Western Savings and Loan
Western Savings and Loan was an American financial institution founded by the Driggs family.
| Type | Private |
|---|---|
| Industry | Savings and loan association |
| Fate | Insolvency |
| Successor | Bank of America Arizona (and later Bank of America) |
| Founded | 1929 in Phoenix, Arizona |
| Defunct | June 1, 1990 |
| Headquarters | Phoenix, Arizona, United States |
Area served | Arizona, Utah |
Key people | Junius Driggs, CEO Douglas Driggs |
| Revenue | $6 billion USD |
The Driggs family came to Arizona in 1921 after trading everything they owned—a bank, drugstore, hotel, and wheat farm in Driggs, Idaho—for a section of cotton land in Maricopa County. Their timing was unfortunate as cotton prices plummeted just as their crop came in and they were forced to take jobs selling building and loan certificates. In 1929, the Driggs family pooled $5,000 to found the Western Building and Loan Association, which became Western Savings.
Success and eventual failure
Western Savings and Loan eventually became a $6 billion savings and loan institution. Western shared a position on the list of the nation's 100 largest savings and loans with other Arizona-based institutions — MeraBank was number 27 on the list, Western came in at 37th, Great American was 67th, and Pima was 82nd. But in 1989, Western Savings moved into second place — not for its size, but for the amount of its losses, with a $1.06 billion net deficit, following a substantial but smaller loss the previous year. Western Savings was taken over by the Resolution Trust Corporation, the federal depositor for the savings and loan crisis bailout in June 1989.[1] In June 1990, Bank of America paid the Resolution Trust Corporation $81 million for Western Savings' $3.5 billion in deposits in 60 branches in Arizona and one branch in Salt Lake City, Utah, and converted the thrift into commercial bank called Bank of America Arizona.[2][3] In 1995, President Gary Driggs pleaded guilty to two felony charges and was fined $10,000 and placed on probation for five years.[4]
Accomplishments and recognition
American Newcomen honored Western Savings and Loan Association in the year of the company's 40th anniversary. Since it was formed by the Driggs family in the Spring of 1929, six months before the historic stock crash, Western Savings had at that time grown to become the largest savings and loan association in Arizona and among the 100 largest in the United States. The major objectives of the association were the encouragement of thrift and the promotion of home ownership. Over the years up to that point, more than 30,000 first mortgage loans had been made, totaling more than 390 million dollars, thus providing an important factor in the growth and development of Arizona.[5]
References
- Brown, Matthew (June 22, 1989). "Western S&L Falls to Regulators". Deseret News.
- Furlong, Tom (June 2, 1990). "BankAmerica Buys Arizona's 2nd-Largest S&L : Thrifts: It Outbids Wells Fargo and Security Pacific in a Federal Auction. Other Banks Have Suffered Huge Losses in the State in Recent Years". Los Angeles Times.
- Roche, Lisa Riley (August 31, 1990). "Utah, Arizona Overseeing Bank's Branch". Deseret News.
- "President of failed Western Savings is fined". Tucson Citizen. November 28, 1995.
- "American Newcomen". The Newcomen Society of the United States. Archived from the original on May 27, 2005. Retrieved September 20, 2007.
External links
- Hayes, Thomas C. (November 7, 1982). "Thrift Executives: John and Gary Driggs; Arizona's Banking Brothers Branch Into Casinos, Hotels And Land". New York Times.
- Schmidt, Susan (June 15, 1992). "$1.5-Billion Suit Filed in S&L's Failure : Thrifts: Former officials and borrowers at Western Savings & Loan face civil fraud and racketeering charges". Los Angeles Times.
- Knight, Jerry (November 14, 1990). "Ranch Deal Symbol Of SL Crisis". Washington Post.
- Schmidt, Susan (July 10, 1992). "Arizona Thrift's Tangled Legacy". Washington Post.
