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TUESDAY, NOVEMBER 24, 2009
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7

Feds Close 9 More Banks

Failures, mostly in west, bring total to 115

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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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7 comments
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Reader83544188
Oct 31, 09 8:57 AM CDT
US Bank is a major player that didn't fool with sub prime loans and government bailout cash. They're stock has gone from under $2.00/share to about $8/share since last March. Good, solid bank with top quality management. Reply
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IN RESPONSE:
JoeQ
Oct 31, 09 12:15 PM CDT
Buy and hold? LOL
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BlueAyez
Oct 31, 09 10:48 AM CDT
So how, and more importantly when, is this bleeding going to stop? The banking regulations of the 1930's were put in place for a reason. Businesses will do whatever is legal even if that means crashing the economy. Reply
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+1
IN RESPONSE:
Snowleopard
Oct 31, 09 12:24 PM 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.
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IN RESPONSE:
Cat-Lover
Oct 31, 09 5:27 PM 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.
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