Federal.
Thurman C. Connell, president of the Des Moines bank, said in a statement that Greenwood resigned because "he needed to focus on personal issues." "Greenwood, in cooperation with federal regulators, determined his resignation was in the best interests of Midwest Federal," he said.