First Fed worries are unfounded

Regarding “Official calls bank system secure” (July 21): To link First Fed to “analyst concerns” creates a level of unease and fear that is totally unfounded. First Fed is not currently in any danger of being taken over by the FDIC, nor do we foresee any scenario that could even put us in that position.

First Fed has nearly twice the regulatory capital required to be considered “well-capitalized” under federal standards. First Fed has never been, nor are we currently, a subprime lender. We decreased our originations of option adjustable-rate mortgages in late 2005.Today we are funding traditional single-family loans that are fully underwritten with full documentation. The weakness in the real estate market in no way affects the safety of deposits insured by the Federal Deposit Insurance Corp.

First Fed has weathered many economic cycles since our founding in 1929. We will see our way through this current cycle as we have in prior cycles over the last eight decades.

Babette E. Heimbuch,

Chairman, First Federal Bank of California

Los Angeles