Western Savings and Loan
Encyclopedia
Western Savings and Loan was an American
financial institution founded by the Driggs family
.
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 since when their crop came in cotton prices plummeted 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.
, the federal depositor for the savings and loan crisis
bailout.
, 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.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
financial institution founded by the Driggs family
Driggs family
The Driggs Family, is a prominent American business family descended from Joseph Driggs of Middletown and East Haddam, Connecticut .-Origin of Joseph Driggs:Joseph Driggs is of undetermined ancestry...
.
The Driggs family came to Arizona
Arizona
Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix...
in 1921 after trading everything they owned—a bank, drugstore, hotel, and wheat farm in Driggs, Idaho
Driggs, Idaho
Driggs is a city in Teton County, Idaho, United States. It is part of the Jackson, WY-ID Micropolitan Statistical Area, and is located in Teton Valley. The population was 1,100 at the 2000 census. The city is the county seat of Teton County...
—for a section of cotton
Cotton
Cotton is a soft, fluffy staple fiber that grows in a boll, or protective capsule, around the seeds of cotton plants of the genus Gossypium. The fiber is almost pure cellulose. The botanical purpose of cotton fiber is to aid in seed dispersal....
land in Maricopa County. Their timing was unfortunate since when their crop came in cotton prices plummeted 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
It eventually became a $6 billion savings and loan institution. Western had 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 CorporationResolution Trust Corporation
The Resolution Trust Corporation was a United States Government-owned asset management company run by Lewis William Seidman and charged with liquidating assets, primarily real estate-related assets such as mortgage loans, that had been assets of savings and loan associations declared insolvent by...
, the federal depositor for the savings and loan crisis
Savings and Loan crisis
The savings and loan crisis of the 1980s and 1990s was the failure of about 747 out of the 3,234 savings and loan associations in the United States...
bailout.
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 crashWall Street Crash of 1929
The Wall Street Crash of 1929 , also known as the Great Crash, and the Stock Market Crash of 1929, was the most devastating stock market crash in the history of the United States, taking into consideration the full extent and duration of its fallout...
, 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.