Article: State S&L department in death throes due to federal conversions. (California State Department of Savings and Loan Associations)

State S&L department in death throes due to federal conversions

The State Department of Savings and Loan Associations is in its death throes.

"We are planning a skeleton crew of 10 people after July 1 unless the legislature takes immediate action to provide us with general funds," said Shirley Thayer, senior staff counsel at the department.

Such legislation seems unlikely, as the State Senate Committee on Finance and Insurance is currently considering a bill drafted by State Sen. Dan McCorquodale (D-San Jose) to require all state chartered S&Ls to convert to federal charter within one year. Such a bill would effectively shut down the state ...

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