First Federal Savings and Loan Association of Toledo v. Fidelity and Deposit Company of Maryland

WELLFORD, Circuit Judge.

This is a saga indicating one of many problems recently encountered in this country by savings and loan institutions which operated with something less than prudence and sagacity in the handling and use of customer savings. This case also illustrates the fast and loose manner of operation of financial houses such as those involved here, forced into bankruptcy by reason of the inadequate practices and safeguards utilized by these businesses.

Beginning in the early 1980s, the Savings Building and Loan Company of Sandusky, Ohio (Sandusky), predecessor by reason of merger…