Atlas Savings & Loan

Historical note

Atlas Savings & Loan Association was the first financial institution established by gays and lesbians in the United States. John Schmidt, its chairman, along with ten gay directors, including two women, formed Atlas in 1980 in San Francisco. The savings and loan opened for business in November 1981 and identified the gay and lesbian community as its primary market. In August 1982 Atlas opened a branch on 18th and Castro Streets and by January 1985 had three branches in San Francisco. By June 1985 Atlas began to suffer as a result of bad construction loans, joint ventures and shared loans with two other savings and loans. In August 1985 Atlas was declared insolvent. The Federal Home Loan Bank Board took control of the savings and loan in July 1986 and its assets were sold to Empire Savings of New York.

In September 1986 the Federal Bureau of Investigation began conducting an inquiry into allegations of wrong-doing by former senior management as part of its investigation into three other failed savings and loan associations in Northern California. A group of former Atlas shareholders sued John Schmidt and its auditing firm, Price Waterhouse, in 1989 claiming that they were misled as to Atlas' financial condition. In 1990 Empire of America Bank (formerly Empire Savings of New York) was placed in conservatorship.