N.J. Savings Bank Shut Down

11390_closed N.J. Savings Bank Shut Down The Office of the Comptroller of the Currency (OCC) appointed the Federal Deposit Insurance Corp. (FDIC) as receiver for Fort Lee Federal Savings Bank, based in Fort Lee, N.J. The FDIC entered into a purchase and assumption agreement with Alma Bank, Astoria, N.Y., to assume all of the deposits of Fort Lee Federal Savings Bank.

In a press statement, the OCC said that it ‘acted after finding that the institution had experienced substantial dissipation of assets and earnings due to unsafe or unsound practices. The OCC also found that the institution incurred losses that depleted its capital, the institution is critically undercapitalized, and there is no reasonable prospect that it will become adequately capitalized without federal assistance.’

As of Dec. 31, 2011, Fort Lee Federal Savings Bank had one branch office and approximately $51.9 million in total assets.


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