Fenning

Plaintiff Mark J. Penning appeals from a judgment dismissing his class action complaint after demurrer by defendants Glendale Federal Bank, its former and current parent companies, and its securities brokerage subsidiary. We reverse.

Facts

Glendale Federal Bank (the Bank) is a federally chartered savings and loan association organized and operating under the Home Owners’ Loan Act of 1933 (HOLA), as amended, 12 United States Code section 1461 et seq. The Bank is federally insured by the Federal Deposit Insurance Corporation (FDIC), and federally regulated by the Office of Thrift Supervision (OTS, formerly known as the Federal Home Loan Bank Board). Glendale Brokerage Services, Inc., doing business as Glenfed Brokerage Services (Glenfed Brokerage), is a wholly owned subsidiary of the Bank, organized and existing under the laws of the State of California. As such, it is a “service corporation” within the meaning of the HOLA regulations. ( 12 C.F.R. § 545.74 (1995).) A member of the National Association of Securities Dealers, Glenfed Brokerage provides securities brokerage and investment advisory services. Glenfed, Inc., and Glendale Investment Corporation are,…