LA Times: California National Bank fails, is seized by FDIC

[marmar]

California National Bank fails, is seized by FDIC
The Los Angeles-based, 68-branch bank is immediately acquired by the U.S. Bank unit of U.S. Bancorp.

By E. Scott Reckard
October 31, 2009


Regulators seized Los Angeles-based California National Bank on Friday night in the country's fourth-largest bank failure this year.

The 68-branch bank, a unit of FBOP Corp., was immediately acquired by the U.S. Bank unit of Minneapolis-based U.S. Bancorp, with no losses to be incurred by depositors, the Federal Deposit Insurance Corp. said.

The branches, mostly in Los Angeles and Orange counties, were set to reopen as usual Saturday or Monday as branches of U.S. Bank, which has been expanding rapidly in Southern California.

Eight smaller banks owned by FBOP, a privately held Oak Park, Ill., company, were also taken over by regulators and acquired by U.S. Bank. They include San Diego National Bank, with 28 offices, and San Francisco's Pacific National Bank, which has 17.

The collapse of FBOP's banks, attributed to losses on securities issued by the giant mortgage companies Fannie Mae and Freddie Mac, was the latest in a rash of financial failures that began last year with government takeovers of 25 banks. Before Friday, 106 U.S. banks had failed this year. ............(more)

The complete piece is at: http://www.latimes.com/business/la-fi-bank-failure31-2009oct31,0,5224531.story

[aquart]

1. Happy Friday.

[grasswire]

2. how is the deal made with the purchasing bank?

Is there a bid process? Or is this some kind of favoritism? Is there any oversight?

[1]

4. deal? bid process? can you read? they "seized" it. omg! the horror!

[grasswire]

5. us bank didn't seize it.

so who gave it to them? and under what process?

[Trajan]

3. For those who wonder about such things ...

FBOP = First Bank of Oak Park