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Feds Close 9 More Banks

Failures, mostly in west, bring total to 115

By the Associated Press

Posted Oct 31, 2009 7:14 AM CDT
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(AP) – Regulators have shut California National Bank of Los Angeles and eight smaller related banks as the weak economy continues to produce a stream of loan defaults. The banks closed yesterday by the FDIC were in California, Illinois, Texas and Arizona. They were divisions of privately held FBOP Corp., a bank holding company based in Oak Park., Ill.

US Bank in Minneapolis, a division of US Bancorp, agreed to assume the deposits and most of the assets of the banks, which will reopen as US Bank branches today. The closings boost the number of failed US banks this year to 115. In 1989, during the savings-and-loan crisis, the FDIC closed 534 banks, or about 10 a week.

California National Bank headquarters sits in front of the downtown Los Angeles skyline, Friday, Oct. 30, 2009, in Los Angeles.
California National Bank headquarters sits in front of the downtown Los Angeles skyline, Friday, Oct. 30, 2009, in Los Angeles.   (Mark J. Terrill)
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COMMENTS
Showing 3 of 6 comments
Cat-Lover
Oct 31, 2009 10:27 AM CDT
BlueAyez: You ask when "this bleeding going to stop..., in reference to banks going under. Did you lose any money you had in bank deposits? I ask only because of all the investments and ways to save money, bank deposits have always been the safest and always remain so.
Snowleopard
Oct 31, 2009 5:24 AM CDT
bank assets are currently overpriced (homes, mortgages, securitized debt). this means that banks liabilities are greater than their equity, hence bankruptcy and liquidation. When those same assets are transferred to other banks, they are done so at a discount, meaning that they'll once again be able to generate some revenue for the controlling bank. All of this is a natural part of the deflation process.
JoeQ
Oct 31, 2009 5:15 AM CDT
Buy and hold? LOL

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FDIC • banks • loan defaults

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