A Pittsburgh Savings and Loan has been shut down by the federal government because of stability concerns. The 119 year old Dwelling House Savings and Loan ran into financial trouble after cyber thieves syphoned $3 million of the S & L's reserves through electronic transfers.
On June 30, Dwelling House President John Haines announced that he had submitted a capitalization plan to meet the deadline imposed by federal bank regulators. At that time, Haines said they had made progress in recovering some of the money from other financial institutions that unwittingly processed the fraudulent transfers. Haines refused to disclose details of the plan until F.D.I.C. officials respond to it..."What we can say at this point is that we are confident we have a way forward that will meet expectations of federal regulators in terms of recapitalization and recovery from a terrible criminal act."
However, in shutting down Dwelling House yesterday, the Office of Thrift Supervision said the S & L was "critically undercapitalized and had no reasonable prospect of recovering."
So, PNC will take over all of Dwelling House's deposits and about $3 million in assets. The remainder will be kept by the FDIC. The Dwelling House office on Centre Avenue will reopen Monday as a branch of PNC.