Nine U.S. banks seized

Nine U.S. banks seized in largest one-day haul

LOS ANGELES (Reuters) – U.S. authorities seized nine failed banks on Friday, the most in a single day since the financial crisis began and the latest stark sign that substantial parts of the nation’s banking industry are being crippled by bad loans.

The move brought the total number of failed banks in 2009 to 115 — their highest annual level since 1992 — with analysts expecting more to come. Among the lenders seized Friday was Los Angeles-based California National Bank, in what was the fourth-largest U.S. bank failure this year.

The largest institution to fail in the current financial crisis was Washington Mutual, which boasted $307 billion in assets when it was shuttered in September 2008.

U.S. Bancorp on Friday acquired the nine banks that had been held by FBOP Corp, picking up $18.4 billion in assets and $15.4 billion of deposits.

Visibly worried employees lined up to file into Cal National’s head offices in the heart of a deserted downtown Los Angeles on a chilly Friday evening, where they had their employers’ fate explained to them, regulators said.

“We’re getting ready to turn everything over to U.S. Bank,” said Roberta Valdez, a spokeswoman for the Federal Deposit Insurance Corp, which helped supervise the transfer of FBOP’s assets. “They will continue to operate as normal in the interim,” she added, referring to lenders acquired from FBOP.

U.S. Bancorp — which has been buying up distressed assets this year — is picking up the lenders once owned by FBOP, a private Illinois group with over $18 billion in assets that owned banks in Texas, Illinois, Arizona and California.

Cal National is FBOP’s largest bank by branches. Others that will now go under the U.S. Bancorp umbrella included BankUSA, Citizens National Bank, Madisonville State Bank, North Houston Bank, Pacific National Bank, Park National Bank, San Diego National Bank, and the Community Bank of Lemont.

“This transaction is consistent with the growth strategy that we have outlined many times in the past, which includes enhancing our existing franchise through low-risk, in-market acquisitions,” said Rick Hartnack, vice chairman of consumer banking for U.S. Bancorp.

“This transaction adds scale to our current California, Illinois and Arizona footprints.”


In the “near future,” all nine lenders’ branches will be re-branded U.S. Bank, which is the California-focused unit of U.S. Bancorp’s that operates a network of more than 770 branches across Illinois, Arizona and California.

U.S. Bancorp did not specify what would happen to the new employees it inherits.

Cal National operates 68 branches across Southern California with more than $7 billion in assets. As of June 30, the lender maintained five times as much foreclosed property on its books and twice as many non-current loans as it had a year earlier, according to the Los Angeles Times, which first reported news of its evening takeover on Friday.

Cal National lost about $500 million on heavy investments in Fannie Mae and Freddie Mac preferred shares, the newspaper added, referring to securities rendered nearly worthless by the government takeover of the mortgage firms last year.

According to FDIC data, Cal National was the fourth biggest bank failure this year in terms of assets, just edging out Corus Bank, seized Sept 11 with a flat $7 billion of assets.

A bank official who answered the main number at Cal National’s headquarters said they could not talk at the time.

Banks are still cleaning up their balance sheets from the recent credit boom that fueled banks’ appetite to extend loans, many with poor underwriting and triggers that caused borrowers’ payments to spike to unaffordable levels.

More lenders are expected to go under this year as the industry tries to get a handle on commercial real estate loans that will continue to worsen, as more strip malls go vacant and residential developments stall.

Banks held about $1.7 trillion in commercial real estate loans at the end of September, according to Federal Reserve data, or about 15 percent of their total assets. But to the extent these loans weaken, small banks are likely to be hit the hardest because larger banks were better diversified.

Banks that analysts say could risk big losses include Salt Lake City’s Zions Bancorp, Columbus, Georgia’s Synovus Financial Corp and Dallas-based Comerica Inc.

Before FBOP, U.S. Bancorp bought Downey Savings of Newport Beach and PFF Bank & Trust of Pomona when those thrifts failed last November, the newspaper said. Just this month, U.S. Bancorp bought 20 Nevada branches from BB&T Corp, which had acquired them as part of its deal to buy Colonial BancGroup Inc, it added.

Posted in Banks and tagged .


  1. Pingback: rx generic viagra

  2. Pingback: viagra substitute walmart

  3. Pingback:

  4. Pingback: brighton taxi quote

  5. Pingback: brighton to london taxi

  6. Pingback: Viagra 200 mg tablets

  7. Pingback: where can i buy Viagra 130mg

  8. Pingback: Viagra 100mg pills

  9. Pingback: Viagra 100 mg pills

  10. Pingback: Viagra 50 mg without prescription

  11. Pingback: where can i buy Viagra 50 mg

  12. Pingback: Viagra 25 mg tablet

  13. Pingback: cheap Cialis 60 mg

  14. If you are going for finest contents like myself, just pay a visit this site
    everyday as it gives feature contents, thanks

  15. Various days afterward the first appearance of tadalfil on the market, researchers toyed with the approximation of a chronic, low-acid expression to foster raise spontaneity.
    In 2008, Eli Lilly obtained FDA blessing for the once-each day establishment of tadalafil.
    In October 2011, tadalafil (Cialis) was as well approved to dainty benignant prostate hyperplasia
    (BPH) with or without ED. Avanafil (Stendra) was approved in Apr
    2012, oblation an attack of litigate as betimes as 15 transactions afterward brass
    and farther expanding treatment options for workforce with ED.

  16. health risks of fiberglass insulation
    <a href=" ">reputable canadian mail order pharmacies</a>

  17. Pingback: lasix 100mg tablets

  18. Pingback: allegra 180mg medication

  19. Pingback: allopurinol 300mg for sale

  20. Pingback:

  21. Pingback: antivert 25 mg tablets

  22. canadian pharmacy viagra: online pharmacy
    [url=]viagra canada[/url] female family doctors near me

  23. canada pharmacies: reputable canadian mail order pharmacies [url=]online pharmacy without a prescription[/url] canadian pharmacy

  24. where do viagra emails come from: viagra pills [url=]can i buy viagra at the chemist[/url] cialis patent bis

  25. kamagra oral jelly kaufen deutschland [url=]kamagra[/url] kamagra high blood pressure – kamagra 100

  26. Really plenty of amazing data. [url=]kamagra tablets for sale uk[/url] kamagra oral jelly phuket
    kamagra buy u.s: kamagra

  27. payday loans baghdadzoo [url=]personal loans[/url] cash explosion show 3

  28. Pingback: avapro 150mg without a doctor prescription

  29. Pingback: avodart 0,5 mg over the counter

Leave a Reply

Your email address will not be published. Required fields are marked *

Human Verification: In order to verify that you are a human and not a spam bot, please enter the answer into the following box below based on the instructions contained in the graphic.