SD National Bank absorbed by U.S. Bank after feds step in
Nov 1, 2009 By City News Service - La Jolla Light
San Diego National bank and it has 28 branches was absorbed by U.S. Bank after federal regulators seized it and moved to assure customers that their deposits were insured.
The bank failure is being blamed on deep losses in mortgage securities issued by Fannie Mae and Freddie Mac, as well as investments in the two firms. The government took both under conservatorship in September 2008, the Los Angeles Times reported.
Depositors will automatically become depositors of U.S. Bank and continue to be insured by the Federal Deposit Insurance Corp.
San Diego National Bank is owned by privately held Oak Park, Ill-based FBOP Corp. California National Bank, also owned by FBOP, along with its 68 branches, were reflagged as U.S. Bank on Saturday, along with eight smaller banks.
California National, with most of its branches in Los Angeles and Orange counties, ranked as Los Angeles County's fourth biggest bank, with $7.8 billion in assets and $6.2 billion in deposits, the Los Angeles Times reported.
Customers with questions about the closure can call the FDIC at (800) 913-5861 between until 6 p.m. Sunday and 8 a.m. to 8 p.m. weekdays.
San Diego National Bank was among nine banks that were subsidiaries of FBOB Corp. that were closed by the FDIC Friday. FBOB Corp. was not closed and was not subject to Saturday's actions.
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